A Complete Guide to California Sales Tax (Updated 2025)

Important Updates as of 2025

• Economic nexus threshold remains $500,000 in annual sales of tangible personal property into California.
• Statewide base sales tax remains 7.25%, but local district and city add-ons can push total rates much higher. The CDTFA updates local district rates regularly.
• New California Firearm & Ammunition Excise Tax (CFET) — effective July 1, 2024, an 11% excise tax applies to retail sales of firearms, firearm precursor parts, and ammunition by licensed sellers. This is in addition to sales & use tax on firearms and ammunition, and has separate reporting rules.
• Reduced cannabis excise tax rate — effective October 1, 2025, California decreased its excise tax rate on cannabis from 19% to 15%.
• Limited access codes completely phased out — the CDTFA completely phased out limited access codes for online taxpayers profiles on July 2, 2024. Username/password online profiles are now required.
• The rates for sales tax prepayments and excise taxes on fuel have changed, effective July 1, 2025 through June 30, 2026.
• New ways to stay informed with California sales tax — you can now subscribe to an email list to receive publications from California on sales tax and fee updates, newsletters, and other announcements.

Do You Need to Collect and Remit Sales Tax in California? 

If you meet the economic or physical nexus threshold in California, you must register with the CDTFA and pay sales tax. Certain circumstances may exempt you from needing to file, such as selling through a marketplace facilitator. Also, sales tax generally applies to sales of tangible personal property (physical goods); most services remain non-taxable unless the service is part of a sale of tangible personal property. Refer to CDTFA guidance for industry-specific rules.

Do You Have Sales Tax Nexus in California? 

There are two types of nexus:

Physical sales tax nexus in California 

Common indicators of physical nexus include: 

1. Maintaining or using an office, warehouse, storage place, or other physical location in California.
2. Having employees, agents, or representatives in California who solicit or make sales, take orders, or deliver goods.
3. Having tangible property (leased or owned) located in the state.

Economic sales tax nexus in California 

California’s economic nexus rule is triggered if you meet or exceed $500,000 in annual sales of tangible personal property to California addresses (the threshold has remained $500,000 since 2019). Marketplace sales through a registered marketplace facilitator count toward this threshold. Even sales that are exempt or made for resale count toward the threshold for registration.

Are Marketplace Facilitators Required to Collect and Remit Sales Tax in California? 

Yes. Since October 1, 2019, California’s Marketplace Facilitator law requires marketplace facilitators to collect and remit sales by third-party sellers on their platform when the marketplace meets registration requirements. Sellers who use these platforms should verify how the marketplace handles collection and reporting.

What platforms are marketplace facilitators? 

Some platforms that are considered marketplace facilitators are: 

1. Amazon  
2. eBay  
3. Etsy  
4. Walmart (online)  

What are the Current Sales Tax Rates? (Local Rates & District Taxes)

The statewide base sales and use tax rate in California remains 7.25%. However, depending on the location of the sale, additional local “district” taxes often apply. These district taxes are voter-approved add-ons imposed by cities, counties, or other local jurisdictions under the California Department of Tax and Fee Administration (CDTFA).

District tax add-ons generally range from 0.10% to 2.00% (per district). Some areas have multiple overlapping district taxes, which can push total combined rates significantly higher. As a result, total sales tax rates across California currently fall broadly in the range of roughly 7.25% to 10.25% (depending on district taxes).

How to determine the right rates

Because local taxes vary by city, county, and district boundaries, using a broad geographic indicator (e.g. ZIP code or county alone) may be inaccurate. Instead:

• Use CDTFA’s “Find a Sales and Use Tax Rate by Address” lookup tool on their official tax-rate page.
• Stay updated on (or subscribe to) their quarterly tax information bulletins, which show upcoming rate changes.
• If needed, call CDTFA’s customer service (1-800-400-7115) for assistance with tricky jurisdictions or boundary questions.
• Integrate a tax-rate lookup or API into your sales or checkout system to ensure you charge the correct rate by delivery address.

Filing California Sales Tax 

After registering for a California seller’s permit, you can file sales and use tax returns via CDTFA Online Services, or by paper return in limited circumstances. Additionally, you can use an outsourcing service to handle sales tax filing and remittance.

File online 

1. Like most states, California recommends filing sales and use tax returns online for accurate and prompt filing. To file online, you will have to register for an Online Services Profile on CDTFA.  
2. Note that Limited Access Codes (LACs) were phased out in 2022–2024. CDTFA stopped issuing LACs for new registrations (June 30, 2022) and removed LAC functionality for many filers through 2023–2024. As a result, filers and return preparers must use CDTFA username/password accounts and (where appropriate) request and grant online access for third-party preparers.
3. CDTFA’s Online Services offers features beyond filing (filing appeals, requesting payment plans, viewing notices, etc.), so ensure you or your authorized preparer have proper access.

File via paper return 

1. California still accepts paper returns for some filers, but paper filing limits payment options and can increase the risk of reporting allocation errors for local district taxes. For many filers, online filing is mandatory or strongly recommended.

Let us file for you! 

If filing California sales and excise taxes is overwhelming, SalesTaxSolutions.US can help. We handle registrations, filings, and ongoing compliance to keep you focused on your business. See our transparent pricing tiers and sign up today!

When are Sales Tax Returns Due in California? 

When you register with California to file sales and use taxes, CDTFA assigns your filing frequency (monthly, quarterly prepay, quarterly, fiscal yearly, or yearly) based on reported or expected taxable sales. Returns are generally due on the last day of the month following the reporting period. Quarterly prepayments are due by the 24th of the month before the quarter end. If your due date falls on a weekend or state holiday, it is extended to the next business day. Check CDTFA for an exact calendar and any program-specific due dates.