San Francisco's Current Sales Tax Rate
San Francisco's sales tax rate is 8.625%. This rate applies to most retail purchases within the city limits. The rate is made up of the California state sales tax (7.25%) plus a local tax of 1.375% that San Francisco collects.
The 8.625% rate has been in place since 2018, when San Francisco voters approved Proposition C, a local measure that added 0.5% to the previous rate. Before that increase, the rate was 8.125%. Unlike some cities that change their rates frequently, San Francisco's current rate has remained stable for several years.
Key Takeaways
- San Francisco charges 8.625% sales tax on most purchases, combining California's state rate with a local city tax.
- Groceries, prescription medications, and some medical equipment are exempt from sales tax in California and San Francisco.
- Prepared food, restaurant meals, and takeout are taxed at the full 8.625% rate, even if you eat it elsewhere.
- Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical presence in California.
- The local portion of San Francisco's tax (1.375%) funds city services including public health, homelessness programs, and transportation.
What Is and Isn't Taxed in San Francisco
Not everything you buy in San Francisco is subject to the 8.625% rate. Groceries — unprepared food you take home to cook — are not taxed. This includes fresh produce, meat, dairy, bread, and canned goods. However, the moment food is prepared for when ready consumption, it becomes taxable. A rotisserie chicken from a grocery store deli counter is taxed. A sandwich from a restaurant is taxed. Soda and candy are also taxed because they are not considered food staples.
Prescription medications are exempt from sales tax in California. If you pick up a prescription at a pharmacy, you pay no tax on the medication itself. Over-the-counter medications like aspirin or cold medicine are taxed, because they are not prescription items. Certain medical equipment — including wheelchairs, crutches, and diabetic testing supplies — may be exempt, but the rules are specific and depend on the exact item.
Clothing and shoes under $175 are exempt from California sales tax, but San Francisco does not add any additional local tax on clothing above that threshold. This means a $200 jacket is taxed at 8.625% in San Francisco, the same as anywhere else in California.
How the Local Tax Portion Works
San Francisco's 1.375% local sales tax is separate from California's 7.25% state rate. When you see 8.625% on a receipt, you are seeing both combined. The local portion goes directly to San Francisco's city budget and funds specific services that voters approved when they passed Proposition C in 2018.
The revenue from this local tax supports public health programs, homelessness initiatives, and transportation improvements. Unlike some cities that use sales tax revenue for general city operations, San Francisco's local portion is designated for these specific areas. This means the tax you pay at checkout in San Francisco goes toward different city services than the tax you would pay in another California city.
Sales Tax on Online and Out-of-State Purchases
If you order something online from a retailer that has no physical location in California, you may not see sales tax added at checkout. However, California law requires you to pay use tax on those purchases when you file your state income tax return. In practice, most people do not report this, but the legal obligation exists.
Large online retailers like Amazon, Walmart, and Target now collect California sales tax on orders shipped to California addresses, including San Francisco. Smaller online sellers may not. If you buy from an out-of-state seller with no California presence and no sales tax is charged, you are technically responsible for reporting the purchase on your tax return, though enforcement is minimal for individual consumers.
Restaurant Meals and Prepared Food
Any food prepared for you to eat right away is taxed at 8.625%, whether you eat it in the restaurant or take it to go. This includes coffee, sandwiches, pizza, sushi, and anything from a food truck. The tax applies the same way whether you sit down or walk out with a bag.
Some people assume takeout is not taxed because they are not eating in the restaurant, but that is not how California law works. The tax is on the prepared food itself, not on the location where you consume it. A burrito from a taqueria costs 8.625% more than the listed price, whether you eat it on a bench outside or at home.
Services and Other Purchases
Sales tax in San Francisco applies to tangible goods — things you can touch and take home. Services are generally not taxed. If you pay a plumber to fix a leak, that labor is not subject to sales tax. If you pay for a haircut, there is no sales tax. However, if the service includes a tangible product, the product portion may be taxed.
For example, a haircut itself is not taxed, but if the salon sells you shampoo, that shampoo is taxed. A car repair is not taxed, but if the mechanic installs a new part, that part is taxed. The line between service and product matters for tax purposes, and it is not always obvious.
Frequently Asked Questions
Do I pay sales tax on groceries in San Francisco?
No, unprepared groceries are not taxed. Fresh produce, meat, dairy, bread, and canned goods have no sales tax. But prepared food — a rotisserie chicken, a sandwich, or anything from a deli counter — is taxed at 8.625%.
Is sales tax the same everywhere in California?
No, it varies by city and county. California's state rate is 7.25%, but local taxes range from 0.1% to 2.25% depending on where you are. San Francisco's local rate is 1.375%, making the total 8.625%. Other Bay Area cities have different rates.
Do I have to pay sales tax on clothes in San Francisco?
Clothing and shoes under $175 are exempt from California sales tax statewide. Items over $175 are taxed. San Francisco does not add any extra local tax on clothing, so the rate is the same as the rest of California.
Why is prepared food taxed but groceries are not?
California law treats unprepared food as a necessity and exempts it from tax. Prepared food is considered a service or luxury item and is taxed. This distinction applies across all of California, not just San Francisco.
Do online retailers charge San Francisco sales tax?
Large retailers like Amazon and Walmart do charge California sales tax, including San Francisco's rate, on orders shipped to California addresses. Smaller online sellers may not. If tax is not charged, you are technically responsible for reporting it on your state tax return, though this is rarely enforced for individual purchases.