If you're a dealer, yes. The California Department of Tax and Fee Administration (CDTFA) requires every motor vehicle dealer and wholesaler to hold a seller's permit, and selling online doesn't change that. Registration is free. If you're a private person selling your own car, you don't need a permit: the buyer pays use tax to DMV when they register the car.
Educational information only. This article is not legal or financial advice.
In this article
Who needs one
| Seller | Seller's permit? | Who pays the tax |
|---|---|---|
| Retail dealer selling to the public, online or on the lot | Yes, one per location | The dealer reports and pays sales tax to CDTFA |
| Wholesale-only dealer | Yes. Sales to other dealers for resale aren't taxed, but you need the permit and resale certificates | No tax on sales for resale |
| Private person selling their own car | No | The buyer pays use tax to DMV at registration |
| Someone buying cars to flip online | Needs a dealer license first, then a seller's permit |
Online sales are no exception
CDTFA says the permit requirement applies "even if your sales are made through Internet auction houses." Listing on Facebook Marketplace, Craigslist, OfferUp, CarGurus or your own website doesn't change whether you need a permit.
The occasional-sale rule doesn't help someone who flips cars. CDTFA treats no more than two sales in 12 months as occasional, but buying cars to resell makes you a dealer under the Vehicle Code, whatever the count. See How many cars can you sell without a dealer license?
How to get it
- Register online with CDTFA. It's free, though CDTFA can sometimes ask for a security deposit.
- Register each location if you have more than one.
- Keep a copy for your DMV application packet and your auction dealer packets.
- When you buy for resale, give the seller a resale certificate (CDTFA-230) with your permit number.
Frequently asked questions
Do wholesale dealers need a seller's permit?
Yes. Sales to other dealers for resale aren't taxed, but CDTFA still requires wholesalers to hold a seller's permit and collect resale certificates.
Is a California seller's permit free?
CDTFA doesn't charge to issue a seller's permit, but it may require a security deposit.
Do I need a seller's permit to sell my own car?
Usually not. An occasional private sale isn't a business; CDTFA treats no more than two sales in 12 months as occasional. The buyer pays use tax at DMV.
Related questions
- What is a seller registration number?
- How many cars can you sell in California without a dealer license?
- How much does a dealer license cost?
- Back to the California Dealer License FAQ
Next step: Seller's permit guide for dealers · Bookkeeping and sales tax basics
Resources
- CDTFA: Permits & Licenses (Opens in new window)
- CDTFA Publication 107, Do You Need a California Seller's Permit? (Opens in new window)
- CDTFA Tax Guide for Motor Vehicle Dealers (Opens in new window)
Sources: CDTFA Tax Guide for Motor Vehicle Dealers (Opens in new window) · CDTFA Publication 34, Motor Vehicle Dealers (PDF opens in new window) (Oct 2025) · CDTFA Publication 107 (Opens in new window) (Rev. July 2024) · CDTFA: Vehicles (Opens in new window) (use tax paid to DMV). Verified 2026-10-16.
This article is for educational purposes only and is not legal, tax or financial advice. Confirm your situation with CDTFA or a tax professional.