California sales tax is a tax added to the price of most goods and some services when you buy them

When you buy something in California, the store adds a percentage to the price at checkout. That percentage is the sales tax. The state sets a base rate, but your county or city may add more on top of it. The total rate you pay depends on where you are in California — it ranges from about 7.25% to over 10% depending on location.

The store collects this tax from you and sends it to the state and local governments. You do not send in sales tax yourself as a regular shopper. The tax appears on your receipt as a separate line item, and the final total you pay includes it.

Key Takeaways

  • California's base sales tax rate is 7.25%, but your actual rate depends on your county and city, ranging from 7.25% to over 10%.
  • Sales tax applies to most physical goods and some services, but groceries, prescription medications, and certain medical equipment are usually exempt.
  • The store collects and remits the tax to the state — you do not file sales tax forms as a buyer.
  • Online purchases from out-of-state sellers may or may not have California sales tax added, depending on whether the seller has a physical presence in the state.

How the California sales tax rate is built

The state of California charges 7.25% sales tax on most purchases. On top of that, your county adds its own rate, and your city may add another layer. A city in Los Angeles County, for example, might have a total rate of 9.5% or higher because the county adds 1.25% and the city adds another percentage.

To find your exact rate, you need to know your city and county. The California Department of Tax and Fee Administration publishes a lookup tool on its website where you enter your address and see the combined rate that applies to you. Rates change when local governments pass new tax measures, so the rate in your area today may differ from last year.

What items have sales tax and what does not

Most physical goods — clothing, electronics, furniture, toys — are taxed. Most services are not. A haircut, a doctor visit, or car repair typically do not have sales tax added. However, some services do get taxed: hotel stays, admissions to events, and certain repairs to tangible property can be taxable depending on the specifics.

Several categories of goods are exempt from sales tax in California. Groceries — unprepared food you cook at home — are not taxed. Prescription medications are exempt. Medical equipment like wheelchairs, walkers, and hearing aids are usually exempt. Seeds and plants you buy to grow food are not taxed. If you are unsure whether a specific item is taxed, the receipt will show whether tax was charged.

Sales tax on online and out-of-state purchases

If you buy from an online retailer that has a warehouse, office, or other physical presence in California, that retailer must collect California sales tax from you at checkout. Large retailers like Amazon, Walmart, and Target all have California operations, so they charge California sales tax on orders shipped to California addresses.

If you buy from a small out-of-state seller with no California presence, they may not charge you sales tax at checkout. However, California law requires you to pay "use tax" on those purchases — it is the same rate as sales tax, and you are supposed to report it when you file your state income tax return. In practice, most individual shoppers do not report use tax, but the legal obligation exists.

Who collects and where the money goes

The retailer or seller collects sales tax from you and holds it temporarily. They then send it to the California Department of Tax and Fee Administration, usually monthly or quarterly depending on their sales volume. The state keeps the base 7.25% and distributes the local portions to counties and cities based on where the sale occurred.

The money funds schools, local infrastructure, public safety, and other government services. When you see a sales tax increase on a ballot measure, it usually specifies which services the new tax will fund — transit, homelessness programs, parks, or schools.

Sales tax on specific situations

If you buy something and return it, the store refunds the sales tax along with the purchase price. If you exchange an item for another of equal value, no additional tax is owed. If you exchange for something more expensive, you pay sales tax only on the difference.

Resale certificates allow businesses to buy goods without paying sales tax if they plan to resell them. A clothing store, for example, does not pay sales tax when it buys inventory from a wholesaler — it only collects tax when the customer buys the item in the store. If you are starting a business, you can apply for a resale certificate through the California Department of Tax and Fee Administration.

Frequently Asked Questions

How do I find out what sales tax rate applies to my address?

Visit the California Department of Tax and Fee Administration website and use their sales tax rate lookup tool. Enter your street address, city, and ZIP code, and it will show you the combined state, county, and city rate for that location. Rates can vary even within the same city depending on specific boundaries.

Do I have to pay sales tax on everything I buy?

No. Groceries, prescription drugs, and certain medical equipment are exempt. Most services like haircuts and doctor visits are not taxed. Your receipt will show what was taxed and what was not. If you think something was taxed incorrectly, ask the store to explain the charge.

What happens if I buy something online from another state?

If the seller has no California location, they may not charge you sales tax. You are technically required to pay California use tax on that purchase, but most individual shoppers report it only if they file a state tax return and remember to include it. The amount is the same as the sales tax rate for your location.

Can I get a refund of sales tax I already paid?

If you return an item within the store's return window, you get the sales tax back as part of your refund. If you believe sales tax was charged incorrectly on a purchase, contact the store first. For broader questions about sales tax refunds or disputes, contact the California Department of Tax and Fee Administration.

Does sales tax apply to used items?

Yes, sales tax applies to used goods sold by retailers, including used cars, used furniture, and used electronics. The tax is based on the sale price, not the original price. Private sales between individuals typically do not involve sales tax, but sales through a dealer or reseller do.