California Sales Tax Guide for E-Commerce Retailers
Fast Facts About California Sales Tax
|California states sales tax rate||7.25%|
|California taxing authority||Department of Tax and Fee Administration (CDTFA)|
|California sales tax questions phone number||1-800-400-7115|
Am I required to collect sales tax in California?
Businesses that have an employee, location (including inventory in a warehouse), or who do other businesses in the state are required to register for a sales tax permit and collect sales tax from buyers in California.
E-commerce businesses with economic nexus in California are also required to register and collect.
You have economic nexus in California if you made more than $500,000 in sales to California customers in the previous or current calendar year.
How to Collect California Sales Tax
California is one of the most complicated US states when it comes to collecting the right amount of sales tax. Though it seems counterintuitive, this is especially true if both buyer and sellers are located in the state of California!
How to Collect Sales Tax in Intrastate Sales in California
The state of California is divided into sales tax “districts”. If you and your seller are both located in the same district, you are required to charge the California state sales tax plus your district’s tax.
If you and your buyer are not located in the same district, you are only required to charge your buyer the California state sales tax rate.
How to Collect Sales Tax in Interstate Sales in California
If you are located outside of California or the sale originates outside of California but your buyer is in California, then simply charge the full California state + district (city, county, etc.) sales tax rate to your buyer.