Sales tax permit · California
Registering for a California sales tax permit
California's state sales tax rate is 7.25%, local taxes come on top, and its remote seller threshold is $500,000 in sales, measured over the preceding or current calendar year. If your business has crossed it and needs a permit, we prepare and submit the California registration through www.cdtfa.ca.gov/industry/wayfair.htm for $99, plus any state fee at cost.
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Digital products in California
CDTFA Tax Guide for Retailers and Purchasers of Digital Products: "Beginning January 1, 2027, sales and use tax generally applies to the retail sale of a digital product," including products transferred electronically or accessed remotely (SB 122). Exemptions listed include custom software, the right to reproduce for distribution, services primarily of human effort and sales for resale; CDTFA says emergency regulations are being drafted.
California's threshold, in its own words
Total sales of tangible personal property for delivery in California over $500,000; the total can include nontaxable sales such as sales for resale. 7.25% is CDTFA's base statewide rate; district taxes are added in many areas.
After the permit is issued
CDTFA assigns quarterly prepay, quarterly, monthly, fiscal yearly or yearly filing based on reported tax or expected taxable sales at registration.
California has a marketplace facilitator law, so sales through a marketplace that collects for you are handled by the marketplace.
Registration portal: www.cdtfa.ca.gov/industry/wayfair.htm. Alabama · sales tax for online sellers
Paperwork only: whether your sales count toward the threshold is a tax question for your preparer. State fees at cost.
Sources
Questions
What is California's remote seller threshold?
$500,000 in sales, measured over the preceding or current calendar year. The state's test has no transaction count.
Are digital products taxed in California?
CDTFA Tax Guide for Retailers and Purchasers of Digital Products: "Beginning January 1, 2027, sales and use tax generally applies to the retail sale of a digital product," including products transferred electronically or accessed remotely (SB 122). Exemptions listed include custom software, the right to reproduce for distribution, services primarily of human effort and sales for resale; CDTFA says emergency regulations are being drafted.
How often are California returns filed?
CDTFA assigns quarterly prepay, quarterly, monthly, fiscal yearly or yearly filing based on reported tax or expected taxable sales at registration.
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Books you keep on your own computer
Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.
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