2026 tax year · California
Marketplace seller taxes in California
Etsy, eBay, Shopify and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is your costs, in California that gap is worth $6,685 in tax.
Take a driver who grossed $45,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the marketplace seller page $26,775 comes off and $18,225 is left as taxable profit. That profit is what California and the IRS charge against.
What that leaves you owing in California
California uses graduated 2026 income tax brackets topping out at 13.3%, across 10 brackets, on top of federal income tax and self-employment tax.
| Self-employment tax | $2,575 |
| Federal income tax | $67 |
| California income tax | $130 |
| Total tax | $2,773 |
| Effective rate on gross | 6.2% |
Earning more in California
A single filer taking the standard deduction, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | California tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time | $15,000 | $0 | $15,000 | $86 | $2,205 | 14.7% |
| Steady side income | $45,000 | $0 | $45,000 | $878 | $9,458 | 21.0% |
| Full-time | $72,000 | $0 | $72,000 | $2,539 | $17,343 | 24.1% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
California specifics that change the number
On the 2026 rate itself: CA SDI applies to SE income. 9 income tax brackets. Highest top rate in US.
California runs a state disability insurance program: 0.9%. CA SDI applies to self-employed who voluntarily elect coverage. Mandatory for W-2 employees.
California is a community property state. In community property states, income earned during marriage is generally owned equally by both spouses. This affects QJV eligibility, MFS filing strategies, and retirement account contribution rules.
Selling into and out of California
Income tax follows you: California taxes your profit wherever the buyer was. Sales tax does not. Marketplace facilitator laws make the platform collect and remit sales tax on your behalf in most states, which is why a seller can have customers in all fifty and still file only one income tax return. Selling off-platform is where that stops being true.
On $18,225 of profit, what the states around California would charge:
| State | Its tax | vs California |
|---|---|---|
| Nevada | No income tax | −$156 |
| Arizona | $456 | +$299 |
| Oregon | $866 | +$709 |
- Nevada has no income tax at all, so the same work done there costs $156 less in state tax than it does in California.
- Arizona would take $299 more, $456 against California's $156.
- Oregon would take $709 more, $866 against California's $156.
Marketplace seller tax questions in California
How much should a California seller set aside?
About 6.2% of gross on the $45,000 example, $2,773 across self-employment tax, federal income tax and $130 to California. Set aside from each payout rather than finding it in April.
Does the $45,000 on my 1099-NEC match what California taxes?
No. California taxes profit, not gross. After $26,775 of deductions the taxable figure is $18,225, so the California bill is $130 rather than what gross alone would suggest.