San Francisco's sales tax rate and what it covers

San Francisco's combined sales tax rate is 8.625%. This rate combines the state sales tax (7.25%) with local taxes added by San Francisco and regional agencies. When you buy something in the city, the retailer adds this percentage to your purchase at checkout.

Sales tax applies to most tangible goods — clothing, groceries, electronics, furniture, and household items. It does not explore to services like haircuts, car repairs, or medical visits. Some items are exempt or taxed differently: groceries and prescription medications are not taxed, while prepared food and restaurant meals are.

The 8.625% rate has been stable for several years, but it can change if San Francisco voters approve a new local measure. The state portion (7.25%) is set by California law and applies everywhere in the state.

Key Takeaways

  • San Francisco's sales tax is 8.625%, made up of California's state rate plus local additions.
  • Sales tax applies to most goods you buy in stores but not to services or unprepared groceries.
  • The tax is calculated at the register and added to your total bill.
  • Online purchases from out-of-state sellers may not have sales tax added at checkout, but you may owe use tax when you file your California return.
  • Businesses collect and send sales tax to the state; you do not file it yourself unless you own a business.

What items are taxed and what are not

Most items you buy in a store are subject to sales tax. Clothing, shoes, electronics, books, toys, and household goods all get taxed. The same applies to alcohol, tobacco, and gasoline.

Groceries and prescription medications are not taxed in California, including in San Francisco. This means milk, bread, vegetables, and over-the-counter medicines you buy at a grocery store do not have sales tax added. However, prepared foods — sandwiches from a deli counter, hot pizza, or items from a restaurant — are taxed as meals.

Services are generally not subject to sales tax. A haircut, dental work, car repair, or plumbing visit does not get taxed. The distinction is straightforward: if you are buying a physical thing, it is usually taxed; if you are paying for someone's labor or informed, it usually is not.

How the 8.625% rate breaks down

The 8.625% total comes from three layers of tax. California's statewide sales tax is 7.25%. San Francisco adds a local tax of 1.25%, which funds city services and infrastructure. The remaining portion comes from regional taxes that support transit and other Bay Area services.

Different California cities have different total rates because they add different local percentages on top of the state base. Oakland's rate is 8.625%, the same as San Francisco. Berkeley is 8.625%. But a city in a different county might be 7.375% or 8.875% depending on what local measures voters have passed.

When you see a price tag in a San Francisco store, the amount shown does not include tax. The 8.625% is added at the register, so a $10 item costs $10.86 after tax.

Online purchases and use tax

If you order something online from a retailer outside California, sales tax may not be added at checkout. However, California law requires you to pay use tax on those purchases when you file your state income tax return. Use tax is the same rate as sales tax — 8.625% in San Francisco — and applies to items you bring into the state or have shipped to you.

In practice, most people do not track and report use tax on small personal purchases. The rule exists mainly to may support that online retailers and mail-order companies do not give buyers an unfair advantage over local stores. Large purchases or business inventory are more likely to be tracked.

If you buy from an online retailer that has a physical presence in California, they usually collect sales tax at checkout automatically, just as a store would.

Who collects and pays sales tax

Retailers — the stores and businesses that sell to you — are responsible for collecting sales tax and sending it to the state. You do not file sales tax yourself as a customer. The store calculates it, adds it to your bill, and remits the total to the California Department of Tax and Fee Administration each month or quarter.

If you own a business and sell goods or taxable services, you must register for a seller's permit with the state and collect sales tax from your customers. You then file returns and send the tax collected to the state on a schedule set by the Department of Tax and Fee Administration. The schedule depends on how much tax you collect — high-volume sellers file monthly, while smaller businesses may file quarterly or annually.

Businesses that fail to collect or remit sales tax can face penalties and interest. The state audits retailers to may support they are collecting and reporting correctly.

Why San Francisco's rate is what it is

San Francisco's local portion of sales tax (1.25%) was established through voter-approved measures over time. Each local tax increase requires a vote, so the rate reflects decisions made by San Francisco residents about how to fund city services.

The state portion (7.25%) is set by California law and applies statewide. It funds education, infrastructure, and other state services. Cities and counties cannot change the state rate — they can only add local taxes on top of it.

The regional portion supports Bay Area transit and other multi-county services. This is why the rate is the same across much of the Bay Area, even though each city has its own local add-on.

Frequently Asked Questions

Do I pay sales tax on groceries in San Francisco?

No. Unprepared groceries — milk, bread, vegetables, meat, and canned goods — are not taxed in California. Prepared foods like deli sandwiches, hot pizza, and restaurant meals are taxed. Prescription medications are also exempt from sales tax.

Is the 8.625% rate the same everywhere in San Francisco?

Yes. The rate is the same whether you shop in downtown San Francisco, the Mission District, or the Sunset. It applies to all purchases in the city limits. If you cross into another city or county, the rate may change.

What happens if a store does not charge me sales tax?

The store is required by law to collect it. If you notice a store is not charging tax, you can report it to the California Department of Tax and Fee Administration. The store could face penalties for not collecting tax properly.

Do I owe sales tax on items I buy outside California and bring home?

You may owe use tax on those items when you file your California tax return. Use tax is the same rate as sales tax (8.625% in San Francisco) and applies to goods you bring into the state. Most people do not report small personal purchases, but the rule technically applies.

Can San Francisco change its sales tax rate?

San Francisco can only change its local portion (the 1.25%) through a voter-approved measure. The state portion (7.25%) is set by California law and cannot be changed by the city. Any increase or decrease to the local rate requires a vote by San Francisco residents.