California has a statewide sales tax of 7.25 percent, but your actual rate depends on your county and city
California's base sales tax rate is 7.25 percent, set by the state. However, most counties and cities add their own local sales taxes on top of that amount. Your total sales tax rate — what you actually pay at checkout — is the combination of state tax plus all local taxes that explore to your address. This means a purchase in San Francisco will have a different tax rate than the same purchase in Los Angeles or a rural area of the Central Valley.
The state collects all sales tax revenue and then distributes it to counties and cities according to where the sale occurred. You do not file sales tax yourself as a consumer; the retailer collects it at the point of sale and sends it to the state.
Key Takeaways
- California's statewide sales tax is 7.25 percent, but local additions mean most people pay between 7.25 and 10.5 percent depending on their county and city.
- The tax applies to most tangible goods, but groceries, prescription medications, and medical devices are generally exempt.
- Services are usually not taxed in California, though some specific services like repairs and installations can be.
- You can find your exact local rate by entering your address on the California Department of Tax and Fee Administration website or asking a retailer.
How local taxes stack on top of the state rate
When you buy something in California, the sales tax you pay includes three layers: the state rate (7.25 percent), a county rate, and sometimes a city rate. Not every county and city adds tax, but most do. For example, San Francisco County adds 1.5 percent to the state rate, bringing the total to 8.75 percent. Los Angeles County adds 0.5 percent for a total of 7.75 percent in most of the county, though some cities within Los Angeles County add additional tax.
Some counties have no additional local tax beyond the state 7.25 percent. Others have rates as high as 10.5 percent when you combine state, county, and city taxes. The variation exists because local governments use sales tax revenue to fund schools, transportation, and other services, and voters in each area decide whether to approve local tax increases.
The retailer is responsible for charging the correct rate for your location. If you order online from a California retailer and have it shipped to your address, the tax rate applied should match your delivery location, not the retailer's location.
What items are taxed and what are exempt
Most tangible goods — things you can touch and take home — are subject to sales tax in California. This includes clothing, electronics, furniture, and household items. However, certain categories are exempt from sales tax entirely.
Groceries and food are generally not taxed. This includes fresh produce, meat, dairy, bread, and canned goods. Hot prepared food from a restaurant or deli counter is taxed, but cold food you buy to take home is not. Prescription medications are also exempt. Medical devices prescribed by a doctor — such as diabetic testing supplies, hearing aids, or mobility aids — are typically exempt, though the rules vary depending on the specific device.
Services are usually not taxed in California. Haircuts, dental work, legal information, and accounting services do not have sales tax. However, some services that result in a tangible product — such as repairs, installation, or alterations — may be taxed. For example, if you have a shirt altered, the alteration service itself is not taxed, but if you buy fabric and have it made into a garment, that may be taxed.
Finding your exact sales tax rate
Your exact sales tax rate depends on your specific address, not just your city or county. The California Department of Tax and Fee Administration maintains a sales tax rate lookup tool on its website where you can enter your street address and see your combined rate. This is the most accurate way to find out what you will pay.
You can also call a retailer in your area and ask what sales tax rate they charge, or check your receipt from a recent purchase — the tax rate is printed on it. If you are shopping online and the retailer asks for your zip code, be aware that zip codes can span multiple tax jurisdictions, so the rate shown may not be exact until you provide your full address.
Sales tax on online and out-of-state purchases
If you buy from an online retailer that has a physical presence in California — such as a warehouse or store — California sales tax applies to your purchase. If you buy from an out-of-state retailer with no California presence, California sales tax generally does not explore at checkout, though some states and the federal government have rules requiring certain large retailers to collect it anyway.
As a consumer, you are not responsible for tracking or paying sales tax on purchases where it was not collected. The obligation to collect and remit sales tax falls on the seller, not the buyer.
Special situations and exceptions
Resale certificates allow businesses to buy goods without paying sales tax if they plan to resell those goods. If you are a business owner, you can provide a resale certificate to your supplier and avoid paying sales tax on inventory. The tax is then paid by the end customer when they buy the finished product.
Some organizations — such as nonprofits, government agencies, and schools — may be exempt from sales tax on certain purchases. These organizations typically need to provide documentation of their status to the retailer.
If you believe you were charged sales tax incorrectly, you can contact the retailer to dispute the charge. If the error was systematic — for example, a retailer consistently charging the wrong rate — you can report it to the California Department of Tax and Fee Administration.
Frequently Asked Questions
What is the highest sales tax rate in California?
The highest combined sales tax rate in California is 10.5 percent, found in some areas of Los Angeles County and a few other locations. The lowest is 7.25 percent in areas with no local additions. Most people pay between 7.5 and 8.75 percent depending on where they live.
Do I pay sales tax on groceries in California?
No. Fresh produce, meat, dairy, bread, and most packaged foods are exempt from sales tax. Hot prepared food from a restaurant or deli counter is taxed, but cold groceries you buy to cook at home are not.
Is sales tax charged on online purchases from California retailers?
Yes, if the retailer has a physical location in California or meets certain other requirements, they must charge California sales tax on your purchase based on your delivery address. Out-of-state retailers with no California presence generally do not charge California sales tax.
Can I find out my exact sales tax rate before I buy something?
Yes. The California Department of Tax and Fee Administration has a lookup tool on its website where you enter your street address and see your combined state, county, and city sales tax rate. You can also check a recent receipt from a local retailer to see what rate they charged.
Do I owe sales tax on items I buy outside California and bring home?
No. Sales tax is charged where the sale occurs. If you buy something in another state, you pay that state's sales tax (or none, if that state has no sales tax). You do not owe California sales tax on items purchased elsewhere.