California's base sales tax rate and how it works
California's statewide sales tax rate is 7.25 percent. This is the floor — the minimum you pay on most purchases. However, your actual rate depends on where you buy the item. Counties and cities in California can add their own local sales taxes on top of the state rate, so the total you pay ranges from 7.25 percent to over 10 percent depending on your location.
When you buy something in a store or online, the retailer collects the tax at the point of sale. The tax applies to tangible goods — clothing, groceries, electronics, furniture — but not to services like haircuts, repairs, or professional fees. Some items are exempt entirely, like prescription medications and certain foods.
The tax you see on your receipt goes to three places: the state keeps a portion, your county keeps a portion, and your city keeps a portion. This split is why two stores five miles apart can have different tax rates.
Key Takeaways
- California's statewide sales tax is 7.25 percent, but your actual rate is higher because counties and cities add local taxes on top.
- Total sales tax rates in California range from 7.25 percent to over 10 percent, depending on which county and city you are in.
- You can find your exact local rate by entering your address on the California Department of Tax and Fee Administration website or by asking a retailer.
- Sales tax applies to most physical goods but not to services, and some items like prescription drugs and certain foods are exempt.
- Online purchases are subject to the same sales tax as in-store purchases if the retailer has a physical presence in California.
Local tax rates vary significantly by county and city
The 7.25 percent state rate is just the starting point. Most California counties add between 0.5 and 2.5 percent in county tax. Many cities add another 0.5 to 1.5 percent in city tax. Some special districts — like transit authorities or public safety zones — add even more.
Los Angeles County has a base combined rate of 9.5 percent in most areas, though some cities within the county go higher. San Francisco is 8.625 percent. San Diego County ranges from 7.75 to 8.25 percent depending on the city. Rural counties like Alpine or Mariposa may stay closer to the state minimum.
The only way to know your exact rate is to look it up by your specific address. The California Department of Tax and Fee Administration maintains a searchable database on its website where you enter your street address and it returns your precise combined rate. You can also call a local retailer or your city's tax assessor's office.
What items are taxed and what are exempt
Sales tax applies to most things you buy in a store: clothing, shoes, electronics, furniture, toys, books, and household goods. It also applies to prepared food — a sandwich from a deli counter or a meal at a restaurant. Gasoline is taxed, as are vehicle parts and repairs.
Some purchases are exempt from sales tax in California. Prescription medications are not taxed. Most unprepared groceries — raw vegetables, meat, dairy, bread from the bakery section — are not taxed, though hot prepared foods are. Medical devices prescribed by a doctor are typically exempt. Certain services are never taxed: haircuts, dental work, medical visits, car repairs, and plumbing work.
The line between taxed and exempt can be confusing. A candy bar is taxed. A loaf of bread from the grocery shelf is not. A hot rotisserie chicken from the deli is taxed; a raw chicken is not. If you are unsure whether something is taxed, ask the cashier before you buy.
How to find your exact sales tax rate
The California Department of Tax and Fee Administration publishes a sales tax rate lookup tool on its website. Go to cdtfa.ca.gov, find the "Sales Tax Rates" section, and enter your street address. The tool returns your combined state, county, and city rate, plus any special district taxes that apply to your location.
If you do not have internet access, you can call your city's tax assessor's office or your county assessor's office. They can tell you the rate for your address over the phone. You can also ask a retailer — they are required to know the rate for their location and can tell you what you will pay.
Keep in mind that rates change occasionally when cities or counties pass new tax measures. If you looked up your rate more than a year ago, it is worth checking again, especially if you have moved or if you notice your receipt shows a different rate than you expected.
Sales tax on online purchases
Online retailers must collect California sales tax on purchases shipped to California addresses if the retailer has a physical presence in the state — a warehouse, office, or store location. Large online retailers like Amazon, Walmart, and Target all collect California sales tax because they operate distribution centers here.
The tax rate applied to your online purchase is based on the delivery address, not where the retailer is located. If you order something to be delivered to an address in San Francisco, you pay San Francisco's rate. If you order to a rural county, you pay that county's rate.
Small online retailers without a California location may not collect sales tax at checkout. However, California law requires you to pay "use tax" — which is essentially the same as sales tax — on purchases where no sales tax was collected. In practice, most people do not report use tax on individual purchases, though it is technically owed.
Special situations and exceptions
Resale certificates allow businesses to buy goods without paying sales tax if they plan to resell those items. If you are a retailer, you can provide a resale certificate to your supplier and avoid tax on inventory purchases. The tax is then collected when the customer buys the finished product.
Some nonprofits and government agencies are exempt from sales tax on certain purchases. If you work for a may have access to organization, you may be able to provide an exemption certificate to avoid tax on specific items. The rules vary by organization type and purchase category.
Out-of-state purchases brought into California are subject to use tax, though this is rarely enforced for personal items. If you buy a car out of state and register it in California, you will owe use tax at registration. If you move to California and bring household goods, use tax technically applies but is not collected in practice.
Frequently Asked Questions
What is the highest sales tax rate in California?
The highest combined rates are in the 10 to 10.75 percent range, found in some cities in Los Angeles, Alameda, and Kern counties. The exact highest rate changes as cities adjust their local taxes. Your specific address determines which rate applies to you.
Do I pay sales tax on groceries?
Unprepared groceries — raw meat, vegetables, dairy, bread, cereal — are not taxed. Hot or prepared foods are taxed. Candy, soda, and other snacks are taxed. If you are unsure whether a specific item is taxed, the cashier can tell you before you buy.
Why do two stores near each other have different tax rates?
City boundaries matter. Two stores that are physically close but in different cities will have different combined rates because they pay different city taxes. Even stores on opposite sides of a street can have different rates if the street is a city boundary.
Do I owe sales tax on items I buy online from out-of-state retailers?
If the retailer has no California presence, they do not collect sales tax. You technically owe use tax on the purchase, but this is rarely enforced for individual items. Large retailers like Amazon collect California sales tax regardless of where they are based.
Can I get a refund of sales tax I already paid?
Sales tax refunds are rare. You cannot get a refund simply because you paid tax. However, if a retailer overcharged you or charged tax on an exempt item by mistake, you can ask them for a refund. Keep your receipt as proof of the error.