sales tax · 2026
California sales tax registration threshold
Gross sales of tangible personal property into California (no transaction-count test).
- Measured over
- Preceding or current calendar year
- On crossing
- Register for California sales tax
What is the California sales tax registration threshold?
The California sales tax registration threshold is $500,000, measured over the preceding or current calendar year. Cross it and you must register for California sales tax with the California Department of Revenue. You then charge sales tax on sales to customers in California.
📅 Changing on 1 January 2027
California starts taxing prewritten software and SaaS on 1 January 2027 under SB 122, signed July 2026. Two things change at once: hosted software becomes taxable in the state, and it starts counting toward the $500,000 threshold, which until then counts sales of tangible personal property only. A software seller who has been invisible to California - and many have, at any revenue - becomes visible on that date, with the threshold measured on the preceding or current calendar year. Custom software stays exempt.
Do marketplace sales count toward this threshold?
Yes. California (sales tax) counts sales made through a marketplace facilitator toward the underlying seller's own threshold. The facilitator collects and remits the tax on those sales, so you are not paying it twice - but the volume still moves you toward the figure on this page, and you can be required to register on the strength of sales somebody else collected on.
Sales through a merchant of record such as Paddle, Polar or Lemon Squeezy are different again: those are the platform's own sales and count toward no threshold anywhere.
Source: Sales Tax Institute, Economic Nexus State Guide, read 2026-08-07.
What's different about California
California's $500,000 threshold counts sales of tangible personal property. District (local) taxes apply on top of the 7.25% state rate, and you register for those through the same CDTFA permit.
When do you need to register?
Economic nexus: once your sales into the state pass its threshold (commonly $100k or 200 transactions), you must register and collect that state's sales tax.
Deadline: Register before your next sale - many states apply nexus prospectively from the crossing.
How to register in California
- 1Register for a sales-tax permit with the state's Department of Revenue.
- 2Enable tax collection for that state in your checkout / Stripe Tax.
- 3Remit collected tax on the state's filing schedule.
- 4If you're crossing several states, consider a filing service (TaxJar / Avalara).
California Department of Revenue - official guidance Sales Tax Institute - Economic Nexus
Don't track California by hand.
TaxesRadar reads your Stripe & Paddle sales and warns you the moment you approach this threshold - across every country and US state at once.
California sales tax threshold - FAQ
What is the sales tax registration threshold in California?
$500,000, measured over preceding or current calendar year. California has no transaction-count test, so volume of orders alone never triggers registration.
When do I need to register for sales tax in California?
Economic nexus: once your sales into the state pass its threshold (commonly $100k or 200 transactions), you must register and collect that state's sales tax. Register before your next sale - many states apply nexus prospectively from the crossing.
Does TaxesRadar file my sales tax for me?
No. TaxesRadar watches your Stripe and Paddle sales, warns you before you cross this threshold, and gives you the registration checklist. Filing itself is handed to specialist partners.
Comparing tools for the California threshold
TaxesRadar vs TaxJarTaxJar files US state returns. Where it stops is the border - see what each one covers, side by side.More on the California sales tax threshold
- TaxJar raised its prices. Work out which half you were paying forTaxJar now publishes 39 USD a month for Starter and 50 to 55 USD a filing. Here is how to work out whether you were paying for filing or for watching.
- We counted the wrong sales in 42 statesOur engine measured US economic nexus on taxable sales in every state. Only six do. The error, the fix, and how to tell which one applies to you.
- California starts taxing SaaS on 1 January 2027California SaaS sales tax starts 1 January 2027 under SB 122. Two things change at once: software becomes taxable, and it starts counting toward $500,000.
- US economic nexus: what actually triggers it, state by stateThe $100,000-or-200-transactions rule describes 17 of 48 US jurisdictions. Which test your states really apply, the window they measure over, and what counts.
- EU OSS registration vs US sales tax nexusEU OSS registration and US economic nexus solve the same problem in opposite ways. Here is how each threshold works and what a global seller has to watch.
Other sales tax thresholds
Guidance, not tax advice. Confirm the specifics for your situation with a qualified professional. Threshold shown for 2026; last verified 2026-07-27 against California Department of Revenue. Rules change - TaxesRadar keeps them current.