California seller's permit: who needs one and how to apply

What a California seller's permit is

A California seller's permit is a state sales tax registration issued by the CDTFA. The CDTFA describes it as a state license that allows you to sell items at the wholesale or retail level and to issue resale certificates to suppliers. It is sometimes incorrectly called a resale number or resale permit, but those names all mean the same registration.

The rule covers individuals as well as corporations, partnerships and limited liability companies, and both wholesalers and retailers must apply. The table sets out the main rules, law checked on 3 Oct 2026.

Who needs a California seller's permit

The CDTFA ties the permit to two questions: are you engaged in business in California, and do you sell taxable goods. You are engaged in business if, for example, you have an office, sales room, warehouse or other place of business in California, even a temporary one. Taxable goods are tangible personal property, and the CDTFA gives furniture, giftware, toys, antiques and clothing as examples.

The number of sales matters too. The CDTFA generally requires a permit once you make three or more sales of taxable items in a 12-month period, while a person who makes no more than two sales in a 12-month period generally does not need one. For garage sales, you need a permit if you hold more than two garage sales within a 12-month period.

These cases come up most often for small sellers:

• Makers and crafters: you are required to have a permit when selling new or handcrafted items, or used items bought to resell, even temporarily.
• Custom work: the total charge for an item made for a specific customer, including labor, is taxable, while labor for repairs is not taxable.
• Food sellers: a seller of only cold food, not hot prepared, generally makes nontaxable sales and does not need a seller's permit.

Other registrations are separate. The CDTFA tells sellers to check whether they must also register with the Franchise Tax Board or the Employment Development Department, and says a seller's permit is not a business license.

Online and marketplace sellers

Since October 1, 2019, under California's Marketplace Facilitator Act, a marketplace facilitator is the seller and retailer responsible for paying sales tax or collecting and paying use tax on the retail sales it facilitates for marketplace sellers, when it is registered or required to be registered with the CDTFA as a seller or retailer.

If all your retail sales of merchandise are facilitated by a marketplace facilitator registered with the CDTFA, you are not required to register with the CDTFA for a seller's permit. The CDTFA says to contact the marketplace operator to find out whether it is a marketplace facilitator. Keep documentation showing the marketplace facilitator is responsible for collecting and paying the tax, and also the marketplace facilitator's permit or account number.

Selling outside a marketplace changes this. A marketplace seller is generally required to register if it makes direct sales of tangible merchandise to California customers that are not facilitated through a marketplace, such as sales through your own website. On auction sites, you must hold a seller's permit and report the tax if the online auction house is not a marketplace facilitator. Once registered, report your total sales on each return, including sales facilitated through a marketplace, and claim a deduction as "other" for sales facilitated by marketplace facilitators.

Where your stock sits also counts. The CDTFA says retailers that store inventory in California are generally engaged in business here and required to register, and this includes inventory at a California fulfillment center run by a third party.

Sellers based outside California have a separate test: register with the CDTFA if, in the preceding or current calendar year, you make more than $500,000 in combined sales of goods for delivery in California, counting related businesses. The total includes your own sales, sales of related persons and sales made through a marketplace facilitator's marketplace.

What a California seller's permit costs

The CDTFA charges no fee for a seller's permit, and the online registration system is free to use, though some permits may require a fee or deposit. The cost to plan for is a possible security deposit: the CDTFA may require a security deposit to cover any unpaid taxes owed if the business later closes, and the amount is set at the time you apply.

The tax itself is owed on each sale: the CDTFA says you must report and pay sales tax on each taxable sale, and that you may collect from your customer an amount equal to the tax you will owe. The statewide rate is 7.25%, and in most areas of California, local jurisdictions have added district taxes that increase the tax owed by a seller. Each district rate ranges from 0.10% to 2.00%, and some areas may have more than one district tax in effect, so the rate you report and pay varies depending on where you do business.

How to apply for a California seller's permit

You can apply online through the CDTFA's registration system at cdtfa.ca.gov. When you register, you answer questions about your business activities and the system identifies the permits and licenses you need.

1. Gather your identification

   Have ready a valid form of identification, such as a driver's license, city ID card or military ID, and a Social Security Number (SSN) or Individual Taxpayer ID (ITIN). A partnership, corporation, LLC or other entity also needs a federal employer identification number (FEIN), and corporations, LLCs and limited or limited liability partnerships need a California Secretary of State entity number.

2. Describe what you sell

   The application asks for projected monthly sales, projected monthly taxable sales and the products you will sell. It also asks for an email address, supplier names and addresses, personal references and your bookkeeper's contact details if you have one.

3. Finish the application in time

   the registration process saves your information at each step, so you can quit and continue later, but partially completed applications are deleted after 30 days.

4. Track the application

   After you submit, you can view the status of your application online and get email updates on it.

5. Display the permit

   When the permit is issued, prominently display it at your place of business. If you have more than one place of business, you may need a separate permit for each location on different premises.

California temporary seller's permit for craft fairs and pop-ups

A California temporary seller's permit is for individuals with no permanent place of business, and it covers a selling period of 90 days or less at one location, which fits a one-off craft fair, holiday pop-up or festival booth. In general, sellers at swap meets, flea markets and special events that make retail sales are required to obtain a seller's permit.

The temporary permit is free, and the registration process is the same as for a permanent seller's permit. You can apply up to 90 days before your business start date, and you must give a valid start and end date for each temporary sales location. These rules apply once you have it:

• Several events: you can list several locations on one temporary permit, as long as they operate within the same 90-day period.
• Events added later: you may not add a new sales location to an existing temporary seller's permit, so a later event needs a new application.
• At the booth: print a temporary seller's permit for each location and keep it on show, because sellers making taxable sales must display their seller's permits.
• Event paperwork: you need to provide specific information to the event operator, for example on form CDTFA-410-D. Under CDTFA rules, event operators may not rent space to sellers until they have verified that each holds a valid seller's permit.
• Tax return: file and pay on or before the last day of the month after the temporary sales location closes.
• Fairgrounds: separately state the amount of sales made on a state-designated fairground on your return; no additional tax or fee is due on these sales.

If you already hold a regular seller's permit and also sell at events, register a sub-permit for each temporary location instead of a separate temporary seller's permit.

After you get the permit

The CDTFA assigns each permit holder a reporting basis: quarterly, quarterly prepay, monthly, yearly or fiscal yearly. Whatever the basis, file on time, even if you cannot pay. Keep your tax records for at least four years, and tell the CDTFA about changes in ownership, address or contact information, and when you close your business.

The permit is valid only as long as you are actively engaged in business as a seller. When you stop selling, return the permit to the CDTFA for cancellation. The CDTFA says that, in general, you may be audited in three-year intervals, or when you close out your permit.

The permit lets you issue resale certificates to suppliers, so use them with care: issuing a resale certificate when you do not intend to resell the merchandise is a misdemeanor.

Where Nation fits

Questions about the California seller's permit