How to File and Pay California Sales Tax: A 2025 Guide for Small Businesses in Encinitas

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If you’re a small business owner in Encinitas, Cardiff-by-the-Sea, or anywhere in North County San Diego, California’s sales tax rules can feel overwhelming. From permits to due dates, the process isn’t always clear. That’s why we’ve put together this simple, step-by-step guide to help you file and pay your sales tax in 2025 — and avoid penalties along the way.

Step 1: Get a Seller’s Permit

Before collecting sales tax, you must register for a California Seller’s Permit through the CDTFA (California Department of Tax and Fee Administration). This applies to most businesses selling tangible goods, and in some cases, taxable services.

💡 Pro tip: You can register online for free and get your permit in minutes.

Step 2: Know Your Filing Frequency

Once registered, CDTFA assigns you a filing frequency based on your sales volume:

• Monthly – for high-volume sellers

• Quarterly – most common for small businesses

• Annually or Semi-Annually – for very low volume

Your sales tax return is due on the last day of the month following the reporting period. For example, Q1 2025 (Jan–Mar) is due by April 30, 2025.

Step 3: Calculate What You Owe

You must calculate:

• Total taxable sales

• Use tax (for items purchased without CA tax, but used in CA)

You can calculate manually, use a spreadsheet, or use accounting software like QuickBooks, Avalara, or TaxJar.

⚠️ Don’t forget: Some areas in San Diego County have district taxes on top of the base 7.25%. Use CDTFA’s rate lookup tool to be sure.

Step 4: File and Pay Online via CDTFA

Once you’ve totaled everything:

1. Log in to CDTFA Online Services

2. Select your business account

3. File your Sales and Use Tax Return

4. Pay directly via bank transfer, card, or other accepted methods

Even if you made zero sales, you still must file a “zero return” by the deadline.

Step 5: Keep Records and Stay Compliant

CDTFA requires you to:

• Keep accurate records of all sales and taxes collected

• File returns on time, even with no activity

• Pay on time to avoid penalties and interest

Bonus: Common Questions from Our Clients in Encinitas

What’s the sales tax rate in Encinitas?

• The current total rate (including local tax) is approximately 7.75%. This can vary slightly depending on district add-ons.

What happens if I pay late?

• You could face penalties up to 10%, plus monthly interest. It’s best to file on time—even if you can’t pay in full.

Can you do this for me?

Absolutely. See below.

Need Help Filing Your Sales Tax?

At Cardiff Tax Pros, we handle sales tax filings for local businesses across North County — including Encinitas, Cardiff, and Leucadia. Whether you’re behind or just starting, we’ll make sure your sales tax gets done right and on time.

Schedule your free consultation now or call us at +1 (858) 630-6960+1 (858) 630-69601 (858) 630-6960