California's base sales tax is 7.25 percent, but your actual rate depends on your county and city

California's state sales tax starts at 7.25 percent on most purchases. However, that is not what you pay at checkout. Your county and city can add their own sales taxes on top of the state rate, which means the total you owe ranges from 7.25 percent to over 10 percent depending on where you live. A purchase that costs $100 in one California city might cost $110 in another.

The state collects its 7.25 percent share and distributes it to counties and cities based on where the sale happened. Local taxes go directly to the county or city government. This layered system means you need to know your specific location's rate, not just the state number.

Key Takeaways

  • California's state sales tax is 7.25 percent, but counties and cities add local taxes that raise your total rate to between 7.25 and over 10 percent.
  • Sales tax applies to most goods but not to groceries, prescription medications, or medical devices.
  • You pay sales tax at the point of sale for in-store purchases and at checkout for online orders shipped to California addresses.
  • Your actual tax rate depends on your delivery address or the store location, not where you live or work.

How local taxes stack on top of the state rate

California allows counties to add a 1.25 percent tax and cities to add up to 1.5 percent on top of the state's 7.25 percent. Most counties and cities use some or all of this allowance. Los Angeles County adds 0.25 percent, bringing the county total to 7.5 percent, but Los Angeles city adds another 1.5 percent, making the city rate 9 percent. San Francisco adds 1.5 percent to reach 8.625 percent. Rural areas may have lower local rates.

The tax you pay is determined by where the transaction occurs, not where you live. If you buy something in San Francisco but live in a county with a lower rate, you pay San Francisco's rate. If you order online and have it shipped to your home address in a different city, you pay that city's rate.

What items are taxed and what are not

Sales tax applies to clothing, electronics, furniture, appliances, and most other goods. It also applies to prepared food, restaurant meals, and takeout. However, unprepared groceries — bread, milk, vegetables, meat, canned goods — are not taxed. Prescription medications and certain medical devices are also exempt.

Services are generally not taxed in California, though there are exceptions. Haircuts, repairs, and labor are usually not subject to sales tax. Digital goods like e-books, music downloads, and streaming subscriptions are taxed. Gasoline is taxed, but the tax is built into the pump price and shown separately on your receipt.

Sales tax on online and mail orders

If you order something online and have it shipped to a California address, you pay sales tax based on the delivery address's rate. This applies whether you order from an out-of-state retailer or a California business. The retailer collects the tax at checkout and sends it to California.

If you pick up an order at a store location, you pay the tax rate for that store's location. If you order online from a retailer with no California presence and have it shipped out of state, then bring it back to California yourself, no sales tax is collected at the time of purchase — but you may owe use tax when you register the item or bring it into the state, depending on what it is.

Finding your specific sales tax rate

The California Department of Tax and Fee Administration (CDTFA) maintains a sales tax rate lookup tool on its website. You enter your address or zip code and it shows your exact combined rate. This is the most reliable way to know what you will pay, since rates change when local jurisdictions update their taxes.

Retailers are required to display the sales tax rate at checkout or on their receipt. If you are shopping in person, the receipt shows the rate applied. Online retailers show the rate before you complete your purchase. If the rate shown does not match what you expect, check the CDTFA tool to confirm your location's actual rate.

Who collects and where the money goes

Retailers collect sales tax from customers and send it to the state. The CDTFA distributes the revenue: the state keeps its 7.25 percent share, and local taxes go to the county and city where the sale occurred. Counties use their share for services like public health and transportation. Cities use theirs for police, fire, streets, and other local services.

Businesses file sales tax returns monthly or quarterly depending on their size and sales volume. The CDTFA audits returns to make sure the correct amount was collected and reported. If a retailer fails to collect or report sales tax, the state can pursue the business and, in some cases, hold the business owner personally liable.

Sales tax on vehicles and large purchases

Vehicle purchases are subject to sales tax in California, calculated on the purchase price. The tax is collected when you register the vehicle with the Department of Motor Vehicles. If you buy a car out of state and bring it to California, you owe California sales tax or use tax on the purchase price, even if you already paid tax in another state.

Large purchases like boats, aircraft, and heavy equipment follow the same rule: sales tax applies based on the location of the sale or delivery. If you buy a boat in another state and have it delivered to California, you owe California tax. The tax is typically collected at the point of registration or title transfer.

Frequently Asked Questions

What is the difference between sales tax and use tax?

Sales tax is collected when you buy something. Use tax is what you owe if you buy something out of state and bring it to California without paying California sales tax. For example, if you buy a laptop in Nevada and bring it home to California, you owe California use tax on the purchase price. Most people do not report use tax, but it is legally owed.

Do I pay sales tax on groceries?

No. Unprepared food — groceries like bread, milk, vegetables, and canned goods — is not taxed. However, prepared food, hot food, and food eaten at a restaurant or takeout counter is taxed. The distinction is whether the food is ready to eat or requires preparation at home.

Why does my sales tax rate change depending on where I shop?

Your rate depends on the location of the store or your delivery address, not where you live. Each city and county in California sets its own local tax rate on top of the state's 7.25 percent. A store in one city may have a different rate than a store five miles away in another city.

Is sales tax included in the price shown on store shelves?

No. The price on the shelf or online is the pre-tax price. Sales tax is added at checkout. This is why the total you pay is higher than the displayed price. The receipt shows the tax amount separately.

Do I pay sales tax on prescription medications?

No. Prescription medications are exempt from sales tax in California. Over-the-counter medications like pain relievers and cold medicine are taxed. The difference is whether a doctor's prescription is required.