California's sales tax rate and what it covers

California's statewide sales tax rate is 7.25 percent. This is the base rate that applies everywhere in the state. However, most counties and cities add their own local sales taxes on top of that, so your actual rate depends on where you make the purchase. Local rates typically range from 0.25 percent to 1.5 percent, which means you might pay anywhere from 7.25 percent to 8.625 percent or higher depending on your location.

Sales tax applies to most goods you buy in stores — clothing, electronics, groceries (with exceptions), household items, and furniture. It does not apply to services like haircuts, car repairs, or medical visits. Food bought at a grocery store is generally not taxed, but prepared food from restaurants, bakeries, and deli counters is taxed. Some items like prescription medications are also exempt.

Key Takeaways

  • California's base sales tax is 7.25 percent, but your actual rate is higher because counties and cities add local taxes on top.
  • Sales tax applies to most goods but not to groceries, prescription drugs, or services like haircuts and medical care.
  • You pay sales tax at the point of sale in stores, and online retailers must collect it if they have a physical presence in California.
  • The tax is added to the price at checkout — it is not included in the displayed price tag.

How local sales tax rates work in California

Each county in California can impose a sales tax, and cities within those counties can add their own tax on top of that. This layering is why the rate varies so much across the state. For example, Los Angeles County has a base county rate of 0.5 percent, and individual cities within the county may add another 0.5 percent to 1 percent. San Francisco has a combined rate of 8.625 percent, while some rural areas may be closer to 7.25 percent.

To find your exact local rate, you need to know both your county and city. The California Department of Tax and Fee Administration publishes a complete list of rates by location. If you are shopping online or ordering delivery, the retailer should charge the tax rate for the address where the item is being delivered, not where you live or where the business is located.

What items are taxed and what are not

Most physical goods are subject to sales tax in California. This includes clothing, shoes, toys, books, electronics, furniture, and appliances. The tax applies whether you buy in person or online, though online retailers must collect it only if they have a physical presence in California or meet certain sales thresholds.

Several categories are exempt from sales tax. Groceries — unprepared food you cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods are taxed: a sandwich from a deli counter, a rotisserie chicken, or a bakery item all have tax added. Prescription medications are exempt, but over-the-counter drugs like cold medicine or pain relievers are taxed. Medical services, dental work, haircuts, and car repairs are not subject to sales tax because they are services, not goods.

When and where you pay sales tax

You pay sales tax at the point of sale — when you check out at a store or complete an online purchase. The tax is calculated on the subtotal and added to your bill. Unlike some states, California does not include sales tax in the displayed price; the price tag shows only the item cost, and tax is added at checkout.

If you buy something in one California city and have it shipped to another, the tax rate applied is the rate where it is being delivered. If you buy online from an out-of-state retailer and have it shipped to California, the retailer must collect California sales tax if they have a warehouse, office, or other physical location in the state. If they do not, you may owe use tax when you file your state tax return, though most individuals do not report this.

How sales tax revenue is used in California

Sales tax revenue is split between the state and local governments. The state keeps a portion for its general fund, and the rest goes to counties and cities. Local governments use their share for schools, public safety, roads, libraries, and other services. Some sales taxes are dedicated to specific purposes — for example, a city might have a quarter-cent tax that goes only to transit or homelessness services.

When you see a sales tax rate higher than 8.625 percent in California, the extra amount usually comes from a voter-approved local measure. These measures are temporary or permanent depending on how they were written. You can find out what your local taxes fund by checking your city or county government website.

Frequently Asked Questions

Why is my sales tax rate different from the statewide 7.25 percent?

The statewide rate is only the base. Your county and city both add their own taxes on top of it. To find your exact rate, enter your address into the California Department of Tax and Fee Administration's rate lookup tool, or ask a cashier at a local store.

Do I pay sales tax on groceries?

Unprepared groceries — items you take home and cook — are not taxed. This includes produce, meat, dairy, bread, and canned goods. Prepared foods like deli sandwiches, rotisserie chicken, and bakery items are taxed. Hot food is always taxed, even if you buy it at a grocery store.

Do online retailers have to collect California sales tax?

Yes, if they have a physical presence in California or meet certain sales thresholds. Most large online retailers now collect California sales tax. If a retailer does not collect it, you may owe use tax on your state return, though enforcement for individual purchases is rare.

Is sales tax included in the price shown on the shelf?

No. California price tags show only the item cost. Sales tax is calculated and added when you check out. This is why your receipt total is higher than the displayed price.