California sales tax is a tax added to the price of most goods you buy in the state

When you buy something at a store in California, the seller adds sales tax to your bill at checkout. The base state sales tax rate is 7.25 percent, but your actual rate depends on where you live — your city and county may add their own local sales taxes on top of the state rate. The total you pay can range from 7.25 percent to over 10 percent depending on your location.

The seller collects the tax from you and sends it to the state and local tax authorities. You do not pay sales tax on everything — groceries, prescription medications, and some medical equipment are exempt. But you do pay it on clothing, electronics, restaurant meals, and most other retail purchases.

Key Takeaways

  • California's base sales tax is 7.25 percent, but your total rate includes local taxes added by your county and city, making it higher in most places.
  • Sales tax is added at the register and collected by the seller, who sends it to state and local authorities.
  • Groceries and prescription medications are not taxed, but prepared food, clothing, and most other goods are.
  • Your sales tax rate depends on your zip code, so two nearby addresses may have different rates.

How your local sales tax rate is calculated

The 7.25 percent state rate is split between the state (6.25 percent) and a mandatory local rate (1 percent). On top of that, your county and city can add their own local sales tax. Most California counties have added between 0.5 and 2.5 percent in local tax, so the total you pay at checkout is usually between 8 and 10 percent.

Your exact rate depends on your zip code. Two people shopping in different neighborhoods of the same city might pay different rates if one is in an unincorporated county area and the other is in a city with its own local tax. You can find your specific rate by entering your address on the California Department of Tax and Fee Administration website, or by asking a cashier.

What is and is not taxed in California

Sales tax does not apply to groceries — items like milk, bread, vegetables, and meat sold raw for home cooking are exempt. Prescription medications and certain medical devices are also exempt. However, prepared food is taxed: a sandwich from a deli counter, a restaurant meal, or coffee from a café all have sales tax added.

Clothing and shoes are taxed in California, as are electronics, furniture, books, and most other retail goods. Services are usually not taxed — haircuts, car repairs, and plumbing work do not have sales tax. But if you buy a product as part of a service (like paint that a contractor applies to your house), the product portion may be taxed.

When you pay sales tax and when you do not

You pay sales tax when you buy something in a physical store in California. If you order online from a California business, sales tax is usually added. If you order from an out-of-state seller, whether sales tax is added depends on whether that seller has a legal presence in California — many large online retailers now collect California sales tax, but smaller sellers may not.

You do not pay sales tax when you buy used items from a private person (like a car from a neighbor), though you may owe sales tax if you buy a used car from a dealer. You also do not pay sales tax on items you bring into California from another state, though if you later sell them in California, the buyer pays sales tax.

Sales tax on specific purchases

Gasoline has sales tax added at the pump, along with state and federal fuel excise taxes. Alcohol purchases have sales tax plus state and federal alcohol taxes. Vehicles are taxed based on the purchase price, though the rate and rules vary depending on whether you buy from a dealer or private party.

Digital goods like e-books, music downloads, and streaming subscriptions are taxed in California. Marijuana purchased from a licensed retailer has sales tax plus an additional state excise tax. If you are unsure whether a specific item is taxed, the retailer can tell you before you check out.

How sales tax affects your budget and receipts

Sales tax increases the final price you pay above the sticker price. If an item is marked $100 and your local rate is 8.5 percent, you pay $108.50. This means budgeting for purchases requires accounting for the tax — the price you see is not the price you pay. Keeping receipts is useful for tracking what you bought and what tax you paid, especially for large purchases or business expenses.

Some people track sales tax paid throughout the year because they may be able to deduct it on their federal income tax return under certain circumstances, though this is less common now. Businesses that are registered to collect sales tax must keep records of all sales and taxes collected to report to the state.

Frequently Asked Questions

What is the sales tax rate in my city?

Your rate depends on your zip code and includes the 7.25 percent state and mandatory local rate plus any additional local taxes your city and county have added. Visit the California Department of Tax and Fee Administration website and enter your address to see your exact rate, or call your city or county tax assessor's office.

Do I pay sales tax on groceries?

No. Raw groceries like produce, meat, dairy, and bread are exempt from sales tax in California. However, prepared foods — deli items, hot foods, and restaurant meals — are taxed. If you are unsure whether a specific item counts as a grocery, ask the cashier before checkout.

Why is sales tax different in different parts of California?

The state sets a base rate of 7.25 percent, but each county and city can add its own local sales tax to fund local services. This is why a purchase in one zip code may cost more in tax than the same purchase a few miles away. Your location determines your rate.

Do I pay sales tax when I order online?

If you order from a California business, sales tax is usually added. If you order from an out-of-state seller, it depends on whether that seller collects California sales tax — many large retailers do, but some smaller ones do not. The tax is shown before you complete your purchase.

Is sales tax added to restaurant bills?

Yes. All prepared food and restaurant meals have sales tax added. This is separate from any tip you leave. The tax rate is your local rate and is shown on your receipt.