A California seller's permit is the registration the state's sales tax agency, the CDTFA, gives a business that sells goods in California which would be taxed at retail. The permit is free. The permit lets you add sales tax to your prices and send it to the state on a schedule the CDTFA sets when you register. If you sell taxable goods outside a registered marketplace, you very likely need one before your first sale.
The rest of this page covers who needs one and who does not, what it costs, when the returns fall due, and what a late return costs.
Who needs one, and who does not?
The CDTFA's own test has two parts: you are engaged in business in California, and you intend to sell or lease tangible personal property that would ordinarily be taxed if sold at retail. Tangible means things you can hold: candles, T-shirts, jewelry, baked goods. Both wholesalers and retailers must apply.
Two common groups do not need one:
- Marketplace-only sellers. If every retail sale you make goes through a marketplace that is registered with the CDTFA, the marketplace collects and pays the tax, and you are not required to register for a seller's permit. The rule has stood since October 1, 2019. The moment you also sell at a market, from your own site, or in person, you are back in.
- Businesses that sell only services and hand over nothing physical. Add a taxable product, a T-shirt or a candle, and the answer can change. Many foods sold to go are not taxable, so check your items with the CDTFA.
A third case is the short sale. If you sell only for a short stretch, a holiday market or a one-off sale, you apply for a temporary seller's permit. The CDTFA's temporary sellers page says it covers selling at one location for 90 days or less; its older Publication 73 still says 30 days. The CDTFA's general rule is that three or more taxable sales in twelve months need a permit of one kind or the other.
What does it cost?
The permit costs nothing. The CDTFA's words: "No. The permit is free." The agency may ask for a security deposit in some situations: when the law requires one, when a permit has been revoked before, or when there is a history of not paying.
The sales tax itself is owed by you, the seller, on your taxable sales. Most sellers add it to the price, hold it, and send it in. If you forget to charge it, you still owe it. The statewide base rate is 7.25%, and cities and counties add district taxes on top. In the City of Los Angeles the total is 10.25% as of October 2026, and some cities in the county are at 11%. Look up your exact rate by address on the CDTFA rate page.
When are the returns due?
When you register, the CDTFA tells you how often you file: monthly, quarterly, quarterly with prepayments, or yearly. Each return is due on the last day of the month after the period ends, and a return is due even for a period with no sales. For a quarterly filer that is April 30, July 31, October 31 and January 31. Prepayments, if the CDTFA puts you on them, have their own dates. Businesses with average taxable sales of $17,000 or more a month are moved to prepayments; the CDTFA tells you in writing if that is you.
| Filing basis | Return due |
|---|---|
| Monthly | the last day of the next month |
| Quarterly | April 30, July 31, October 31, January 31 |
| Yearly | the last day of the month after your year closes |
Dates that fall on a weekend or holiday move to the next business day.
What happens when it slips?
A late return or a late payment brings interest and a penalty. Paying in full but filing late still brings the late-filing penalty. If you stop selling, cancel the permit: it is valid only while you are actively selling, and a return is expected for every period you hold it.
Each rule is simple on its own. The filing date is the part owners miss.
Why this one is easy to miss
Owners miss this permit for three reasons, none of them the owner's fault. First, the permit is free, so it looks optional; the permit is required for anyone selling taxable goods outside a marketplace. Second, the marketplace rule changed on October 1, 2019, so older advice points the other way. Third, the CDTFA sets each seller's filing schedule at registration. Your schedule is in the letter the CDTFA sent when you registered, and in your online account.
The seller's permit is one item on the small business compliance list. For a California LLC, the item beside it is the $800 annual tax and its dates.
Where Khanna's comes in
If you want help reviewing your small business compliance, email us at daksh@khannasllc.com with your business and your city.
Common questions
I sell on Etsy. Do I need a seller's permit? Not if every sale goes through Etsy or another marketplace registered with the CDTFA. If you also sell at markets, from your own site, or in person, you likely do.
I only do one weekend market a year. A temporary seller's permit covers selling at one location for 90 days or less, under the CDTFA's temporary sellers page. Three or more taxable sales in twelve months is the CDTFA's general line for needing a permit. Ask the CDTFA whether your event needs one.
Is a seller's permit the same as a business license? No. The seller's permit comes from the state's sales tax agency and is about sales tax. The business license comes from your city. Outside a city, a county license may apply, and in Los Angeles County only to certain regulated activities. Many sellers need both, and they live on different calendars.
What is a resale certificate? The form you give a supplier so you do not pay sales tax on inventory you will resell. If you end up using those goods yourself, you owe use tax on them at that point.
General information for California sellers as of October 2026. Khanna's is not a law firm or an accounting firm, and this is not legal or tax advice. The main rules above link to the CDTFA pages and publications that state them. For your own situation, check with the CDTFA, a lawyer or a CPA.