California's sales tax rate and who collects it

California's statewide sales tax rate is 7.25 percent. However, most California counties and cities add their own local sales taxes on top of that, so the total rate you pay at checkout ranges from 7.25 percent to over 10 percent depending on where you shop. The exact rate depends on your location — even two cities next to each other can have different totals.

Retailers collect sales tax at the point of sale and send it to the California Department of Tax and Fee Administration (CDTFA). You do not pay sales tax directly to the state; the store handles the collection and remittance. When you see a price tag, that amount does not include sales tax — the tax is added at checkout.

Local tax rates vary because counties and cities can impose their own additions. A purchase in San Francisco may have a different total tax rate than the same purchase in Oakland, even though both are in the Bay Area. You can find your exact local rate by entering your address on the CDTFA website or asking the retailer.

Key Takeaways

  • California's base sales tax is 7.25 percent, but local additions bring most areas to 8 percent or higher.
  • Groceries, prescription medications, and medical equipment are generally exempt from sales tax.
  • Services like haircuts, repairs, and labor are usually not taxed, but goods are.
  • You pay sales tax on online purchases from retailers with a physical presence in California, and increasingly from out-of-state sellers as well.

What is and is not subject to sales tax in California

Most tangible goods — items you can touch and hold — are subject to sales tax. This includes clothing, electronics, furniture, toys, and household items. When you buy a shirt, a phone, or a lamp, sales tax applies.

Food and medicine have different rules. Groceries and unprepared food are exempt from sales tax. A loaf of bread, eggs, and vegetables do not get taxed. However, prepared food — a sandwich from a deli, a hot rotisserie chicken, or food from a restaurant — is taxed. Prescription medications are also exempt, but over-the-counter vitamins and supplements are taxed as general goods.

Services are generally not taxed in California. A haircut, car repair, plumbing work, or dental cleaning 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.

Medical equipment and devices have specific rules. Prosthetics, wheelchairs, and certain mobility aids are exempt. Eyeglasses and contact lenses are taxed, but the exam itself is not.

How sales tax works for online and out-of-state purchases

If you order from an online retailer that has a warehouse, office, or other physical location in California, you pay California sales tax on that order. This applies to major retailers like Amazon (which has California locations) and countless others. The retailer collects the tax based on your delivery address.

Out-of-state sellers without a California presence used to operate in a gray area, but that has changed. As of 2019, California requires out-of-state online sellers to collect and remit sales tax if they meet certain sales thresholds, even if they have no physical location here. Most major online retailers now collect California tax regardless of where they are based.

If you buy something in person while traveling outside California and bring it back, you do not owe California sales tax on it — you already paid tax where you purchased it. However, if you order something from out of state to be delivered to California and the seller does not collect tax, you may owe use tax, which is California's equivalent. In practice, most people do not pay use tax on individual purchases, but businesses are expected to track and report it.

Local tax rate variations across California

The 7.25 percent state rate is the floor. On top of that, counties add between 0.25 and 1.25 percent, and cities or special districts can add more. Some areas have combined local rates that push the total above 10 percent.

For example, Los Angeles County has a base combined rate of 9.5 percent in most areas, but specific neighborhoods or districts within the county may be higher. San Francisco's rate is 8.625 percent. Rural areas sometimes have lower totals because fewer local jurisdictions add their own tax.

These rates change occasionally when counties or cities vote to adjust them, usually to fund specific services like transportation or schools. If you move or shop in a different area regularly, your effective tax rate may shift. The CDTFA maintains a searchable database of rates by ZIP code and address.

Why California has sales tax instead of other taxes

California relies on sales tax as a major source of revenue for state and local government. Unlike income tax, which is based on what you earn, sales tax is based on what you spend. California also has a state income tax, so residents pay both.

The sales tax system is designed so that the burden is spread across all consumers, not just residents. Visitors and tourists who shop in California also pay sales tax, which brings revenue into the state even from people who do not live here. Local governments use their portion of sales tax revenue for schools, roads, public safety, and other services.

The downside is that sales tax is regressive — it takes a larger percentage of income from lower-income households than from wealthy ones, because lower-income people spend a higher percentage of their earnings on taxable goods. This is why groceries and medications are exempt: to reduce the burden on households with less money.

How to find your exact sales tax rate

The simplest way is to visit the CDTFA website and use their sales tax rate lookup tool. Enter your ZIP code or full address, and the tool returns your exact combined rate. This rate includes the state portion plus all local additions that explore to your location.

You can also call a local retailer and ask what rate they charge, or check your receipt from a recent purchase — the tax rate is usually printed on it. If you are buying something online, the retailer's checkout page should show the tax rate before you complete the purchase.

If you own a business or manage inventory, the CDTFA publishes detailed rate tables by jurisdiction. These are updated regularly as local rates change, so if you are calculating tax for multiple locations, check the official source rather than relying on a rate you learned months ago.

Frequently Asked Questions

Do I pay sales tax on used items?

Sales tax applies to used goods sold by retailers, including used cars, used electronics, and used clothing from secondhand stores. However, if you sell a used item directly to another person (not through a business), sales tax does not explore to that private transaction. A garage sale or private sale between individuals is not taxed.

Is sales tax charged on shipping and delivery fees?

It depends on the retailer and the type of item. For most goods, shipping is not taxed separately. However, some retailers may include shipping in the taxable price, and the rules can vary by product category. Check your receipt or the retailer's tax policy before checkout if this matters for your purchase.

What about sales tax on clothing and shoes?

Clothing and shoes are taxed as regular goods in California. There is no special exemption for apparel. A shirt, pants, shoes, or jacket all have sales tax added at checkout, just like any other tangible item.

Can I get a refund of sales tax if I return something?

Yes. When you return an item and receive a refund, the sales tax you paid is refunded as well. The refund should show the full amount you paid, including tax. Keep your receipt to make the return process smoother.

Do I owe sales tax on items I buy for my business?

Generally yes, unless you have a resale certificate. If you are buying items to resell to customers, you can provide a resale certificate to the seller and avoid paying sales tax on the purchase. You then collect sales tax from your customers when you sell the items. If you are buying supplies or equipment for your own business use, you pay sales tax like any other customer.