California economic nexus threshold
You likely have economic nexus in California once your gross sales into the state reach $500,000 in the current or previous calendar year. California has no transaction-count threshold.
- Revenue threshold
- $500,000
- Transactions
- None
- Logic
- Revenue only
- Measured over
- current or previous calendar year
Check your California sales
How California’s threshold works
If you sell into Californiawithout a physical presence there, you may still be required to register for, collect, and remit sales tax once your activity crosses the state’s economic-nexus threshold. California measures this over the current or previous calendar year.
California has no transaction-count threshold: only your gross revenue into the state matters.
Note: $500k threshold (AB 147); transaction prong removed Apr 25, 2019.
What counts toward the threshold
California generally counts your gross sales into the state, typically including taxable and many exempt or wholesale sales, not just your profit. Sales made through a marketplace that already collects tax for you may be counted differently; this checker measures your direct sales.
What to do if you’ve crossed it
- Register for a sales-tax permit with the California CDTFA.
- Start collecting California sales tax at the correct rate.
- File returns and remit on the state’s schedule.
- Consider a sales-tax professional or automation if you’re near the line in several states.
Deadlines and rates vary by state, so confirm the specifics before you act.
California sales tax nexus FAQ
- Do I owe sales tax in California?
- You likely have economic nexus in California once your gross sales into the state reach $500,000 in the current or previous calendar year. California has no transaction-count threshold. If you have crossed it, you may need to register, collect, and remit sales tax. This is general information, not tax advice.
- What is California's economic nexus threshold?
- $500,000 in gross sales into California, measured over the current or previous calendar year. California has no transaction-count threshold.
- Does California count the number of transactions?
- No. California has no transaction-count threshold; only your gross revenue into the state matters.
- What if I only sell through a marketplace like Amazon or Etsy?
- Marketplace facilitators generally collect and remit sales tax on sales made through their platform, which can change who is responsible. This tool covers economic nexus from your direct sales; confirm marketplace-facilitated sales separately.
Selling into multiple states? Check them all at once.
Open the multi-state calculatorThis tool provides general information, not tax or legal advice. Economic-nexus rules change and vary by state; verify your obligations with each state’s Department of Revenue or a qualified tax professional before acting.
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