California Amazon Sales Tax
California enforces marketplace facilitator law since October 2019. Amazon collects sales tax on all California orders. CA has the highest state base rate at 7.25%.
Overview
California's marketplace facilitator law took effect October 1, 2019. California has the highest state base sales tax rate in the country at 7.25%, with local district taxes pushing the combined rate up to 10.75% in some areas. Amazon collects and remits sales tax on every California transaction automatically.
California was one of the most aggressive pre-Wayfair states in pursuing FBA sellers for sales tax collection. There were well-documented cases of California pursuing back-tax claims against sellers with FBA inventory in California fulfillment centers. The marketplace facilitator law largely resolved this for ongoing sales, but some sellers received back-tax notices for the pre-MPF period that required negotiation.
For current and new FBA sellers, the situation is straightforward: Amazon collects on your behalf, you have no California registration obligation for Amazon-only sales. If you have non-Amazon channels with California sales above the economic nexus threshold ($500,000/year), you would need to register with the California Department of Tax and Fee Administration.
What FBA sellers still need to know
No CDTFA registration for Amazon-only sellers. Direct-to-consumer sales above $500K/year require state registration. Pre-2019 FBA sellers may want to verify they have no outstanding back-tax notices.
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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