Taxes · California
The California seller’s permit, step by step
Who needs one, how to get it free from the CDTFA, what to charge in the Sacramento region and how to stay out of trouble at filing time.
A california seller’s permit is the free registration from the California Department of Tax and Fee Administration (CDTFA) that lets you sell taxable goods in the state and requires you to report and pay sales tax on them. If you open a shop, sell at markets, run an online store or wholesale products from Sacramento, this permit is usually the first tax account you need, and it is simpler to get than most owners expect.
This guide follows the CDTFA’s own publications, including Publication 73, “Your California Seller’s Permit” (October 2026), and the tax rate table effective Oct. 1, 2026. Tax rules have exceptions; for your situation, call the CDTFA Customer Service Center at 1-800-400-7115 or ask a tax professional.
Who needs a California seller’s permit?
According to the CDTFA, you must hold a seller’s permit if you are engaged in business in California and intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail. Individuals, partnerships, corporations and LLCs all qualify, and both wholesalers and retailers must apply.
- Physical presence. You have an office, sales room, warehouse or other place of business in California, even a temporary one.
- People working for you. A salesperson, agent or independent contractor sells, delivers, installs or takes orders in California on your behalf.
- Out-of-state sellers. Publication 73 also counts sellers whose total combined sales of tangible personal property in California, with related persons, exceed $500,000 in the preceding or current calendar year.
- Seasonal and one-time sellers. Christmas tree lots, rummage sales and similar short operations need a temporary seller’s permit, normally issued for no longer than 90 days at one location.
What counts as taxable
In general, retail sales of physical goods are taxable in California: furniture, clothing, toys, antiques and hot prepared food are examples the CDTFA lists. Labor can be taxable when it creates a new product, such as making a ring for a customer. Repair labor is not taxable, and installation labor generally is not, if it is listed separately on the bill.
The CDTFA says it plainly: a seller’s permit does not replace your city or county business license. In Sacramento you will usually need both. See our Sacramento business license guide.
How to apply: free, online and often the same day
There is no charge for a California seller’s permit. The CDTFA may ask for a security deposit in some cases, such as when the law requires one, when a permit has been revoked or when a business has a history of nonpayment; the amount is set when you apply. Publication 107 says the CDTFA may be able to issue your permit the same day.
Registering with the CDTFA
- Gather your informationSocial Security number (corporate officers excluded), driver license or state ID, business and contact email, your federal EIN if you have one, owner and officer details, supplier names, bank details and estimated sales.
- Know your business codesHave your North American Industry Classification System (NAICS) code and a description of what you sell.
- Register onlineOn cdtfa.ca.gov, choose Register Online under Register for a Permit, then Register a New Business Activity. Help is also available in CDTFA offices.
- List every locationYou may need a separate permit for each address, though a consolidated permit for several locations is often possible.
- Display and fileNote your filing basis and first due date, and post the reimbursement notice if your prices include tax.
If you do not have an EIN yet, our EIN guide shows how to get one from the IRS for free, and our California business structure guide covers the LLC and corporation filings that usually come first.
Sales tax rates in the Sacramento region
California’s statewide base rate is 7.25%. Most areas add district taxes of 0.10% to 2.00%, and some have more than one, so the rate you charge depends on where the sale takes place. These are the CDTFA rates effective Oct. 1, 2026:
Sales and use tax rates, effective Oct. 1, 2026
Source: CDTFA, California City and County Sales and Use Tax Rates, effective Oct. 1, 2026. Rates change; look up the exact rate by address on cdtfa.ca.gov.
Sales tax on one sale in the City of Sacramento
Illustrative example using the City of Sacramento rate effective Oct. 1, 2026.
Collecting tax from customers
Legally, the sales tax is owed by you, the seller. You may pass it on to customers as “sales tax reimbursement” by listing it separately on receipts, posting a visible sign, or including it in the sales agreement. If your prices already include tax, CDTFA says you must tell buyers, for example with the statement “All prices of taxable items include sales tax reimbursement computed to the nearest mill.” If you collect too much, return it to the customer or pay it to the CDTFA.
Shipping and delivery charges
When you ship through a common carrier, the U.S. Postal Service or an independent contractor, delivery charges are not taxable if they are listed separately and do not exceed your actual cost. In CDTFA’s example, a $750 refrigerator with a separate $50 delivery charge is taxed on $750; a single $800 price is taxed on all $800.
Filing returns and paying the tax
When the CDTFA issues your permit, it assigns a reporting basis: monthly, quarterly, quarterly prepay, fiscal annual or annual. Each return and payment is due by the last day of the month after the period ends; for a period ending June 30, that is July 31. A due date on a weekend or holiday moves to the next business day.
- File even with zero sales. CDTFA requires a return for every period, even if you owe nothing.
- Late means interest and penalties. Filing late is penalized even if you paid on time.
- Need more time? CDTFA may grant up to one month in limited circumstances; submit an extension request if you cannot file on time.
