What is the sales tax in California?
Combined rate, the threshold that makes you register, and the rules that decide what you charge.
The California state sales tax rate is 7.25%. Local rates average 1.6%, for a combined average of 8.85%, and reach 10.75% in the highest jurisdictions. A remote seller has to register once sales into California pass $500,000 in sales into the state over the previous or current calendar year. Charge the rate at the buyer’s address. Sellers with a location in the state charge their own local rate instead.
- State rate
- 7.25%
- Average local rate
- 1.6%
- Combined average
- 8.85%
- Highest in the state
- 10.75%
Do you have to register?
Economic nexus threshold
$500,000
Measured over the previous or current calendar year. Order count does not matter here, only the dollar figure. Physical presence — staff, an office, or stock sitting in a 3PL in the state — creates the obligation immediately, before any threshold applies.
What you charge, and on what
- Which address sets the rate Charge the rate at the buyer’s address. Sellers with a location in the state charge their own local rate instead.
- Is shipping taxed Depends how you state it. Separately stated delivery by common carrier is exempt. Handling is taxable, and combining the two makes the whole line taxable.
- Clothing Taxed at the same rate as everything else.
- Groceries Exempt
- Marketplace sales Amazon, Walmart, Etsy, and eBay collect and remit on the orders they process. Sales through your own store stay yours to collect on.
- Registering Register directly with the California Department of Tax and Fee Administration. This state runs its own registration.
Worth knowing about California
- Sourcing is split: state, county, and city portions follow the seller’s location, while district taxes follow the buyer’s. Out-of-state sellers source the whole sale to the buyer.
- The $500,000 threshold counts sales by you and by anyone related to you.
California sales tax questions
What is the sales tax rate in California?
The state rate is 7.25%. Local jurisdictions add an average of 1.6% on top, which puts the typical combined rate at 8.85% and the highest at 10.75%. Because the rate follows the address, the figure you charge depends on where the order is going.
When does a remote seller have to register in California?
Once sales into the state pass $500,000 in sales into the state over the previous or current calendar year. Order count does not matter here — the dollar figure is the only trigger. Physical presence, including inventory held at a 3PL in the state, creates the obligation immediately, before any threshold applies.
Is shipping taxable in California?
Depends how you state it. Separately stated delivery by common carrier is exempt. Handling is taxable, and combining the two makes the whole line taxable.
Is clothing taxed in California?
Clothing is taxed at the same rate as other goods. California does not exempt apparel.
Where the authoritative number is
Rates and thresholds change, and the California Department of Tax and Fee Administration sets them. Check there before you register or file.
Other states with a $500,000 threshold
Know before you cross the line
The threshold above is easy to read and hard to track, because it counts sales from your store, your marketplaces, and your wholesale accounts together. Endless keeps those on one source of truth, so what you have sold into California this year is a number you already have rather than one you assemble after the fact.
This page is a reference, not tax advice. Confirm registration and filing decisions with the California Department of Tax and Fee Administration or a tax professional.