Seller's Permit: What It Is, Who Needs One and How to Get It

Quick answer: A seller's permit (also called a sales tax permit or certificate of authority) is a state registration that lets you sell taxable goods or services and collect sales tax. You usually need one before your first taxable sale. As of 2026 many states, including California, Texas and New York, list no fee to apply online, but rules and fees vary by state.

If you sell products, from handmade candles to car parts, the state expects you to collect sales tax from customers and pass it on. The seller's permit is how you register to do that. This guide explains who needs a seller's permit, how to get one, what it costs and how to show sales tax correctly on every invoice you create in our free invoice generator. For the mechanics of charging tax once you are registered, see our guide to sales tax on invoices in the US.

Note: This is general information, not tax advice. Sales tax rules, permit names and fees vary by state and sometimes by city. Check with your state's tax agency before you start selling.

What a seller's permit is

A seller's permit is your registration with a state's sales tax agency. It gives you an account number, authorizes you to collect sales tax and obliges you to file returns and pay over what you collect. It is not a general business licence, and it is not an income tax registration.

Different states use different names for the same idea:

State	Name of the registration	Agency	Fee to apply (as of 2026)
California	Seller's permit	California Department of Tax and Fee Administration (CDTFA)	Online registration described as free; a security deposit may be required for some applicants
Texas	Sales and use tax permit	Texas Comptroller of Public Accounts	No fee listed on the application page
New York	Certificate of Authority	NY Department of Taxation and Finance	No fee listed; register at least 20 days before starting
Other states	Sales tax licence, vendor's licence, transaction privilege tax licence and similar	State department of revenue	Varies by state

A handful of states (Alaska at state level, Delaware, Montana, New Hampshire and Oregon) have no statewide sales tax, although some Alaska localities levy their own.

Who needs a seller's permit

You generally need a sales tax permit if you sell or lease taxable tangible personal property in a state with a sales tax. The California Department of Tax and Fee Administration says anyone doing business in California who sells or leases tangible personal property that would ordinarily be subject to sales tax at retail must have a seller's permit and display it at their place of business. New York goes further, saying every person who sells taxable tangible personal property or taxable services must register, including people selling from home, temporary vendors and those who sell only once a year.

Common situations that require a permit:

• Retail shops and online stores selling taxable products.
• Craft fair, farmers' market and pop-up vendors (often a temporary permit).
• Wholesalers, who need a permit to accept resale certificates from buyers and issue their own.
• Service businesses in states that tax their services, such as certain repair, cleaning or data services.
• Remote sellers who exceed another state's economic nexus threshold; see sales tax nexus.

Buying an existing business does not transfer its permit. California's CDTFA states that a new owner needs a permit of their own.

Temporary seller's permits

If you sell at a single location for a short period, some states issue a temporary permit. In California, sellers operating from one location for 90 days or less apply for a temporary seller's permit rather than a regular one.

How to get a seller's permit step by step

1. Confirm your sales are taxable. Check whether your products, and any services, are taxable in your state.
2. Form your business and get an EIN if needed. Sole proprietors can often use an SSN; LLCs and partnerships usually use an EIN. See how to get an EIN.
3. Gather your information: legal name and any trade name, business address, owners' or officers' details, start date, expected sales, and a NAICS code describing your activity. The Texas Comptroller lists Social Security numbers for owners and officers, the Texas Secretary of State file number for entities and a NAICS code among the items to have ready.
4. Apply online with your state agency: CDTFA online registration in California, eSystems in Texas, New York Business Express in New York.
5. Answer the questions about your activity: locations, whether you sell online or at events, estimated monthly taxable sales.
6. Pay any fee or security deposit if your state requires one.
7. Receive your permit and account number. Texas says to allow two to three weeks; some states issue numbers instantly online.
8. Display the permit at your place of business if your state requires it, as California does.
9. Note your filing frequency (monthly, quarterly or annual) and set reminders.

Timing matters. New York's guidance on how to register for New York sales tax says to register at least 20 days before you begin business, and the state's maximum penalty for operating without a valid Certificate of Authority is $10,000.

How much a seller's permit costs

For many small businesses the permit itself is free. The CDTFA permits and licences page describes online registration as free, and the Texas Comptroller's sales and use tax permit application page lists no permit fee. Costs that may still apply:

• Security deposits: some states, including California for certain applicants, may require a deposit, refundable when you close the account less anything owed.
• State registration or licence fees in states that charge them.
• City or county licences: local business licences are separate from the state permit.
• Your time: regular returns, even when you owe nothing, are mandatory.

Because fees vary by state and change over time, confirm the current amount on your state agency's site before you apply.

