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Vertexis Nexus

California sales tax nexus, thresholds and filing

California sets its economic nexus threshold at $500,000 in sales into the state. The CDTFA administers the tax, and the combined rate you charge depends on the buyer's district.

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California at a glance
Threshold
$500,000
Marketplace facilitator
Facilitator collects on its orders
Vertexis Nexus
Tracking, filing and remittance

California rules

  1. 01

    Economic threshold

    $500,000 in sales of tangible personal property delivered into California. Marketplace sales count toward the total, which is why Amazon-heavy sellers cross it sooner than their direct sales suggest.

  2. 02

    Physical nexus

    Inventory in a California fulfillment center, employees or contractors working in the state, and trade show activity can each create nexus on their own, regardless of sales volume.

  3. 03

    Marketplace facilitators

    Facilitators collect and remit tax on the orders they process. You still report those sales as marketplace sales on your return so gross sales reconcile with your 1099-K.

  4. 04

    District taxes

    On top of the statewide rate, California has more than 100 overlapping local district tax jurisdictions. Vertexis Nexus prices each order at the rooftop address and prepares the district breakdown the CDTFA asks for.

Common questions.

Still unsure? A SALT specialist can walk through your exposure on a call: +91 80 4123 0713

When do I need to register in California?

Once your sales into California reach the threshold, or earlier if you have a physical presence there. Vertexis Nexus alerts you at 75%, 90% and 100%.

How does Vertexis Nexus file in California?

Returns are prepared from your ledger, submitted electronically and the payment is scheduled ahead of the deadline.

What are the steps to file in California?

Register for a seller's permit with the CDTFA. Collect tax at the rate for the delivery address. File returns electronically on the schedule the CDTFA assigns you. Report marketplace sales on the marketplace deduction schedule.

Find out which states you owe sales tax in today.

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