California has a statewide sales tax of 7.25 percent, but your actual rate is usually higher

California's base sales tax rate is 7.25 percent, set by the state. However, most California counties and cities add their own local sales taxes on top of that. Your total rate depends on where you live and where you make the purchase. In some areas you might pay 7.25 percent; in others you could pay 8.5 percent or more. The rate can even differ between two neighborhoods in the same city.

The tax applies to most goods you buy in a store or online. It does not explore to groceries, prescription medications, or medical equipment. Some services are taxed and others are not — haircuts are taxed, but doctor visits are not. When you see a price tag in a California store, that price does not include sales tax; the tax is added at checkout.

Key Takeaways

  • California's base sales tax is 7.25 percent, but local taxes usually raise your actual rate to between 7.25 and 10.25 percent depending on your county and city.
  • Groceries and prescription medications are not subject to sales tax in California, but prepared food and most other goods are.
  • You can find your exact local sales tax rate on the California Department of Tax and Fee Administration website by entering your zip code.
  • Online purchases from out-of-state sellers are subject to California sales tax if the seller has a physical presence in the state or meets certain sales thresholds.

How California's sales tax is divided between state and local governments

Of the 7.25 percent base rate, the state of California keeps 6 percent. The remaining 1.25 percent goes to counties. On top of that, individual counties can add their own rate (usually between 0.5 and 2.5 percent), and cities within those counties can add even more. This layered system means that a purchase in San Francisco is taxed differently than the same purchase in Los Angeles or Sacramento.

The money collected goes to different places depending on which part of the tax it is. State sales tax funds general state services. County and city portions typically go toward local services like schools, public safety, and infrastructure. Some local taxes are temporary and tied to specific projects — a city might add 0.5 percent for five years to fund a new library, for example.

What items are taxed and what are not

Food you buy at a grocery store to cook at home is not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food — anything meant to be eaten right away — is taxed. A sandwich from a deli counter is taxed. A rotisserie chicken is taxed. A frozen dinner is taxed. The line between "groceries" and "prepared food" matters for your receipt.

Prescription medications are not taxed. Over-the-counter medications like aspirin or cold medicine are taxed. Medical equipment prescribed by a doctor — wheelchairs, hearing aids, diabetic supplies — is generally not taxed, but you may need to show a prescription or doctor's note. Clothing and shoes are taxed. Diapers and feminine hygiene products are not taxed as of 2023.

Services are handled differently than goods. A haircut is taxed. A dental cleaning is not. A car wash is taxed. A car repair is taxed. Gym memberships are not. Streaming services are not taxed in California, but phone and internet service are. The rule is not always obvious, so if you are unsure whether something should be taxed, ask the seller or check the California Department of Tax and Fee Administration website.

Finding your exact local sales tax rate

The easiest way to find your rate is to visit the California Department of Tax and Fee Administration website and use their sales tax rate lookup tool. Enter your zip code and the tool shows you the exact rate for that location. You can also call the department at 1-800-400-7115, though the website is faster.

If you are shopping online or by mail, the rate that applies is the rate where the item is being delivered, not where you live or where the seller is located. If you order something to be shipped to a friend in a different California city, that city's rate applies. If you pick up an order at a store location, the rate at that store location applies.

Sales tax on online and out-of-state purchases

Online purchases from sellers with a physical location in California are subject to California sales tax. This includes major retailers like Amazon, Target, and Walmart, which have warehouses and stores in the state. The tax is calculated based on the delivery address, not your billing address.

Out-of-state sellers without a California location used to be exempt from collecting California sales tax, but that changed. As of 2019, online sellers who have more than $100,000 in sales to California customers in the previous 12 months must collect and pay California sales tax. Many smaller sellers have voluntarily registered to collect it as well. If a seller does not collect tax at checkout, you may owe it when you file your state income tax return, though most individual purchases are too small for this to matter in practice.

How to read your receipt and understand what was taxed

Your receipt shows the subtotal (the price before tax), the tax amount, and the total. The tax line should show the rate applied — for example, "Tax (8.625%)" — and the dollar amount. If you buy multiple items, some taxed and some not, the receipt should break this out, though not all stores do this clearly.

If you think you were charged the wrong rate, check your receipt against the current rate for that location on the California Department of Tax and Fee Administration website. Rates change occasionally when local measures pass or expire. If the rate on your receipt is higher than the current rate, bring it to the store's attention. If it is lower, the store may have made an error or the rate may have changed since the purchase.

Frequently Asked Questions

Is sales tax the same everywhere in California?

No. The base state rate is 7.25 percent, but counties and cities add local taxes. Your total rate depends on your exact location. Two addresses on opposite sides of a city street can have different rates. Use the California Department of Tax and Fee Administration lookup tool with your zip code to find your specific rate.

Do I have to pay sales tax on groceries?

No. Unprepared food you buy at a grocery store — produce, meat, dairy, bread, canned goods — is not taxed. Prepared food like deli sandwiches, rotisserie chicken, and hot pizza is taxed. If you are unsure whether something counts as prepared food, ask the cashier.

What about sales tax on items I buy online from another state?

If the seller has a significant presence in California or meets the sales threshold, they must collect California sales tax based on your delivery address. If they do not collect it, you technically owe it on your state tax return, but this rarely applies to individual small purchases.

Can I get a refund of sales tax I already paid?

Generally no, unless you return the item and get a refund. If you believe you were overcharged due to an incorrect tax rate, contact the store. For larger disputes, you can file a complaint with the California Department of Tax and Fee Administration, though individual small overcharges are rarely worth pursuing.

Are there any items that used to be taxed but are not anymore?

Yes. As of January 2023, diapers and feminine hygiene products are no longer subject to sales tax in California. Prescription medications have been exempt for many years. Laws change, so check the California Department of Tax and Fee Administration website if you are unsure about a specific item.