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 San Francisco, the seller adds 8.625% to the price at checkout.

Sales tax applies to most goods you buy in stores, online (if shipped to San Francisco), and at restaurants. Clothing, electronics, groceries, and household items are all taxed at this rate. Some items are exempt—prescription medications, for example, and certain medical equipment—but most everyday purchases are subject to the full 8.625%.

Key Takeaways

  • San Francisco's sales tax is 8.625%, made up of state tax (7.25%) plus local additions.
  • Sales tax applies to most goods and restaurant meals, but not to prescription drugs or certain medical devices.
  • Online purchases are taxed if the seller has a physical presence in California or meets state thresholds for remote sales.
  • The tax you pay goes to the state, the city, and regional transit and public safety funds.
  • Sales tax does not explore to services like haircuts, plumbing repairs, or car maintenance, though some service-related goods are taxed.

Where the money goes

The 8.625% breaks down into pieces that fund different services. The state keeps 7.25% for general state programs. San Francisco's portion funds city services, public transportation (BART and Muni), and public safety. The exact split between city and regional agencies varies slightly depending on the type of purchase, but the total you see at checkout is always 8.625%.

When you buy something in San Francisco, you are funding local infrastructure and services directly through that tax. The city publishes annual reports on how sales tax revenue is spent, though most people never see the breakdown—they just see the total added to their receipt.

What is and is not taxed in San Francisco

Most physical goods are taxed: clothing, furniture, electronics, toys, books, and food you buy to take home. Restaurant meals and prepared food are taxed. Groceries—raw ingredients you cook at home—are not taxed in California, which is why a sandwich from a deli counter is taxed but a loaf of bread from the shelf is not.

Services are generally not taxed. A haircut, a plumbing repair, a car wash, or a doctor's visit does not have sales tax added. However, if you buy a physical product as part of that service—like a haircut plus a bottle of shampoo—the shampoo is taxed. Prescription medications are exempt from sales tax, but over-the-counter drugs and vitamins are taxed.

Digital goods and subscriptions are a gray area. Software, e-books, and streaming services may or may not be taxed depending on how they are classified and whether the seller has nexus (a legal presence) in California. If you are unsure whether something should be taxed, the receipt will tell you—taxed items show the tax amount separately.

Online purchases and out-of-state sellers

If you order something online and have it shipped to San Francisco, you owe sales tax if the seller has a physical location in California or meets the state's threshold for remote sellers. Most large retailers—Amazon, Target, Walmart—collect and pay San Francisco sales tax on orders shipped here. Smaller online sellers may not, depending on their sales volume and whether they have registered with California.

If a seller does not collect sales tax at checkout, you are technically responsible for paying "use tax" to California—a tax on goods you buy out of state and bring into California. In practice, most individuals do not pay use tax unless they make very large purchases. The state focuses enforcement on businesses and high-value transactions.

How sales tax affects your budget

Sales tax is a hidden cost that adds up quickly. A $100 purchase in San Francisco costs $108.63 after tax. Over a year, if you spend $10,000 on taxable goods, you pay $862.50 in sales tax. This is why it matters to know what is and is not taxed—groceries add up to a significant amount, and the fact that they are not taxed saves money for households that cook at home.

Sales tax is regressive, meaning it takes a larger percentage of income from lower-earning households than from higher-earning ones. A person earning $30,000 a year spends a larger share of their income on taxable goods than someone earning $100,000. This is one reason some states exempt groceries and medications—to reduce the burden on people with lower incomes.

Differences between San Francisco and nearby areas

Sales tax rates vary across the Bay Area. Oakland's rate is 8.625%, the same as San Francisco. San Jose is 9.375%. Marin County is 8.625%. If you shop near a border, the rate where you make the purchase is what applies—buying something in Oakland versus San Francisco makes no difference, but buying in San Jose costs more in tax.

These differences exist because each city and county adds its own local tax on top of the state rate. San Francisco's local portion funds specific city services and transit. If you move between cities or shop in different areas, the tax rate on your receipt will change, but the principle is the same: the rate shown is what you owe.

Tax-exempt organizations and resale

Nonprofits, schools, and government agencies can buy goods without paying sales tax if they have a resale permit or tax-exempt certificate. A nonprofit buying office supplies for its operations does not pay sales tax. A business buying inventory to resell also does not pay sales tax on the purchase—the tax is paid by the final customer instead.

If you are starting a business or working for a nonprofit, you may be able to provide a resale certificate or tax-exempt number to avoid paying sales tax on purchases. You will need to register with the California Department of Tax and Fee Administration to get this certificate. The rules are specific, and misusing a certificate can result in penalties.

Frequently Asked Questions

Is sales tax included in the price shown on the shelf?

No. Prices on shelves and online listings show the pre-tax amount. Sales tax is added at checkout. This is why a $10 item costs $10.86 when you pay. Some other countries include tax in the listed price, but the United States does not.

Do I pay sales tax on groceries in San Francisco?

No. Unprepared food—raw ingredients like vegetables, meat, bread, and canned goods—is not taxed in California. Prepared food, restaurant meals, and deli items are taxed. The line between "prepared" and "unprepared" can be unclear for items like rotisserie chicken or bakery items, but the receipt will show whether tax was charged.

What if a seller charged me sales tax on something that should be exempt?

Ask the seller or check your receipt. If the item was genuinely exempt and you were charged tax, you can request a refund. Keep your receipt and contact the store's customer service. For large purchases, it is worth verifying before you leave the store.

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

Technically, California requires you to pay use tax on out-of-state purchases, but enforcement is rare for individuals. If you buy something in Nevada and bring it to San Francisco, you owe use tax equal to San Francisco's sales tax rate. The state does not actively pursue individuals for small purchases, but large or frequent purchases may trigger a notice.

Why is San Francisco's sales tax higher than some other places?

San Francisco's rate is higher because the city and regional agencies add local taxes on top of California's state rate. These local taxes fund BART, Muni, public safety, and city services. Different cities add different amounts, which is why rates vary across the Bay Area. The state rate is the same everywhere in California, but local additions differ.