Collect tax in California
Learn how to use Stripe Tax to calculate, collect, and report tax in California.
When to register for tax collection
See Thresholds to get insights about your potential tax registration obligations in California. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.
Remote sellers in California who exceed the 500,000 USD gross sales must register for a California sales tax permit with the CDTFA, collect sales tax on sales that ship to California, and remit the sales tax to the state.
Threshold: 500,000 USD
Period: Previous or current year
Included transactions: Gross sales of tangible personal property
Effective date: April 26, 2019
Register to collect tax
Read more about registering for sales tax in the US in our guide. You can also use Stripe to register on your behalf.
Register for sales tax in California at the tax authority:
After you’ve registered to collect tax in California, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in California.
Learn how to add your registration in the Dashboard.
How we calculate taxes
If your origin address is in the US and differs from your customer’s state, Stripe always calculates tax based on your customer’s location.
If your customer is in California and your origin address is also in California, Stripe applies tax based on your origin address, depending on the type of product or service you sell.
Report and file your taxes
Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports.
Exports
The tax transaction data export provides a comprehensive and aggregated view of transactions by location, including a breakdown of individual tax amounts. Learn more about tax reporting exports.
Location reports
Location reports offer a summary of transaction and refund data for specific US locations and align with California filing requirements. You have the option to report on an annual, fiscal year, semiannual, quarterly, or monthly basis.
Filing
You are responsible for filing and remitting your taxes to California. Stripe doesn’t file taxes on your behalf. For automating filing in the US, we recommend using TaxJar’s AutoFile solution.