- Pay online. After filing online, you can pay directly from your bank account, or request a payment plan through your online services profile.
Sales tax is only one of your state obligations. Our California small business taxes guide puts it next to income, payroll and franchise taxes.
Resale certificates: buying inventory without paying tax
When you buy products you will resell, you can give your supplier a resale certificate instead of paying sales tax; the tax is collected when you sell to the final customer. CDTFA does not require a specific form, but offers CDTFA-230, the General Resale Certificate. One certificate on file with a vendor can cover repeat purchases.
Misuse is costly. If you knowingly use a resale certificate for items you will not resell, CDTFA can charge the tax plus interest, revoke your permit and add a penalty of 10% of the tax or $500, whichever is greater, for each purchase, plus a 25% penalty for fraud. Issuing one to evade tax is a misdemeanor punishable by a $1,000 to $5,000 fine, up to one year in county jail, or both.
Records and audits
Keep required sales and use tax records for at least four years, and longer if you are being audited or have a dispute or refund claim open. Records include sales and purchase invoices, resale certificates you accept, exempt sales and deductions on your returns. When you sell or close the business, your permit is no longer valid: notify the CDTFA so it can be closed out. Selling online? Our Etsy selling guide covers the platform side.
Common mistakes
- Charging the wrong rate. Use the rate for the sale location, not a single statewide number.
- Skipping zero returns. No sales still means filing a return on time.
- Treating the permit as a business license. Sacramento-area cities require their own license.
- Using a resale certificate for supplies. Items you use yourself are not for resale.
- Throwing records away early. Keep at least four years of sales tax records.
Key terms
- Seller’s permit: CDTFA registration that allows a business to sell taxable goods in California and report sales tax.
- CDTFA: the California Department of Tax and Fee Administration, which runs sales and use tax.
- District tax: a local add-on of 0.10% to 2.00% on top of the 7.25% statewide base rate.
- Resale certificate: a document a buyer gives a seller to buy goods for resale without paying sales tax.
- Use tax: tax owed on taxable items bought without paying California sales tax, such as some out-of-state purchases.
The bottom line: a California seller’s permit is free, quick to get online and required for almost any business that sells physical goods in the state. Register before your first sale, charge the rate for each sale location, which is 8.75% in the City of Sacramento as of Oct. 1, 2026, file every return on time even with no sales, use resale certificates only for inventory, and keep four years of records.
Free help in the Sacramento region
You do not have to work through these decisions alone. SCORE Sacramento pairs owners with volunteer mentors, many of them retired executives, bankers and accountants, at no cost. The Sacramento Valley Small Business Development Center offers free one-on-one advising on financing, budgeting and financial statements. The SBA’s Sacramento District Office can explain loan programs and connect you with lenders, and community lenders such as California Capital and Opening Doors serve owners who need smaller loans or extra support. Browse our Business Resources and the free business help guide for more.
Key takeaways
- A California seller’s permit is free from the CDTFA; a security deposit may be required in some cases.
- Retailers and wholesalers that sell taxable goods in California generally need one.
- The statewide base rate is 7.25%; the City of Sacramento rate is 8.75% as of Oct. 1, 2026.
- Returns are due the last day of the month after each period, even with zero sales.
- Keep sales tax records for at least four years and use resale certificates only for inventory.
Frequently asked questions
How much does a California seller’s permit cost?
Nothing. The CDTFA charges no fee for a seller’s permit, but it may require a security deposit in some cases, such as when the law requires one or a business has a history of nonpayment.
Who needs a seller’s permit in California?
Anyone engaged in business in California who intends to sell or lease tangible personal property that would ordinarily be subject to sales tax at retail, including wholesalers, retailers and many out-of-state sellers.
How long does it take to get a seller’s permit?
You can register online with the CDTFA, and its Publication 107 says it may be able to issue your permit the same day.
What is the sales tax rate in Sacramento?
As of Oct. 1, 2026, the CDTFA lists 8.75 percent for the City of Sacramento and 7.75 percent for unincorporated Sacramento County. The statewide base rate is 7.25 percent.
Do I need a seller’s permit for a craft fair or pop-up?
If you do not already hold a permit, CDTFA says you must apply for a temporary seller’s permit for temporary selling, normally issued for no longer than 90 days at one location.
Sources
- CDTFA: Obtaining a Seller’s Permit (frequently asked questions)
- CDTFA Publication 107: Applying for a Seller’s Permit
- CDTFA Publication 73: Your California Seller’s Permit (October 2026)
- CDTFA: California City and County Sales and Use Tax Rates (effective Oct. 1, 2026)
- CDTFA: Sales and Use Tax Rates (statewide rate and district taxes)
Keep reading on Inksight
- Business Credit vs. Personal Credit: What Every Small Business Owner Should Know
- How to Choose a Business Structure in California: Sole Proprietorship, LLC, S Corp or C Corp
- Business Banking 101: How to Choose and Open a Business Bank Account
- Small Business Funding Options: Loans, Grants and Investors
- Business Resources: all guides →
