California's Base Sales Tax Rate
California's statewide sales tax rate is 7.25 percent. This is the minimum rate you pay on most purchases in the state. However, your actual rate depends on where you live, because counties and local districts can add their own taxes on top of the state rate.
The 7.25 percent breaks down as 6 percent state tax plus 1.25 percent for county and local use. When you buy something in California, you are paying at least this amount, but often more. A purchase that costs $100 before tax will cost at least $107.25 after the state minimum is applied.
Key Takeaways
- California's base sales tax is 7.25 percent, but your actual rate is higher because your county or city adds extra tax on top.
- Sales tax rates range from 7.25 percent to over 10 percent depending on which county and city you are in.
- You can find your exact local rate by entering your zip code on the California Department of Tax and Fee Administration website.
- Most tangible goods are taxed, but groceries, prescription medications, and some medical equipment are usually exempt.
- Services like haircuts, repairs, and professional fees are generally not subject to sales tax in California.
How Local Taxes Add to the State Rate
On top of the 7.25 percent state rate, your county adds a tax, and your city or district may add another. These local additions exist because counties and cities fund schools, transportation, and other services through sales tax revenue. A county might add 0.5 percent, and your city might add another 0.5 percent or more, bringing your total to 8.25 percent or higher.
The exact combination depends on where you are. Los Angeles County has a base county rate of 0.5 percent, but some cities within it add their own rate on top. San Francisco has a higher combined rate. Even two neighborhoods a few miles apart can have different rates if they cross a city boundary.
The easiest way to find your exact rate is to visit the California Department of Tax and Fee Administration website and enter your zip code. The site will show you the combined rate for your location. You can also call your city or county tax assessor's office, though the website is faster.
What Is and Is Not Taxed
Most items you buy in a store are subject to sales tax. Clothing, electronics, furniture, and household goods all get taxed. However, California exempts certain categories that are considered necessities.
Groceries and food are generally not taxed in California, though prepared food and hot food are. A sandwich from a deli counter is taxed, but a loaf of bread from the shelf is not. Prescription medications are also exempt. Medical equipment like wheelchairs, crutches, and hearing aids are typically exempt when prescribed by a doctor.
Services are usually not taxed. A haircut, car repair, dental work, or plumbing service does not have sales tax added. However, if you buy a product as part of that service—like a haircut that includes a shampoo product—the product portion may be taxed depending on how the business separates the charges.
Sales Tax on Online and Out-of-State Purchases
If you buy something online from a seller outside California, you may still owe sales tax. California requires out-of-state sellers to collect and send sales tax if they have a significant presence in the state or meet certain sales thresholds. Most large online retailers now collect California sales tax automatically at checkout.
If a seller does not collect sales tax at the time of purchase, California residents are technically responsible for paying "use tax" on that purchase. Use tax is the same rate as sales tax and is meant to prevent people from avoiding tax by buying out of state. In practice, most individuals do not report use tax on personal purchases, but the obligation exists.
When Sales Tax Applies to Services
Most services are not taxed, but some specific services do have sales tax. Telecommunications services like cell phone plans and internet service are taxed. Utilities like electricity and gas are taxed. Pest control, landscaping, and janitorial services are taxed in California.
The rule is not straightforward because it depends on whether the service is considered a "service" or a "product." If a business sells you a tangible item as the main thing, it is taxed. If the main thing is labor or informed, it usually is not. When in doubt, ask the business whether tax will be added to your bill.
How to Find Your Exact Local Rate
Your sales tax rate depends entirely on your location. The California Department of Tax and Fee Administration maintains a database of all rates by zip code. Go to their website, select "Sales Tax Rates by Location," and enter your zip code. The site will show you the combined state, county, and local rate for that area.
You can also search by city name if you do not have a zip code handy. The result will show you the rate as a percentage and sometimes break down which parts come from the state, county, and city. If you are moving or shopping in a different area, you can check the rate there the same way.
If you are a business owner or accountant, you may need to track rates for multiple locations. The same website has downloadable lists of all rates by county, which you can use for record-keeping or tax software.
Frequently Asked Questions
Is California sales tax the highest in the country?
California's combined rate is among the highest, but it is not the single highest. Some counties in California exceed 10 percent when local taxes are included. However, other states like Tennessee and Louisiana have high rates too. The rate varies so much by location that comparing states is not straightforward.
Do I pay sales tax on groceries in California?
Most groceries are not taxed. Fresh produce, bread, dairy, and packaged foods are exempt. Hot or prepared foods—like rotisserie chicken, deli sandwiches, or items from a hot bar—are taxed. If you are unsure, ask the cashier before checkout.
What if I buy something in one California city and use it in another?
You pay the sales tax rate of the city where you make the purchase, not where you use the item. If you buy something in San Francisco and take it home to Oakland, you paid San Francisco's rate. The tax is based on the point of sale, not the destination.
Are clothing and shoes taxed in California?
Yes, clothing and shoes are subject to sales tax in California. There is no clothing exemption. A shirt, pants, or pair of shoes will have your local sales tax added at checkout.
Do I owe sales tax if I buy from a private person, not a store?
Private sales between individuals are generally not subject to sales tax. However, if you buy a vehicle from a private person, you owe use tax to the state when you register it. For most other items bought privately, no sales tax or use tax applies.