Yes, California has a statewide sales tax
California charges a statewide sales tax of 7.25 percent on most retail purchases. This is the base rate that applies everywhere in the state. However, your actual sales tax rate is almost always higher because counties and local districts add their own taxes on top of the state rate.
When you buy something in California, you pay the combined rate of all the layers stacked together. A purchase in Los Angeles might be taxed at 9.5 percent, while the same item in San Francisco is taxed at 8.625 percent. The difference comes from local add-ons, not from different state rules.
Key Takeaways
- California's base sales tax is 7.25 percent, but your actual rate includes county and local district taxes added on top.
- Sales tax rates range from 7.25 percent to over 10 percent depending on which city and county you are in.
- Groceries, prescription medications, and medical equipment are generally exempt from sales tax in California.
- You pay sales tax at the point of sale for in-store purchases, and online retailers must collect it if they have a physical presence in California.
How local taxes stack on top of the state rate
The 7.25 percent state rate is just the starting point. On top of that, your county adds a tax (usually between 0.25 and 1.25 percent), and your city or local district may add another layer. Some areas have multiple local districts that each add a small percentage.
This means your total sales tax rate depends entirely on your location. San Diego County has a base combined rate of 7.75 percent. Alameda County reaches 8.625 percent in some areas. Parts of Los Angeles County go as high as 10.25 percent. The only way to know your exact rate is to check what applies to your specific address, since rates can change block by block.
The California Department of Tax and Fee Administration publishes a sales tax rate lookup tool on its website where you can enter your zip code and see the exact rate for your location.
What items are exempt from sales tax
Not everything you buy in California is subject to sales tax. Groceries — food you prepare at home — are exempt. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food, hot food, and food you eat at a restaurant or cafe are taxed.
Prescription medications are exempt when dispensed by a licensed pharmacist with a valid prescription. Over-the-counter medications like pain relievers and cold medicine are taxed. Medical equipment such as wheelchairs, crutches, and diabetic testing supplies are also exempt when prescribed by a doctor.
Clothing and shoes under $110 per item are exempt from sales tax in California. Items over that threshold are taxed. This exemption applies to the individual item, not your total purchase, so a $150 jacket is taxed but a $100 pair of shoes is not.
Sales tax on online and mail orders
Online retailers must collect California sales tax if they have a physical presence in the state — a warehouse, office, or employees working there. Major retailers like Amazon, Walmart, and Target all collect California sales tax on orders shipped to California addresses.
If you order from a small online seller with no physical presence in California, they may not collect sales tax 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 obligation exists.
Mail orders follow the same rule. If the seller has nexus in California (a legal term meaning a significant business connection), they collect tax. If they do not, you are technically responsible for use tax.
Who collects the tax and when you pay it
The retailer collects sales tax at the point of sale. When you check out at a store or online, the tax is added to your total and you pay it immediately. The retailer then sends that money to the state and local tax authorities on a regular schedule — usually monthly or quarterly depending on the business size.
You do not file a separate form or send money to the state yourself for regular purchases. The retailer handles the collection and remittance. Your receipt shows the tax amount broken down, so you can see exactly how much you paid.
If you run a business and make purchases for resale, you can provide a resale certificate to avoid paying sales tax on those items. The tax is then paid by the customer when they buy the finished product.
Sales tax on services and special situations
Most services in California are not subject to sales tax. Haircuts, car repairs, medical services, and legal advice are generally not taxed. However, some services are taxed, and the rules can be specific. For example, installation labor is sometimes taxed when bundled with a product purchase, but not always.
Rental transactions have their own rules. Renting a car is taxed. Renting an apartment or house is not. Renting equipment or tools may or may not be taxed depending on the type of equipment and how it is classified.
If you are unsure whether a specific service or transaction is taxed, the California Department of Tax and Fee Administration publishes detailed guidance on its website, or you can contact them directly.
Frequently Asked Questions
What is the sales tax rate in my city?
Your rate depends on your specific address because it combines the state rate (7.25 percent) plus your county and local district rates. Use the California Department of Tax and Fee Administration's sales tax rate lookup tool and enter your zip code to see your exact rate. Rates can vary between neighboring cities.
Do I pay sales tax on groceries?
Most groceries are exempt — bread, milk, produce, meat, and canned goods are not taxed. However, prepared foods, hot foods, candy, and food you eat at a restaurant are taxed. If you are unsure whether a specific item counts as groceries, the receipt will show whether tax was charged.
Do I have to pay sales tax on online orders from out-of-state sellers?
If the seller has no physical presence in California, they may not collect sales tax at checkout. California law says you owe use tax on those purchases, but you report it on your state income tax return. Most people do not report this, though the obligation technically exists.
Is sales tax included in the price shown on the shelf?
No. The price on the shelf or online is before tax. Sales tax is added at checkout. This is why your receipt total is higher than the advertised price.
Can I get a refund of sales tax I paid?
Generally, no. Sales tax is a final tax on the purchase. If you return an item and get a refund, the sales tax is refunded as part of that refund. If you paid tax on something you should not have, contact the retailer first — they may issue a correction.