California's statewide sales tax is 7.25%, but your actual rate depends on where you buy

California has a base sales tax of 7.25%, set by the state. However, most counties and cities add their own local sales taxes on top of that. The total rate you pay ranges from 7.25% to over 10%, depending on which county and city you're in when you make the purchase. The tax applies to most goods, but not to groceries, prescription medications, or most services.

The reason the rate varies is that California allows local governments to impose district taxes. A single purchase might be taxed by the state, the county, a city, and one or more special districts — each adding a small percentage. When you buy something, all of these stack together to create your final rate.

Key Takeaways

  • California's base sales tax is 7.25%, but your county and city may add local taxes that raise the total to 7.25% or higher.
  • The rate you pay depends on the location where the purchase happens, not where you live or where the business is headquartered.
  • Groceries and prescription medications are not subject to sales tax in California.
  • You can find your exact local rate by entering your address or ZIP code into the California Department of Tax and Fee Administration's online lookup tool.

How local taxes stack on top of the state rate

The 7.25% state rate is divided among three entities: the state gets 6%, the county gets 1%, and local agencies get 0.25%. On top of this, individual counties can add their own rate (usually 0.5% to 2%), and cities can add another layer (usually 0.5% to 2.5%). Some areas also have special district taxes for transportation, sales tax, or other services.

For example, in San Francisco, the combined rate is 8.625%. In Los Angeles, it's 9.5%. In some areas of the Central Valley, it can be as low as 7.25% if no local taxes are added. The variation exists because each locality votes on whether to impose additional taxes and at what rate.

The tax is collected by the seller at the point of sale and then distributed to the state, county, and local governments according to where the purchase took place. If you buy something online and it's shipped to a California address, the seller is required to collect sales tax based on your delivery address.

What is and isn't taxed in California

Most tangible goods are subject to sales tax: clothing, electronics, furniture, books, toys, and household items. Services are generally not taxed, which means you don't pay sales tax on haircuts, repairs, medical care, or legal advice. However, some services bundled with goods — like installation or delivery — may be taxed.

Groceries are exempt from sales tax in California. This includes bread, milk, vegetables, meat, and other food items you cook at home. However, prepared foods, candy, and items from a restaurant or deli counter are taxed. Prescription medications are also exempt, but over-the-counter drugs and vitamins are taxed.

Gasoline is subject to sales tax, plus California's excise tax on fuel. Vehicles are taxed, but the tax is based on the purchase price, not the vehicle's value. If you trade in a vehicle, the tax is calculated on the net amount you pay after the trade-in credit.

Finding your exact sales tax rate

The California Department of Tax and Fee Administration maintains an online sales tax rate lookup tool. You enter your ZIP code or street address, and it returns the exact combined rate for that location. This is the most reliable way to find your rate because it accounts for all local and district taxes in your area.

The lookup tool is free and takes less than a minute. You can access it through the CDTFA website. If you're a business owner or accountant, you may also need to know which local jurisdictions apply to a specific address so you can file taxes correctly — the tool provides that information as well.

If you're buying something online and want to know what tax will be charged, use the delivery address, not your billing address. The tax rate is determined by where the item is being delivered.

Sales tax on online purchases and out-of-state sellers

California requires online retailers to collect and remit sales tax on purchases delivered to California addresses, regardless of where the seller is located. This applies to large retailers like Amazon and to small businesses selling through their own websites. If a seller doesn't collect tax at checkout, you may be responsible for reporting and paying the tax yourself on your state tax return, though this is rarely enforced for individual purchases.

If you order something from out of state and pick it up in California, you owe sales tax based on the California location where you pick it up. If you order from out of state and have it shipped to a California address, California sales tax applies. The only scenario where you don't pay California sales tax is if you have the item shipped to an out-of-state address.

How sales tax differs from income tax and property tax

Sales tax is a transaction tax — you pay it when you buy something. It's separate from California's income tax, which is based on your earnings, and from property tax, which is based on the value of real estate you own. All three exist in California, and they fund different government services.

Sales tax revenue goes to state and local governments to fund schools, infrastructure, and local services. The rate you pay on any single purchase is small, but it adds up across millions of transactions. Unlike income tax, which varies based on how much you earn, sales tax is the same percentage for everyone in a given location, regardless of income.

Frequently Asked Questions

Do I pay sales tax on groceries in California?

No. Groceries — including bread, milk, vegetables, meat, and other unprepared food items — are exempt from sales tax. However, prepared foods, restaurant meals, candy, and items from a deli counter are taxed. The distinction is whether the food is ready to eat.

What's the highest sales tax rate in California?

The highest combined rate varies by year as local jurisdictions adjust their taxes, but it typically reaches 10% to 10.75% in some areas. You can find your exact rate by entering your address into the CDTFA's online lookup tool.

Do I owe sales tax if I buy something online from a seller outside California?

Yes, if it's shipped to a California address. Large online retailers are required to collect California sales tax. If a seller doesn't collect it, you may be responsible for reporting it on your tax return, though enforcement for individual purchases is rare.

Is sales tax included in the price shown on store shelves?

No. The price on the shelf is the pre-tax price. Sales tax is added at checkout. This is why your receipt total is higher than the marked price.

Do I pay sales tax on used items or secondhand purchases?

Yes, sales tax applies to used goods sold by retailers. However, if you sell a used item to another person privately (not through a business), sales tax typically does not apply to that transaction.