California's sales tax rate and how it works

California's statewide sales tax is 7.25 percent. This is the base rate that applies everywhere in the state. However, most counties and cities add their own local sales tax on top of that amount, so your actual rate depends on where you make the purchase. The combined rate in your area could be anywhere from 7.25 percent to over 10 percent.

Sales tax is added at the point of sale — when you buy something at a store, online, or from a service provider. The retailer collects the tax from you and sends it to the state and local tax authorities. You see it as a line item on your receipt, added to the price of the item.

The tax applies to most goods you buy, including clothing, electronics, groceries (with some exceptions), and household items. It also applies to certain services, though not all. Understanding what is and isn't taxed can help you budget for purchases and understand your receipts.

Key Takeaways

  • California's base sales tax is 7.25 percent, but your local rate is higher because counties and cities add their own taxes on top.
  • You can find your exact local sales tax rate by entering your zip code on the California Department of Tax and Fee Administration website.
  • Most goods are taxed, but unprepared food, prescription medications, and certain medical equipment are exempt.
  • Online purchases are taxed the same way as in-store purchases, using the tax rate of the delivery address, not the seller's location.
  • Some cities and counties have different rates for different types of purchases, so the tax on groceries might differ from the tax on clothing in your area.

Local sales tax rates vary by county and city

The 7.25 percent state rate is just the starting point. On top of that, your county adds a tax, and your city may add another. Los Angeles County adds 9.5 percent total (state plus local combined). San Francisco adds 8.625 percent. San Diego adds 7.75 percent. These are just examples — your specific rate depends on exactly where you are.

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.

Some areas have temporary local tax increases that expire on a set date. If you live in a place with a temporary increase, that rate will drop when the measure ends. Your receipt should always show the tax rate applied to that transaction.

What is taxed and what is not

Most items you buy are subject to sales tax. Clothing, shoes, electronics, furniture, toys, and household goods all get taxed. Services like haircuts, car repairs, and dry cleaning are also taxed in California.

Some items are exempt. Unprepared food — groceries you cook at home — is not taxed. This includes raw vegetables, meat, dairy, bread, and canned goods. However, prepared food from a restaurant, deli counter, or food truck is taxed. Prescription medications are not taxed, but over-the-counter drugs and vitamins are. Medical equipment prescribed by a doctor, like wheelchairs or hearing aids, may be exempt depending on the specific item.

Newspapers and magazines are not taxed. Neither are most educational materials. Some items sold by nonprofits may be exempt, though this varies. If you are unsure whether something is taxed, ask the cashier or check your receipt — it will show whether tax was applied.

How online purchases are taxed

Online purchases are taxed based on where the item is being delivered, not where the seller is located. If you order something online and have it shipped to your California address, California sales tax applies. The rate used is the rate for your delivery zip code.

Large online retailers like Amazon, Walmart, and Target collect and pay California sales tax on purchases shipped to the state. Smaller sellers may or may not collect tax — if they do not, you may be responsible for reporting the purchase on your tax return, though this is rarely enforced for individual purchases. Either way, the tax is owed; it is just a question of who pays it.

If you order something from out of state and have it shipped to California, tax still applies. If you pick up an online order in a California store, the tax rate for that store's location is used.

Who collects and where the money goes

The retailer or seller collects sales tax from you at the time of purchase. They then send that money to the California Department of Tax and Fee Administration, which distributes it to the state and to the local jurisdictions where the purchases occurred.

The state keeps a portion and sends the rest to counties and cities. How much each local area receives depends on the local tax rate and the total sales in that area. This money funds local services like schools, roads, public safety, and other city and county programs.

Retailers are required to keep records of the tax they collect and file returns with the state. If a retailer fails to collect or pay sales tax, they can face penalties and interest.

Special situations and exceptions

Resale certificates allow businesses to buy items without paying sales tax if they plan to resell them. A clothing store, for example, does not pay tax when buying inventory from a wholesaler. The tax is collected when the customer buys the finished item.

Some nonprofits and government agencies may be exempt from paying sales tax on certain purchases. A school district buying supplies for classrooms, for instance, may not pay tax. These exemptions are specific and require documentation.

If you believe you were charged tax incorrectly, you can contact the retailer or the California Department of Tax and Fee Administration. Mistakes do happen, and tax can sometimes be refunded if you have proof of the error.

Frequently Asked Questions

What is the sales tax rate in my city?

Go to the California Department of Tax and Fee Administration website and enter your zip code. It will show you the exact combined state and local rate for your location. Rates change when local measures pass or expire, so checking the official site gives you the current rate.

Do I pay sales tax on groceries?

Unprepared food — items you take home and cook — is not taxed. This includes produce, meat, dairy, bread, and canned goods. Prepared food from a restaurant, deli, or food truck is taxed. Some items like candy and soda are considered prepared food and are taxed even if you buy them at a grocery store.

Why do different cities have different sales tax rates?

Each city and county sets its own local sales tax rate to fund local services. A city might add tax to pay for schools or roads. A county might add a different amount. The state allows this local control, so rates vary across California.

Do I have to pay sales tax on online orders?

Yes. Sales tax is based on where the item is delivered, not where you or the seller are located. If it is shipped to a California address, California sales tax applies at the rate for that zip code. Large retailers collect this automatically; smaller sellers may not.

Can I get a refund if I was overcharged sales tax?

If you can show that tax was applied incorrectly — for example, tax was charged on an exempt item — you can contact the retailer or the California Department of Tax and Fee Administration to request a refund. Keep your receipt as proof of the transaction.