California is both an origin-based (sales are taxed where the seller is located for state, city, and county taxes) and destination-based (sales are taxed where the buyer is located for district taxes) state.
Businesses may file online at the CDTFA website.
The state’s base sales tax rate is 7.25%. With additional local taxes, the combined total sales tax rate ranges from 7.25% to 10.25%.
Grocery-type food items are generally tax exempt, while prepared foods are taxed at the full rate.
Businesses establish a minimum tax connection to the state if any of the following apply:
Online activities that establish nexus in California include:
Find out more about nexus in California.
Your filing frequency will be determined based on expected amount of taxable annual sales.
Due dates are as follows:
New businesses must register online for a seller’s permit.
The interest rate based on the rate charged by the IRS plus 3 percent applies to unpaid or underpaid taxes. Interest is calculated on a per-month basis. One month’s interest is charged for each month or fraction of a month that a payment is late. For example, if a payment is three days late, a full month’s interest is due.
Penalties are charged on late returns as follows:
When you file a late return online, penalties and interest are automatically calculated.