California's Sales Tax Rate and What It Covers
California's statewide sales tax is 7.25 percent, but the total tax you pay at checkout is usually higher because counties and cities add their own local taxes on top. Your final rate depends on where you make the purchase — it can range from 7.25 percent in some areas to over 10 percent in others. The tax applies to most goods you buy in stores, but not to groceries, prescription medications, or most services like haircuts or car repairs.
When you buy something subject to sales tax, the seller collects the tax at the register and sends it to the state and local governments. You do not pay the tax separately — it is included in the total amount you see on your receipt. The statewide portion funds education, infrastructure, and other state services, while the local portions fund county and city services in your area.
Key Takeaways
- California's base sales tax is 7.25 percent, but your actual rate is higher because your county and city add local taxes on top of that amount.
- Sales tax applies to most physical goods but not to groceries, prescription drugs, or most services.
- The seller collects the tax at checkout and sends it to state and local governments — you do not pay it separately.
- Your exact tax rate depends on your location, so two purchases in different cities can have different tax amounts even if the price is the same.
- Some items like clothing under $110 and certain medical equipment may have reduced or no tax in specific situations.
How Local Taxes Add to the Statewide Rate
The 7.25 percent statewide rate breaks down into three parts: 6 percent goes to the state, 1 percent goes to your county, and 0.25 percent goes to a special district. On top of that, your city or county can add additional local taxes — these are called district taxes or local option taxes. Some areas add 0.5 percent, others add 1.5 percent or more, depending on what local voters approved.
This is why sales tax varies so much across California. A purchase in Los Angeles might be taxed at 9.5 percent, while the same purchase in San Francisco could be 8.625 percent, and in a smaller town it might be 7.25 percent. You can find your exact local rate by entering your zip code on the California Department of Tax and Fee Administration website, or by asking a cashier what the rate is in your area.
What Items Are Taxed and What Are Not
Most things you buy in stores are taxed, including clothing, electronics, furniture, and household goods. However, groceries — fresh fruits, vegetables, meat, dairy, and bread — are not taxed. Prescription medications are also tax-free, but over-the-counter medicines like cold medicine or pain relievers are taxed. Restaurant meals and prepared foods are taxed, but unprepared groceries you cook at home are not.
Services are generally not taxed in California. When you pay for a haircut, car repair, plumbing work, or medical visit, there is no sales tax added. However, some services bundled with goods can be taxed — for example, if a store installs a part you buy, the installation labor might be taxed depending on how it is structured. When in doubt, ask the seller whether tax will be added to your purchase.
Special Tax Situations and Exemptions
Clothing and footwear under $110 per item are tax-free in California. This means a $100 shirt is not taxed, but a $150 shirt is taxed on the full amount. If you buy multiple items, each item is measured separately — so two $60 shirts would both be tax-free, but a $60 shirt and a $150 jacket would have tax only on the jacket.
Certain medical equipment and mobility aids may be tax-free or have reduced tax, including prosthetics, wheelchairs, and diabetic supplies. Prescription eyeglasses and contact lenses are also exempt. If you use medical equipment regularly, ask your doctor or the seller whether it qualifies for a tax exemption — you may need to provide a prescription or medical documentation.
How to Find Your Local Sales Tax Rate
The easiest way to find your exact sales tax rate is to visit the California Department of Tax and Fee Administration website and use their sales tax rate lookup tool. You enter your zip code or address, and it shows you the combined state and local rate for that location. You can also call a local tax assessor's office or ask a cashier at any store in your area.
Keep in mind that your rate can change if you move to a different city or county, or even to a different part of your city if it is in a special tax district. If you shop online and have the item shipped to California, the seller should charge you the sales tax rate for the address where it is being delivered. If they do not, you may owe use tax — a similar tax on out-of-state purchases — though most major online retailers now collect this automatically.
Sales Tax on Online and Out-of-State Purchases
When you order something online from a retailer outside California and have it shipped to a California address, you owe sales tax on that purchase. Most large online retailers, including Amazon, now collect California sales tax automatically at checkout. If a seller does not collect it, you are technically responsible for paying use tax to California, though enforcement for individual purchases is rare.
The tax rate applied to your online order is based on the zip code where the item is being delivered, not where the seller is located. If you are unsure whether tax was included in your online purchase, check your receipt or contact the seller. For high-value purchases, it is worth confirming that tax was collected correctly.
Frequently Asked Questions
Why is my sales tax different from the person next to me at checkout?
You may live in different cities or counties, even if you are shopping at the same store. Each location has its own combination of state, county, and local taxes. Two stores on opposite sides of a city border can have different tax rates. Check your receipt to see the exact rate charged, or look up your zip code on the state tax website.
Are groceries really not taxed in California?
Fresh groceries like produce, meat, dairy, and bread are not taxed. However, prepared foods, hot foods, candy, and soda are taxed. If you are unsure whether something counts as a grocery, the general rule is: if it is uncooked and ready to eat as-is, it is probably not taxed. Ask the cashier if you are uncertain.
Do I pay sales tax on services like haircuts or car repairs?
No, most services are not subject to sales tax in California. You do not pay sales tax on labor for repairs, medical visits, haircuts, or plumbing work. However, if you buy a product as part of the service — like a haircut plus a shampoo product — the product portion may be taxed separately.
What happens if I buy something online from out of state?
You owe California sales tax on the purchase, based on where it is being shipped. Most major retailers collect this automatically now. If the seller did not collect tax, you may owe use tax to California, though the state rarely pursues individual consumers for small purchases.
Can I get a refund if I was charged sales tax by mistake?
If you were charged tax on an item that should be tax-free — like groceries or prescription medication — ask the store for a refund. Bring your receipt and the item if possible. For large purchases, contact the store's customer service department. If the store refuses, you can file a complaint with the California Department of Tax and Fee Administration.