California sales tax is a tax on most goods you buy, added to the price at checkout

California's statewide sales tax rate is 7.25 percent. This means that on a $100 purchase, you pay an additional $7.25 in tax. However, your actual rate depends on where you live — counties and cities 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.

Sales tax is collected by the seller at the point of sale and sent to the state. You do not file a separate form or send money directly to the California Department of Tax and Fee Administration (CDTFA). The tax appears on your receipt as a line item, and the total price you pay includes it.

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.
  • Sales tax applies to most goods but not to groceries, prescription medications, or most services.
  • The seller collects and remits the tax — you do not file paperwork or send money to the state yourself.
  • Your receipt shows the tax amount separately, and the final total you pay at checkout includes it.

How the tax rate is built in your area

The 7.25 percent state rate is split into three parts: 6 percent goes to the state general fund, 1.125 percent goes to counties, and 0.125 percent goes to local transit districts. On top of this, your county adds its own rate (ranging from 0 to 2.25 percent), and your city may add an additional rate (ranging from 0 to 1.5 percent).

This means a resident of Los Angeles County pays a different rate than a resident of San Francisco County, and someone in an unincorporated area pays a different rate than someone in a city within that county. To find your exact rate, you can enter your address on the CDTFA website or call your local tax assessor's office. Your receipt also shows the rate applied to that transaction.

What items are taxed and what are not

Most tangible goods — clothing, electronics, furniture, books, toys — are subject to sales tax. However, certain categories are exempt. Groceries intended for home consumption (bread, milk, vegetables, meat) are not taxed. Prescription medications are not taxed. Over-the-counter medicines like aspirin or cold medicine are taxed.

Most services are not taxed. A haircut, a doctor's visit, or labor charges are generally not subject to sales tax. However, some services that result in a tangible product — like a restaurant meal or a custom-made item — are taxed. Prepared food sold hot or ready-to-eat is taxed, but cold prepared food (like a deli sandwich you take home) may not be, depending on how it is sold.

Digital goods and services have their own rules. Downloaded software, streaming subscriptions, and digital books are generally taxed. If you are unsure whether a specific item is taxed, ask the cashier or check the CDTFA website.

When you pay sales tax versus when you do not

You pay sales tax at the point of purchase for in-store transactions. When you buy online from a California retailer, sales tax is added at checkout based on your delivery address. If you order from an out-of-state retailer and the item is shipped to you in California, you may or may not see sales tax charged — this depends on whether that retailer has a legal obligation to collect it.

If you buy something out of state and bring it into California, you do not pay California sales tax at the time of purchase. However, California law requires you to pay "use tax" on those items — a tax equal to the sales tax rate in your area. In practice, most individuals do not file use tax forms for personal purchases, though the legal obligation exists.

Who collects the tax and where it goes

The business selling you the item collects sales tax and holds it temporarily. That business then files a return with the CDTFA, usually monthly or quarterly depending on the volume of sales. The CDTFA distributes the revenue: the state keeps its portion, counties receive their portion, and cities receive theirs.

Businesses are responsible for remitting the tax on time. If a business fails to collect or remit sales tax, the CDTFA can audit them and impose penalties. As a consumer, you have no filing obligation — the tax you see on your receipt is the end of your involvement.

Sales tax on specific purchases

Restaurant meals and takeout food are taxed. Alcohol (beer, wine, spirits) is taxed at the regular sales tax rate, plus an additional excise tax that varies by type. Gasoline is taxed, though the tax is often hidden in the pump price rather than shown separately on your receipt.

Clothing and shoes are taxed, with no exemption for children's clothing. Used items sold by individuals are generally not subject to sales tax, but used items sold by a business are taxed. Vehicle purchases have their own rules — sales tax is calculated on the purchase price and collected by the Department of Motor Vehicles when you register the vehicle, not by the dealer at sale.

Frequently Asked Questions

Why is my sales tax rate different from the 7.25 percent I heard about?

The 7.25 percent is only the state portion. Your county and city add local taxes on top, which is why most Californians pay between 8 and 10.5 percent. Enter your address on the CDTFA website to see your exact rate.

Do I have to pay sales tax if I buy something online?

If you buy from a California retailer, sales tax is added at checkout based on your delivery address. If you buy from an out-of-state retailer, it depends on whether that retailer collects California tax — many large retailers do, but smaller ones may not.

Are groceries taxed in California?

Most groceries are not taxed — milk, bread, vegetables, and meat for home consumption are exempt. However, prepared foods, hot foods, and items sold ready-to-eat are taxed. Candy and soda are also taxed.

What happens if a business does not charge me sales tax?

The business is still legally required to remit the tax to the state, even if they did not collect it from you. If they fail to do so, the CDTFA can audit them. As a customer, you are not responsible for the business's failure to collect.

Do I owe California tax on items I bought out of state?

California law requires you to pay use tax on out-of-state purchases at the same rate as sales tax. However, enforcement on individual personal purchases is rare. If you bought a vehicle or other high-value item out of state, you will owe use tax when you register it in California.