--- title: "California marketplace facilitator law and 1099-K rules" description: "Under California's Marketplace Facilitator Act (Oct 1, 2019), registered marketplaces are the retailer; sellers using only them need no permit." canonical: https://resellerindex.com/tax/states/california/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / California # Selling on eBay, Poshmark or Etsy from California: sales tax and 1099-K rules Since October 1, 2019, under California's Marketplace Facilitator Act (Revenue and Taxation Code §§ 6040-6049.5), a registered marketplace facilitator is the retailer for the sales it facilitates and is responsible for the tax on them, and a seller whose California sales all go through registered facilitators isn't required to hold a seller's permit. For Form 1099-K, California's rules sit with the Franchise Tax Board, whose pages couldn't be read for this check, so no California rule is stated here; the federal test is over $20,000 in more than 200 transactions. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## California in short - **General sales tax:** Yes - **Marketplace facilitator law:** Yes: Cal. Rev. & Tax. Code §§ 6040-6049.5 (Marketplace Facilitator Act, AB 147, Stats. 2019, ch. 5), since Oct 1, 2019 - **When a marketplace must collect:** registration as a retailer if it has a physical presence in California or more than $500,000 in combined sales of tangible merchandise for delivery in California in the preceding or current calendar year, counting the sales it facilitates - **Form 1099-K:** No state rule stated on the pages checked ## Who collects the tax on a marketplace sale A marketplace facilitator that is registered, or required to register, with the CDTFA is the retailer for each retail sale of tangible personal property it facilitates for a marketplace seller (§ 6043), and is generally responsible for collecting, reporting and paying the tax on retail sales made through its marketplace for delivery to California customers. ### If you sell only through marketplaces The CDTFA says a marketplace seller, inside or outside California, is not required to hold a seller's permit or Certificate of Registration - Use Tax if all of its California retail sales are facilitated by registered marketplace facilitators. Section 6045 requires registration for sales made on the seller's own behalf and not facilitated through a registered facilitator, such as sales on the seller's own website. Registration, resale certificates and what changes when you also sell direct have their own page: [California: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/california/). The law: [Cal. Rev. & Tax. Code §§ 6040-6049.5 (Marketplace Facilitator Act, AB 147, Stats. 2019, ch. 5)](https://cdtfa.ca.gov/lawguides/vol1/sutl/sales-and-use-tax-law-chapter1-7-all.html), effective Oct 1, 2019. > "In general, marketplace sellers whose tangible merchandise is sold at retail exclusively through a marketplace owned, operated or controlled by a marketplace facilitator are not required to register with CDTFA" California Department of Tax and Fee Administration, [Tax Guide for Marketplace Facilitator Act](https://cdtfa.ca.gov/industry/MPFAct.htm), General Registration Requirements > "Yes, beginning October 1, 2019, you are not required to be registered as a retailer with us if all your sales of tangible merchandise are facilitated by marketplace facilitators who are the retailers for purposes of those sales." California Department of Tax and Fee Administration, [Tax Guide for Marketplace Facilitator Act](https://cdtfa.ca.gov/industry/MPFAct.htm), FAQ: Can I close my account with CDTFA? Sources: [Tax Guide for Marketplace Facilitator Act](https://cdtfa.ca.gov/industry/MPFAct.htm); [Sales and Use Tax Law, Chapter 1.7 (Marketplace Facilitator Act), §§ 6040-6049.5](https://cdtfa.ca.gov/lawguides/vol1/sutl/sales-and-use-tax-law-chapter1-7-all.html). ## California's sales tax The California Department of Tax and Fee Administration (CDTFA) gives the statewide sales and use tax rate as 7.25%, which includes 1.25% of local taxes. Voter-approved district taxes make the total higher in some areas. > "The current statewide sales and use tax rate is 7.25 percent, which includes 1.25 percent of local taxes (1.00 percent Local Jurisdiction and .25 percent Local Transportation Fund)." California Department of Tax and Fee Administration, [Tax Guide for Marketplace Facilitator Act](https://cdtfa.ca.gov/industry/MPFAct.htm), Local and District Taxes Sources: [Tax Guide for Marketplace Facilitator