What is different about tax in California?

California legislation states that the tax charged for a drop-shipped item must be based on:

  1. The amount the out-of-state retailer charged the California consumer (if known), or
  2. The amount the California retailer (drop shipper) charged the out-of-state retailer plus a markup of 10 percent.

This means if we don't know your retail price, we must use our Printful price + 10%, rather than just the Printful price. For example, let's say you are selling a shirt that costs $10 on Printful. If we don't have the retail price, then when it comes to sales tax, it would look like this:

$11 x 7.5%

Where $10 + %10 is $11, and tax rate depends on the county. You can find more information here.


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