California economic nexus threshold for sales tax
Data version 2026-Q3 · reviewed 2026-07-14
If you sell into California without a physical presence, you may still be required to register for, collect, and remit sales tax once your sales cross the state's economic nexus threshold. Here is where California stands.
California threshold at a glance
| Revenue threshold | $500,000 |
|---|---|
| Transaction threshold | None |
| How they combine | Revenue only |
| Measurement period | Current or previous calendar year |
| State sales-tax rate | 7.25% |
What this means for remote sellers
California uses a revenue-only economic nexus threshold. You establish nexus once your gross sales into California reach $500,000 during current or previous calendar year. The number of separate transactions does not affect the threshold.
How California compares to other states
At $500,000, California sets a higher bar than the typical $100,000 threshold — only 3 jurisdiction(s) require this much in sales. It is one of 29 jurisdictions that look at revenue only — the number of transactions does not count. Its 7.25% base sales-tax rate is the highest state-level rate in the country.
How the California threshold is measured
California measures the threshold over Current or previous calendar year. Gross sales generally include taxable and (in many states) exempt sales; rules on marketplace-facilitated sales vary. Verify the specifics with the California department of revenue.
Do marketplaces collect California sales tax?
California requires marketplace facilitators — platforms such as Amazon, Etsy, eBay, and Walmart — to collect and remit California sales tax on sales made through them. If you sell only through those marketplaces, the platform generally collects the tax for you. Sales you make directly — through your own website or store — still count toward your California economic nexus threshold and remain your responsibility. Whether marketplace-facilitated sales also count toward your own threshold varies, so confirm with the California Department of Tax and Fee Administration (CDTFA).
What to do if you've crossed it
- Register with the California Department of Tax and Fee Administration (CDTFA) for a sales-tax permit.
- Begin collecting tax on taxable sales to California customers.
- File and remit on the schedule the state assigns.
- Confirm treatment of marketplace sales and any local taxes with a professional.
Not sure where you stand?
Check your economic nexus exposure across all 50 states and DC in seconds — free.
Tools to get compliant
Triggered nexus somewhere? These tools handle registration, collection, filing, and remittance so you don't have to.
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California economic nexus FAQ
What is the economic nexus threshold in California?
California uses a revenue-only economic nexus threshold. You establish nexus once your gross sales into California reach $500,000 during current or previous calendar year. The number of separate transactions does not affect the threshold.
Do remote sellers have to collect California sales tax?
If your sales into California cross the threshold ($500,000) during current or previous calendar year, you generally must register, collect, and remit California sales tax.
Does California count the number of transactions?
No. California measures only revenue ($500,000); the number of transactions does not matter.
When did California's economic nexus rules take effect?
California began enforcing economic nexus on April 1, 2019. Economic nexus stems from the 2018 South Dakota v. Wayfair Supreme Court decision; states phased in their rules afterward. Note: Includes sales by related persons; district use tax collection may also apply.
What is the sales tax rate in California?
California's statewide base sales-tax rate is 7.25%. Local jurisdictions may add their own tax, so the total rate at a given address is often higher. Once you establish nexus, you collect at the combined state and local rate for the destination.
Do marketplaces like Amazon collect California sales tax?
Yes. California requires marketplace facilitators — platforms such as Amazon, Etsy, eBay, and Walmart — to collect and remit sales tax on sales made through them. Sales you make directly, through your own website or store, still count toward your California economic nexus threshold.
How do I register for a California sales tax permit?
Register with the California Department of Tax and Fee Administration (CDTFA). You will need your business information and the date you first crossed the threshold. After registering, the state will assign a filing frequency based on your sales volume.
Related states
Informational only — not legal or tax advice. Verify with the California department of revenue and a qualified professional.