San Francisco's current sales tax rate

San Francisco's sales tax rate is 8.625%. This rate applies to most goods and some services you buy within the city limits. The rate has been in place since 2018, when voters approved Proposition C, a gross receipts tax on large businesses that funded homelessness services.

The 8.625% figure combines the California state sales tax (7.25%) with San Francisco's local sales tax (1.375%). When you see a price tag in a San Francisco store, the tax added at checkout will be 8.625% of the subtotal, unless the item is exempt.

If you buy something just outside San Francisco—in Daly City, Oakland, or another nearby city—the rate will be different. Each city and county sets its own local rate on top of the state base, so rates vary by location.

Key Takeaways

  • San Francisco's sales tax is 8.625%, made up of California's 7.25% state rate plus San Francisco's 1.375% local rate.
  • Groceries, prescription medications, and most medical equipment are exempt from sales tax in San Francisco.
  • Prepared food, restaurant meals, and takeout are taxed at the full 8.625% rate.
  • The tax applies to most tangible goods and some services, but not to rent, utilities, or professional services like haircuts or legal advice.

What is and isn't taxed in San Francisco

Not everything you buy is subject to the 8.625% rate. California law exempts certain categories statewide, and San Francisco follows those exemptions. Groceries—unprepared food you cook at home—are not taxed. This includes produce, meat, dairy, bread, and canned goods. The exemption applies whether you shop at a supermarket, farmers market, or corner store.

Prescription medications are also exempt. If a pharmacist fills a prescription, there is no sales tax. Over-the-counter medications like aspirin or cold medicine are taxed, because they do not require a prescription.

Prepared food is taxed. If you buy a sandwich from a deli, a meal at a restaurant, or coffee from a café, you pay 8.625% tax. Takeout and delivery orders are taxed the same way as eating in. Hot food prepared for immediate consumption is always taxed, even if you take it home.

Medical equipment varies by type. Wheelchairs, walkers, and oxygen equipment are typically exempt. Items like bandages, heating pads, and blood pressure monitors are taxed. If you are unsure whether a specific medical item is exempt, ask the retailer or check the receipt—it will show whether tax was charged.

Services that are and aren't taxed

Sales tax applies to goods—physical items you can touch and take home. Most services are not taxed in California, including San Francisco. Haircuts, dental work, legal advice, and accounting services are not subject to sales tax. You pay the service provider's fee, and that is the total.

However, some services blur the line. If a salon sells you shampoo or conditioner, that product is taxed. If a barber sells you beard oil, that is taxed. The service itself (cutting hair) is not; the product is.

Repair services are generally not taxed either. If you take your phone to a repair shop and they replace the screen, you pay for the labor and the part, but no sales tax is added. If the shop sells you a phone case at the same time, the case is taxed.

How sales tax is calculated on your receipt

When you check out, the cashier or register calculates 8.625% of the subtotal (the price before tax) and adds it to your bill. If you buy a shirt for $40, the tax is $3.45, and your total is $43.45. If you buy groceries for $50, there is no tax added, and your total is $50.

Online purchases follow the same rule if the seller has a physical location in California or meets certain sales thresholds. Most major online retailers now collect San Francisco sales tax on orders shipped to San Francisco addresses. Smaller sellers may not, though California law requires you to report and pay tax on untaxed online purchases when you file your state income tax return (most people do not do this, but it is technically required).

Some receipts show the tax separately; others include it in the total. Either way, the amount of tax you pay is the same: 8.625% of taxable items.

Differences between San Francisco and nearby areas

If you cross into another city or county, the sales tax rate changes. Oakland's rate is 8.625%—the same as San Francisco. Daly City is 8.625%. But San Mateo is 8.375%, and Marin County ranges from 8.375% to 8.625% depending on the city. Alameda (outside Oakland) is 8.625%.

The difference is usually small—less than a quarter of a percent—but it adds up on large purchases. A $1,000 item taxed at 8.375% costs $83.75 in tax; at 8.625%, it costs $86.25. The difference is $2.50.

If you live in San Francisco but work or shop in another city, you pay the tax rate of the city where you make the purchase, not where you live. The retailer's location determines the rate.

Who collects and where the money goes

Retailers collect sales tax at the point of sale and send it to the California Department of Tax and Fee Administration (CDTFA). The CDTFA splits the revenue: the state keeps 7.25%, and San Francisco keeps 1.375%. San Francisco's portion funds city services, including public transit, libraries, parks, and homelessness programs.

Retailers are responsible for collecting the correct amount and filing returns with the CDTFA, usually monthly or quarterly depending on their sales volume. If a retailer fails to collect or remit tax, the CDTFA can audit them and impose penalties.

Frequently Asked Questions

Do I pay sales tax on groceries at Whole Foods or other supermarkets?

No, not on groceries. Unprepared food—produce, meat, dairy, bread, frozen vegetables, canned goods—is exempt. But prepared foods sold in the deli section, hot bar, or bakery are taxed. If you buy a rotisserie chicken or a prepared salad, you pay tax. If you buy raw chicken or lettuce, you do not.

Is tax charged on clothing and shoes?

Yes. Clothing and shoes are taxed at 8.625% in San Francisco. There is no clothing exemption in California, unlike some other states.

What about tax on gym memberships or streaming services?

No. Memberships and subscriptions are services, not goods, and are not subject to sales tax in California. You pay the membership or subscription fee with no tax added.

If I buy something online from a company with no store in California, do I owe tax?

Most large online retailers now collect and remit sales tax on orders shipped to San Francisco. Smaller sellers may not. Technically, you owe use tax (the equivalent of sales tax) on untaxed purchases, but enforcement is rare for individual buyers. The retailer's policies determine whether tax is charged at checkout.

Does sales tax apply to hotel rooms in San Francisco?

No sales tax, but San Francisco charges a separate hotel tax (also called a transient occupancy tax or TOT) of 14% on hotel stays. This is different from and in addition to any service charges the hotel adds. The hotel tax funds tourism and cultural programs.