Thresholds, rates, taxability, filing schedules, and the CDTFA — everything a remote seller needs to know about California, on one page.
Either kind of nexus on its own creates the obligation to register, collect, and remit. California measures sales only — there is no transaction-count test.
Any of these creates nexus immediately, regardless of sales volume. Inventory placed in a California FBA warehouse by Amazon is the most common surprise — it counts even if you never chose the location.
The statewide base is 7.25%. District taxes stack on top, so the rate depends on the delivery address — here’s how the major cities compare across product categories.
| Jurisdiction | Combined rate | Tangible property | Digital goods | SaaS | Services |
|---|---|---|---|---|---|
| CaliforniaStatewide base rate | 7.25% | 7.25% | 0% | 0% | 0% |
| Los Angeles | 9.75% | 9.75% | 0% | 0% | 0% |
| San Francisco | 8.625% | 8.625% | 0% | 0% | 0% |
| San Diego | 7.75% | 7.75% | 0% | 0% | 0% |
| San Jose | 10.00% | 10.00% | 0% | 0% | 0% |
| Sacramento | 8.75% | 8.75% | 0% | 0% | 0% |
Digital goods, SaaS, and most services are not taxed in California, so the rate is 0% in every jurisdiction. Rates verified as of June 9, 2026.
Need the exact rate for one address or invoice? Our calculator returns the combined state, county, and district rate.
Open the sales tax calculatorCalifornia taxes tangible goods and very little else — one of the friendlier states for software and digital businesses.
| Product category | Status | What to know |
|---|---|---|
| Tangible personal property | Taxable | Physical goods delivered into the state, at the combined rate of the delivery address. |
| SaaS & cloud software | Not taxable | Remotely-accessed software is exempt for both B2B and B2C — no download means no tangible transfer. |
| Digital goods | Not taxable | Downloads, streaming, e-books, and digital advertising delivered electronically are exempt. |
| Professional services | Not taxable | Consulting, legal, design, and similar services are exempt — unless they are part of producing a physical good. |
| Bundled hardware + software | Partial | The hardware portion is taxable; separately-stated electronic software may be exempt. Itemize your invoices. |
| Shipping & delivery | Partial | Exempt when separately stated and shipped by common carrier; taxable when bundled into the sale price. |
Physical goods delivered into the state, at the combined rate of the delivery address.
Remotely-accessed software is exempt for both B2B and B2C — no download means no tangible transfer.
Downloads, streaming, e-books, and digital advertising delivered electronically are exempt.
Consulting, legal, design, and similar services are exempt — unless they are part of producing a physical good.
The hardware portion is taxable; separately-stated electronic software may be exempt. Itemize your invoices.
Exempt when separately stated and shipped by common carrier; taxable when bundled into the sale price.
The CDTFA assigns your frequency at registration based on expected taxable sales, and adjusts it as you grow. Returns are due even for periods with zero taxable sales.
| Frequency | Return | Due date | Who it applies to |
|---|---|---|---|
| QuarterlyMost common | CDTFA-401-A, Sales and Use Tax Return | Last day of the month after the quarter — Apr 30, Jul 31, Oct 31, Jan 31 | The default assignment for most remote sellers |
| Quarterly + prepayments | CDTFA-401-A plus monthly prepayment vouchers | Prepayments due the 24th of the month after each of the first two months of the quarter | Larger sellers above the CDTFA’s monthly tax threshold |
| Monthly | CDTFA-401-A | Last day of the following month | High-volume sellers, as assigned |
| Annual | CDTFA-401-A or 401-EZ | January 31 for the prior calendar year | Small sellers with low taxable sales |
A Commenda expert will review your California exposure, register you with the CDTFA, and take over the filing calendar — usually within a week.
The California Department of Tax and Fee Administration runs a single online portal for everything sales-tax related. One login covers registration, filing, and payment — no separate local portals.
onlineservices.cdtfa.ca.govRegistration needs a responsible-party SSN or ITIN, business entity details, and projected sales.
Free of charge. Foreign businesses can register, but a US responsible party simplifies the process.
All returns, prepayments, and amendments are filed in the same account — ACH or card.
The CDTFA address lookup returns the exact combined state, county, and district rate.
Check that a customer’s seller’s permit is active before honoring an exemption.
California offers a voluntary disclosure program for out-of-state sellers who come forward before the CDTFA finds them.
Collect a valid certificate at the time of sale and keep it on file — the burden of proof sits with the seller.
FAQ · California
No. Remotely-accessed software with no downloaded component is not subject to California sales tax, for both B2B and B2C sales. If any software is delivered on physical media or downloaded, that portion can become taxable.
No. California uses a sales-only test: $500,000 in sales of tangible personal property delivered into the state in the current or preceding calendar year. There is no 200-transaction test.
Yes. California counts total combined sales of tangible personal property, including exempt sales, sales for resale, and sales made through a registered marketplace facilitator — even though the marketplace collects the tax on those sales.
Foreign businesses can register with the CDTFA, but the application asks for a responsible-party SSN or ITIN and US business details. Many international sellers appoint a US responsible party or use a service like Commenda to handle registration.
Yes. Inventory stored in a California fulfillment center — including stock Amazon moves there without your involvement — creates physical nexus immediately, regardless of your sales volume.
You lose access to the voluntary disclosure program’s benefits: the lookback extends from 3 years to 8 years, and penalties on top of back taxes and interest are much harder to get waived.
Yes — and you must. Once registered, the CDTFA expects a return for every assigned period, even when no tax is due. Missing a zero return still triggers notices and penalties.
Yes. Commenda monitors your exposure, registers you with the CDTFA, calculates the right rate on every transaction, and files each return on the assigned schedule. Book a call to see it on your own data.
* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.
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