Yes, California has a statewide sales tax of 7.25 percent

California charges a sales tax on most goods you buy in the state. The base rate is 7.25 percent, which applies statewide. However, your actual tax rate depends on where you shop, because counties and cities can add their own local sales taxes on top of the state rate. This means the total you pay at checkout varies by location — it could be 7.25 percent in one place and 8.625 percent in another.

The state collects this tax from retailers, who are required to charge it at the point of sale and send it to the California Department of Tax and Fee Administration (CDTFA). You do not send in sales tax yourself unless you are a business owner — the store handles it.

Key Takeaways

  • California's base sales tax is 7.25 percent, but your actual rate includes local additions that vary by county and city.
  • Most tangible goods are taxed, but groceries, prescription medications, and certain medical equipment are exempt.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax in California.
  • You can find your exact local sales tax rate on the CDTFA website by entering your zip code.

How local taxes add to the statewide rate

The 7.25 percent state rate is a floor, not a ceiling. On top of it, counties add their own tax (usually 0.25 to 1.25 percent), and cities or special districts may add more. A purchase in Los Angeles County, for example, is taxed at 9.5 percent total — the 7.25 percent state rate plus 2.25 percent in local taxes. In San Francisco, the rate is 8.625 percent. In rural areas, it might be closer to 7.375 percent.

These local rates change when voters approve new taxes or when existing ones expire. The rate you see on a receipt is the combined total of all layers — you do not pay them separately. The retailer calculates the full amount and shows it as one line item.

To find your exact rate, visit the CDTFA website (cdtfa.ca.gov) and use their sales tax rate lookup tool. Enter your zip code and it will show you the current combined rate for that location.

What is and is not taxed in California

Not everything you buy is subject to sales tax. Groceries — unprepared food you cook at home — are exempt. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods, restaurant meals, and hot foods are taxed. Candy and soda are also taxed, even though they are food items.

Prescription medications are exempt from sales tax when you present a valid prescription. Over-the-counter medicines like pain relievers and cold medicine are taxed. Medical devices prescribed by a doctor — such as wheelchairs, hearing aids, and diabetic supplies — are generally exempt, but the rules vary by device type.

Clothing and shoes are taxed in California, with no exemption for children's clothing. Books, newspapers, and magazines are taxed. Gasoline is taxed. Utilities like electricity and water are not subject to sales tax — they have their own tax structure.

Services are usually not taxed

Most services in California do not have sales tax. A haircut, dental work, car repair, plumbing service, or house cleaning is not taxed. Professional services like accounting, legal information, and medical care are not taxed. Labor charges on repairs are not taxed, though parts you buy may be.

There are exceptions. Certain services like pest control, landscaping, and car washes are taxed in some jurisdictions but not others. If you are unsure whether a specific service is taxed, ask the business or check the CDTFA website.

Online and out-of-state purchases

If you buy something online from an out-of-state retailer and have it shipped to California, you may still owe sales tax. California requires out-of-state sellers to charge sales tax if they have a "nexus" in the state — meaning they have a warehouse, employees, or other physical presence here. Most large online retailers (Amazon, Walmart, Target) now collect California sales tax on orders shipped to the state.

If an out-of-state seller does not charge you sales tax, you are technically responsible for paying "use tax" — which is the same rate as sales tax — when you file your state income tax return. In practice, most individuals do not report this, but the obligation exists.

Who collects and where the money goes

Retailers are responsible for collecting sales tax from customers and sending it to the CDTFA each month. The CDTFA is the state agency that administers sales tax, use tax, and other taxes and fees in California. They audit retailers to may support they are collecting and reporting correctly.

The revenue is split between the state general fund, counties, cities, and special districts. The exact split depends on the tax rate — some local taxes go entirely to the local jurisdiction, while others are shared. This is why local governments have an interest in maintaining or raising sales tax rates.

Frequently Asked Questions

What is the sales tax rate where I live?

Go to cdtfa.ca.gov and use the sales tax rate lookup tool. Enter your zip code and it will show your combined state and local rate. Rates vary by location and change when new taxes are approved or old ones expire, so checking online is the most current way to find your exact rate.

Do I have to pay sales tax on everything I buy?

No. Groceries, prescription medications, and most services are exempt. Prepared foods, over-the-counter medicines, clothing, gasoline, and most goods are taxed. The CDTFA website has a detailed list of what is and is not taxable if you need to check a specific item.

Why is my sales tax different from the store next door?

Stores in different cities or counties have different local tax rates added on top of the state rate. Even stores a few blocks apart can have different rates if they are in different jurisdictions. Your receipt shows the rate for the location where you made the purchase.

Do I owe sales tax on things I buy online from out of state?

If the seller has a physical presence in California (warehouse, office, employees), they must charge you California sales tax. Most major retailers do this now. If they do not, you technically owe use tax when you file your state income tax return, though most people do not report it.

Can I get a sales tax refund?

No. Sales tax is a final charge at the point of sale. If you return an item and get a refund, the sales tax is refunded as part of that refund. You cannot claim a refund of sales tax you have already paid on items you keep.