California's statewide sales tax is 7.25 percent
California's base sales tax rate is 7.25 percent. This is the minimum you will pay on most purchases at the register. However, your actual rate is almost always higher because counties and local districts add their own taxes on top of the state rate.
The 7.25 percent breaks down as follows: 6 percent goes to the state, and 1.25 percent is split among counties and local transit districts. When you buy something in California, you pay the state portion plus whatever your county and city have added.
This means the total sales tax you see on your receipt depends entirely on where you are in the state. A purchase in one county will cost a different amount in tax than the same purchase across the county line.
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.
- Total sales tax rates in California range from 7.25 percent to over 10 percent depending on your location.
- You can find your exact local rate by entering your zip code on the California Department of Tax and Fee Administration website.
- Food for home consumption is generally not taxed, but prepared food, candy, and soda are taxed at the full rate.
- Online purchases are taxed at the rate of the address where the item is shipped, not where you live or where the seller is located.
How local taxes add to the state rate
Counties in California are allowed to add a sales tax on top of the state's 7.25 percent. Most counties add between 0.5 and 2.5 percent. Some counties add more than one tax — for example, a county tax and a city tax and a transit district tax — and these stack on top of each other.
The result is that your total sales tax rate depends on your exact location. If you live in a city with multiple local taxes, your rate could be 9 percent or higher. If you live in an area with fewer local taxes, you might pay 7.5 or 8 percent. The only way to know your exact rate is to look it up by zip code or address.
The California Department of Tax and Fee Administration maintains a searchable database of sales tax rates by location. You can enter your zip code and see the exact rate that applies to purchases in your area.
What is and is not taxed in California
Not everything you buy is subject to sales tax. Food for home consumption — groceries you cook yourself — is not taxed. This includes bread, milk, vegetables, meat, and other raw or uncooked food items. However, prepared food is taxed. If you buy a sandwich from a deli, a rotisserie chicken, or food from a restaurant, you pay sales tax.
Candy and soda are taxed even though they are food items. The rule is that if the food is ready to eat or is a sweetened drink, it is taxable. Bottled water is not taxed, but soda is. A bag of chips from a grocery store is taxed, but a loaf of bread is not.
Clothing and shoes under $110 are not taxed in California. Items over that threshold are taxed in full. Prescription medications are not taxed, but over-the-counter drugs and vitamins are. Services like haircuts, repairs, and labor are generally not subject to sales tax, though some services have their own specific rules.
Sales tax on online and out-of-state purchases
When you order something online and have it shipped to a California address, you pay sales tax at the rate of the zip code where it is being delivered. You do not pay the rate where the seller is located or where you live if those are different. The tax is based on the destination address.
Most large online retailers now collect California sales tax automatically at checkout. Smaller sellers may not, and if they do not, you may be responsible for reporting the tax yourself on your state income tax return, though this is rarely enforced for individual purchases.
If you order from a seller outside California and have the item shipped to California, California sales tax still applies. The only exception is for items that are not taxable in California — like groceries — which remain untaxed even if shipped from out of state.
Finding your exact sales tax rate
To find the exact sales tax rate for your location, visit the California Department of Tax and Fee Administration website and use their sales tax rate lookup tool. Enter your zip code, city, or street address, and the tool will show you the total rate that applies to that location.
The rate shown includes the state rate plus all county and local taxes. This is the rate you will see on your receipt when you make a purchase in that area. If you live near a county line or a city boundary, rates can change significantly within a short distance.
Sales tax rates change periodically when counties or cities add or remove local taxes. If you are checking a rate you looked up months ago, it is worth checking again to make sure it has not changed.
Why California has so many different rates
California allows counties and cities to set their own local sales taxes to fund schools, transportation, and other local services. This is why the state has over 600 different sales tax rates across its regions. Each combination of county, city, and special district creates a different total rate.
Some areas have added sales taxes specifically to fund transit systems, homeless services, or school improvements. Others have added them to replace revenue lost from other sources. The result is a patchwork of rates that can vary by a full percentage point or more between neighboring cities.
This system means that the same item costs different amounts in tax depending on where you buy it. A $100 purchase in one city might be taxed at 8.5 percent, while the same purchase five miles away in another city might be taxed at 9.5 percent.
Frequently Asked Questions
What is the highest sales tax rate in California?
Some areas of California have sales tax rates above 10 percent when all local taxes are combined. The exact highest rate changes as cities and counties adjust their taxes, but rates of 10.25 percent or higher exist in certain locations. Check your specific zip code to see your local rate.
Do I pay sales tax on groceries in California?
No, groceries for home consumption are not taxed. This includes fresh produce, meat, dairy, bread, and other uncooked food items. However, prepared food from a deli or restaurant, candy, soda, and hot beverages are all taxed at the full rate.
Is sales tax the same everywhere in California?
No. The base state rate is 7.25 percent, but counties and cities add their own taxes on top. Total rates range from 7.25 percent to over 10 percent depending on your location. You can look up your exact rate by zip code on the California Department of Tax and Fee Administration website.
Do I have to pay California sales tax on online purchases?
Yes. Online purchases shipped to a California address are taxed at the rate of the delivery zip code. Most major retailers collect this tax automatically at checkout. The tax applies regardless of where the seller is located.
When did California's sales tax rate change last?
California's base state rate of 7.25 percent has been in place since 1992. However, local rates change frequently as counties and cities adjust their taxes. Check your local rate periodically to see if it has changed in your area.