California's base sales tax rate is 7.25%, but your actual rate depends on your county and city

California sets a statewide sales tax floor of 7.25%, but that is not what you pay at checkout. Your county and city can add their own sales taxes on top of the state rate. The total you see on your receipt is the combination of all three layers. This means a $100 purchase in San Francisco costs a different amount than the same purchase in Los Angeles or a small town in the Central Valley.

The rate you pay is determined by where the sale happens, not where you live. If you buy something in a store, the tax is based on that store's location. If you order online and the seller has a physical location or warehouse in California, California tax applies to your order.

Key Takeaways

  • California's statewide base rate is 7.25%, but county and city taxes stack on top of it, making your total rate between 7.25% and 10.75% depending on location.
  • The tax rate that applies is the one where the sale physically occurs or where the seller has a California location, not where you live.
  • Different cities within the same county can have different total rates because cities add their own local tax on top of the county rate.
  • Groceries, prescription medications, and some medical equipment are exempt from California sales tax, but prepared foods and non-prescription items are not.

How the three layers of California sales tax work

The 7.25% state rate is split into two parts: 6% goes to the state general fund, and 1.25% goes to counties. On top of that, your county adds its own rate (usually between 0% and 2.25%), and then your city adds its own rate (usually between 0% and 1.75%). These stack together, not replace each other.

For example, in San Francisco, the state contributes 7.25%, the county adds 0.625%, and the city adds 1.5%, for a total of 9.375%. In Los Angeles, the state is 7.25%, the county adds 0.5%, and the city adds 2.25%, for a total of 10%. In some smaller counties with no additional local tax, you pay exactly 7.25%.

You can find your exact local rate by entering your address on the California Department of Tax and Fee Administration website, or by asking a cashier at a store in your area. The rate does not change throughout the year unless your city or county votes to change it, which happens rarely.

What is and is not taxed in California

Groceries are not taxed in California. This includes bread, milk, eggs, vegetables, meat, and other food you prepare at home. However, prepared foods — anything sold hot or ready to eat — are taxed. A sandwich from a deli counter is taxed; a loaf of bread from the shelf is not.

Prescription medications are not taxed. Over-the-counter medications like aspirin or cold medicine are taxed. Medical equipment prescribed by a doctor, such as wheelchairs or diabetic testing supplies, is not taxed if you have a prescription.

Clothing and shoes are not taxed in California, with a few exceptions. Items that cost more than $110 per piece are taxed. So a $100 shirt is tax-free, but a $150 coat is taxed. Accessories like belts, hats, and jewelry are taxed regardless of price.

Services are generally not taxed. Haircuts, car repairs, and plumbing work are not subject to sales tax. However, if you buy a product as part of that service — like a haircut plus a $20 bottle of shampoo — the shampoo is taxed.

Sales tax on online and out-of-state purchases

If you order from an out-of-state seller online, California sales tax applies only if that seller has a physical presence in California — a store, warehouse, office, or employee. If the seller has no California location, no California sales tax is owed at checkout. However, you may owe use tax on that purchase when you file your California tax return, though most individuals do not report this.

If you order from a California seller or a national retailer with California warehouses, California sales tax is added based on the delivery address. Amazon, Walmart, Target, and most major retailers collect California tax on orders shipped to California addresses.

How to find your exact sales tax rate

The California Department of Tax and Fee Administration maintains a sales tax rate lookup tool on its website. Enter your street address, city, and ZIP code, and it returns your exact combined rate. This tool is updated when cities or counties change their rates.

You can also call your city or county assessor's office and ask for the current sales tax rate. Local tax collectors and business license offices also have this information. If you are shopping in a store, the receipt shows the rate that was applied.

Why rates vary so much between nearby cities

Cities and counties use sales tax revenue to fund local services: roads, schools, police, fire departments, and public transit. When a city needs more revenue, it can vote to increase its local sales tax rate. This is why a city 10 miles away can have a significantly different rate.

Some cities have voted to add temporary sales tax increases for specific projects — a new library, road repairs, or transit improvements. These temporary rates eventually expire, which is why rates can go down as well as up. A few counties have no additional county tax at all, keeping the rate at the state minimum of 7.25%.

Frequently Asked Questions

Is there a sales tax on groceries in California?

No. Groceries — unprepared food you cook at home — are not taxed. This includes produce, meat, dairy, bread, and canned goods. Prepared foods like deli sandwiches, hot pizza, or restaurant takeout are taxed at your local rate.

Do I pay sales tax on clothes and shoes?

Most clothing and shoes under $110 per item are not taxed in California. Items over $110 are taxed. Accessories like belts, hats, scarves, and jewelry are always taxed, regardless of price.

What is the highest sales tax rate in California?

The highest combined rate is 10.75%, found in a few locations in the state. Most cities fall between 8% and 9.5%. You can check your specific rate by entering your address on the California Department of Tax and Fee Administration website.

Do I owe California sales tax on items I order from out-of-state websites?

Only if the seller has a physical location in California. If an out-of-state seller has no California store or warehouse, no California sales tax is collected at checkout. Major retailers like Amazon and Walmart have California locations, so they collect tax on California orders.

Can a city change its sales tax rate?

Yes, but it requires a vote by the city council or, in some cases, approval by voters. Rate changes are not automatic and do not happen frequently. When they do occur, the new rate takes effect on a date set by the city, usually the first day of a month.