You need a California seller's permit if you sell or lease goods in California, even for a short time, and the California Department of Tax and Fee Administration (CDTFA) issues it for free as of October 2026. The catch is that the CDTFA may ask for a security deposit to cover tax you might owe later, and it sets that amount when you apply.
A seller's permit is the state's way of making sure sales tax on goods reaches the right place. This page is built from the CDTFA's own Publication 107, its seller's permit FAQ, its temporary sellers page and its October 2026 rate table, read in October 2026. If you sell online, at markets or from a shop, the same rules reach you.
The permit in one table
| Question | CDTFA answer (as of October 2026) |
|---|---|
| Who issues it | California Department of Tax and Fee Administration |
| Fee to apply | None |
| Security deposit | May be required, amount set when you apply |
| Temporary permit | For sales at one location for 90 days or less |
| Occasional sales | No permit for two or fewer sales in a 12-month period |
| How to apply | Free online registration, or in person at a CDTFA office |
Who has to hold one
Publication 107 says that when you sell or lease merchandise, vehicles or other tangible items in California, even temporarily, you're generally required to register and pay sales tax on your taxable sales. That covers sales made through online auction sites and classified ad sites too. A shop, a market stall, a warehouse and a sales representative working in the state can all count as being engaged in business in California.
Services on their own usually don't need a permit. The FAQ draws a sharp line, though. If your labour creates a new item, such as a ring made for one customer, the whole charge is taxable, labour included. Repairing an existing item is a different case and the repair labour isn't taxable.
The two-sale rule for occasional sellers
Here's the detail most guides skip. The CDTFA treats an occasional sale as one where you make no more than two sales in a 12-month period. So a single garage sale doesn't need a permit, but the temporary sellers page says more than two garage sales within 12 months does. Three craft fairs in a year with no permit is exactly the pattern that catches hobby sellers out.
Seller's permit versus resale certificate
People often call a seller's permit a resale number, and the CDTFA says that's wrong. The permit is a state licence that lets you sell. Once you hold it, you can give your suppliers a resale certificate so you don't pay tax on stock you'll resell. My guide to resale certificates explains how that works in other big states.
Publication 107 is blunt about misuse. Getting a permit only to issue resale certificates, or using one to buy things you'll use yourself, is against the law, and issuing a resale certificate when you don't intend to resell is a misdemeanour.
How to apply, step by step
- Go to the CDTFA website and choose Register a New Business Activity under Register for a Permit.
- Have your business details ready, including bank account details and estimated income.
- Add details for partners, corporate officers or LLC managers and members, who'll be asked for some of the same information.
- List every business location, because separate premises may each need a permit or a consolidated permit.
- If you bought an existing business, give the previous owner's name and permit number, and request a tax clearance in writing 60 days before the purchase.
- Display the permit at your place of business once it's issued.
The CDTFA's customer service line is 1-800-400-7115, open Monday to Friday from 7:30 a.m. to 5:00 p.m. Pacific time, if you get stuck.
Temporary permits for pop-ups and seasonal stands
If you'll sell at one location for less than 90 days, the CDTFA says you're a temporary seller and need a temporary seller's permit for each temporary location. Christmas tree lots and firework stands are the classic cases. If you already hold a permanent permit, you don't need a separate temporary one for a short event, though you'll still report those sales.
What sales tax you'll charge
The permit tells the CDTFA you'll collect tax, and the rate depends on where the sale happens. In the CDTFA's table effective October 1, 2026, Alpine County sits at 7.250%, Adelanto at 7.750% and Calabasas at 11.250%. Check the city and county table for every location you sell from, because neighbouring towns can differ by a full point or more.
Mistakes California sellers make
- Waiting until the first big order, when the duty starts with the first regular sales.
- Assuming online-only sales are exempt, when Publication 107 covers sales through auction and classified sites.
- Running a fourth or fifth market stall in a year without a permit.
- Using a resale certificate to buy office supplies or equipment for your own use.
- Keeping the permit after closing. The CDTFA says the permit is only valid while you're actively selling and should be returned for cancellation.
- Forgetting to update the CDTFA when your address changes.
Some of what you give the CDTFA is public. The FAQ notes that the information on your seller's permit and your business closeout date can be disclosed. If you're also forming a company, my guide to starting an LLC covers the paperwork that comes before the permit.
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My verdict
A California seller's permit costs nothing to get, so the real risk is not getting one. If you sell goods more than twice a year, register before you start, budget for a possible security deposit and check the local tax rate for each place you sell. It's one of the simplest compliance jobs in California, and skipping it ranks among the most expensive.
Frequently asked questions
Is a California seller's permit free?
Yes. The CDTFA charges no fee for a seller's permit as of October 2026, but it may require a security deposit set when you apply.
Who needs a seller's permit in California?
Anyone who sells or leases tangible goods in California, even temporarily, generally needs one, including sellers on online auction and classified sites.
Do I need a seller's permit for a garage sale?
Not for one or two. The CDTFA says more than two garage sales in a 12-month period means you need a permit.
What is a temporary seller's permit?
It's for sales at one location for 90 days or less, such as a Christmas tree lot or firework stand.
Is a seller's permit the same as a resale certificate?
No. The permit lets you sell, and holding it lets you issue resale certificates to suppliers for stock you'll resell.
How do I apply for a California seller's permit?
Register online through the CDTFA website under Register a New Business Activity, or apply in person at a CDTFA office.
Can I keep my seller's permit after I close my business?
No. The CDTFA says the permit is only valid while you're actively selling and should be returned for cancellation.
Do I need a separate permit for each location?
You may. The CDTFA says each separate place of business may need its own permit, though a consolidated permit is sometimes possible.