After you register: collecting and filing

The permit creates ongoing duties:

• Charge the correct rate on taxable sales, including local add-ons. Our sales tax calculator and guide on how to calculate sales tax cover the arithmetic.
• Show tax separately on invoices and receipts. Customers, and auditors, need to see the taxable amount, the rate and the tax.
• Collect exemption and resale paperwork for tax-free sales; see our guide to the sales tax exemption certificate.
• File every return on time, including zero returns in periods with no sales.
• Keep records of all sales, invoices and exemption certificates.
• Update or close the permit when you move, change ownership or stop selling. If you close the business entirely, see how to dissolve an LLC.

Worked example: a sales tax invoice under your permit

A Texas furniture maker with a sales and use tax permit sells a custom table and two chairs to a local customer. In this example the combined state and local rate at the delivery address is 8.25%.

Line	Calculation	Amount
Dining table	1 x $800	$800.00
Chairs	2 x $200	$400.00
Subtotal	$800 + $400	$1,200.00
Discount (10%)	$1,200 x 10%	- $120.00
Taxable amount	$1,200 - $120	$1,080.00
Sales tax (8.25%)	$1,080 x 8.25%	$89.10
Shipping	Flat fee	$25.00
Total	$1,080 + $89.10 + $25	$1,194.10
Deposit paid	Amount paid field	- $500.00
Balance due	$1,194.10 - $500	$694.10

This matches how the US invoice generator calculates: discount first, tax on the discounted amount, then shipping added after tax, and the amount paid field produces the balance due. One caution: some states treat delivery charges on a taxable sale as taxable. Because the shipping field is added after tax, if your state taxes delivery, enter it as a normal line item instead so the tax applies to it. The $89.10 is money you hold for the state and report on your next return, not income.

Seller's permit vs related registrations

Registration	Purpose	Who issues it
Seller's permit / sales tax permit	Collect and remit sales tax	State tax agency
Resale certificate	Buy inventory tax-free for resale	You complete it and give it to suppliers
EIN	Federal tax ID for the business	IRS
Business licence	Permission to operate locally	City or county
DBA / trade name	Operate under a name other than the legal name	State or county; see what a DBA is

You may need all five. The permit number is often requested by wholesalers before they will sell to you tax-free on a resale certificate.

Do freelancers need a seller's permit?

Many freelancers do not, because most professional services such as writing, consulting or design are not taxable in a large number of states. But "many" is not "all". Some states tax specific services, and a freelancer who also sells physical products (printed artwork, photo prints, merchandise, equipment) usually needs a permit for those sales. Digital products are another grey area: some states tax downloads or software, others do not. Before you invoice, list everything you sell and check each item against your state's taxable list. If any of it is taxable, register before the first sale and charge tax only on the taxable lines.

Filing frequency and your first return

When your permit is issued, the agency assigns a filing frequency, usually based on your expected sales: larger sellers file monthly, smaller ones quarterly or annually. Each return reports total sales, deductible or exempt sales, taxable sales and the tax due, often broken down by local jurisdiction. Using the worked example above, that sale would add $1,080.00 of taxable sales and $89.10 of tax to the return for its period. Keep a running sales tax report from your invoices so the return is a matter of copying totals rather than reconstructing them. Set the money aside as you collect it, ideally in a separate account, so the payment is ready when the return is due.

Selling at markets, fairs and pop-ups

Event sellers are a common blind spot. Even if you sell only a few weekends a year, the state usually expects you to register, and some states issue temporary permits for this. Event organizers may also ask for your permit number before giving you a stall. Charge the rate that applies at the event's location, not your home address, and keep a simple record of each event's sales so you can report them correctly.

Selling in more than one state

A permit in your home state does not cover sales elsewhere. If you have physical presence in another state, such as a warehouse, employees or inventory, or you exceed that state's economic nexus threshold, you generally need to register there too. Marketplace facilitator laws often shift collection to platforms for sales made through them, so a seller who sells only through a marketplace may have fewer registrations than one who also runs a direct site. Our guide to e-commerce invoices for Shopify and WooCommerce covers how that affects your paperwork.

Common seller's permit mistakes

• Selling before registering. Even a single weekend market can require a temporary permit.
• Assuming services are exempt everywhere. Some states tax a wide range of services.
• Not filing zero returns. Missed returns trigger penalties even when no tax is due.
• Using one rate for every customer. Local rates differ; check the rate for each delivery address.
• Hiding the tax in the price. Show it as a separate line so the customer and the state can see it.
• Forgetting to close the permit when you stop selling, which keeps return obligations alive.
• Losing exemption paperwork. If an auditor asks why a sale had no tax and you cannot produce the customer's resale or exemption certificate, the state can assess the tax against you, plus interest. File each certificate with the invoice it supports.

Create sales tax invoices with your permit number

A seller's permit is usually free and quick to get, and having one before your first sale keeps you on the right side of your state's sales tax rules. Once you have it, make every invoice show the taxable amount, rate and tax clearly: use our free invoice generator with your sales tax permit number in the tax ID field, and choose a layout from our classic invoice template or the full invoice templates gallery. Your finished invoice downloads as a PDF, free and with no sign-up.