Shopify Calculating California Sales Tax Incorrectly?

New Member
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I'm in the same boat as you. Have you found a solution for this issue yet?

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New Member
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This might help out some of you, since I just got off the phone with California sales tax representative.

 

If you:

- have no physical presence in California (usually applies to remote sellers)

- make less than $500,000 in (online) sales from customers located in California

 

Then you only charge flat-rate 7.25% sales tax to CA customers.

 

But if you start making $500k or more in California, then you're considered to be "heavily engaged" in doing business in California so you have to charge district sales tax (meaning: state + county + city) even if you don't have any physical presence there.

 

Just my 2 cents.

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