Act](https://cdtfa.ca.gov/industry/MPFAct.htm). ## Form 1099-K: California and the federal test California's Franchise Tax Board (FTB) handles income tax information returns, but its pages couldn't be read for this check on October 18 or 19, 2026, so no California 1099-K rule is stated here; for the FTB's own rules, see its information return pages or ask a tax professional. The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [Tax Guide for Marketplace Facilitator Act](https://cdtfa.ca.gov/industry/MPFAct.htm). ## Worked examples ### A $40 sale to a California buyer The marketplace, as the retailer under § 6043, handles the tax: at the 7.25% statewide rate that is $40 x 7.25% = $2.90, and a district tax where the buyer lives can make it more. If all your California sales go through registered facilitators, the CDTFA says you don't need a seller's permit. ### $550,000 on marketplaces plus $50,000 on your own site An out-of-state seller with no California inventory counts both channels for the $500,000 economic nexus test: $600,000 is over it. Because $50,000 of sales aren't facilitated, the CDTFA says the seller must register, report total sales, and deduct the facilitated sales as "other" on its return. ## Edge cases and details - Since January 1, 2022, a marketplace facilitator may also have to collect, report and pay fees on retail sales of certain items (AB 1402), on top of the sales and use tax. - A marketplace seller that is required to register reports its total sales, including facilitated sales, and claims a deduction as "other" for sales facilitated by marketplace facilitators, the CDTFA says. - Inventory stored in a third party's California warehouse or fulfillment center can count as your place of business if there is dedicated storage for your merchandise and it isn't commingled with other sellers' goods. - The CDTFA suggests asking each marketplace for documentation that it is registered and responsible for the tax, and verifying its permit or account number on the CDTFA's Verify a Permit, License, or Account page. ## What to do 1. Ask each marketplace you sell on for its statement that it is registered with the CDTFA and responsible for the tax on your sales, and note its permit or account number. 2. If you sell anywhere else (your own website, shows, a shop), read the CDTFA's general registration requirements in its Marketplace Facilitator Act guide. 3. For California income tax and any 1099-K questions, use the Franchise Tax Board's own pages or a tax professional. ## Common questions ### Do I need a California seller's permit if I only sell on marketplaces? Not if all your California sales are facilitated by marketplace facilitators that are registered with the CDTFA, according to its Marketplace Facilitator Act guide. Direct sales, such as through your own website, can require registration. ### Do marketplace sales count toward California's $500,000 threshold? Yes. The CDTFA says a marketplace seller includes its marketplace sales along with its direct sales when deciding whether it is engaged in business in California under the $500,000 test, even though it isn't the retailer for the marketplace sales. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [California: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/california/) - [Arkansas: sales tax and 1099-K rules](https://resellerindex.com/tax/states/arkansas/) - [Colorado: sales tax and 1099-K rules](https://resellerindex.com/tax/states/colorado/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes California's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - California Department of Tax and Fee Administration: [Tax Guide for Marketplace Facilitator Act](https://cdtfa.ca.gov/industry/MPFAct.htm); read Oct 19, 2026. October 1, 2019 start, registration rules for facilitators and sellers, $500,000 economic nexus, deductions, statewide 7.25% rate. - California Department of Tax and Fee Administration (law guide): [Sales and Use Tax Law, Chapter 1.7 (Marketplace Facilitator Act), §§ 6040-6049.5](https://cdtfa.ca.gov/lawguides/vol1/sutl/sales-and-use-tax-law-chapter1-7-all.html); read Oct 19, 2026. § 6043 facilitator is the retailer; § 6045 seller registration for non-facilitated sales; operative October 1, 2019. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. Both parts of the federal test counted for the calendar year. Subscribe: https://resellerindex.com/subscribe/ --- The Reseller Index Researched and drafted with AI assistance from each platform's and carrier's own published pages. 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