How Much Is Sales Tax in California?

Sales tax in California is a significant revenue source, affecting nearly every consumer transaction involving tangible goods. This tax is a combination of state, county, and local jurisdiction rates, funding various public services and programs across the state. Understanding how sales tax is calculated and applied in California is important for both consumers and businesses.

California’s Statewide Sales Tax

California imposes a statewide sales tax rate that forms the foundation of the total tax collected on retail sales. As of 2025, the base statewide sales tax rate in California is 7.25%. This rate includes components allocated to the state’s General Fund.

A mandatory portion of this statewide rate, specifically 1.25%, is directed to local city and county tax authorities. This allocation supports local public safety services and contributes to local health and social services programs. This 7.25% is the minimum sales tax rate applied anywhere in California, before any additional local taxes are considered.

Understanding Local Sales Tax Rates

The total sales tax rate in California is a combination of the statewide rate and various local district taxes, which cause variations across different cities and counties. These local district taxes are approved by voters and are used to fund specific local services such as transportation projects, education initiatives, and other community-specific programs.

District tax rates typically range from 0.10% to 2.00%, and some areas may have multiple district taxes in effect. For example, while the statewide rate is 7.25%, the combined rate can reach as high as 10.75% in some incorporated cities. To determine the exact combined sales tax rate for a specific California address, individuals and businesses can utilize the online lookup tool provided by the California Department of Tax and Fee Administration (CDTFA). This tool allows users to enter a street address, city, and zip code to find the precise sales and use tax rate for that location.

What is Subject to Sales Tax

In California, sales tax generally applies to the retail sale of tangible personal property. This includes physical items that can be seen, weighed, measured, felt, or touched. Common examples of goods subject to sales tax are clothing, electronics, furniture, giftware, and vehicles.

Certain items and services are exempt from sales tax. Unprepared food products for human consumption, such as groceries, are typically not subject to sales tax. Prescription medicines and certain medical devices are also generally exempt. Most services are not taxable unless they are inherently part of the sale or creation of tangible personal property, such as labor involved in manufacturing new goods.

Sales Tax vs. Use Tax

Sales tax and use tax are complementary taxes that apply to the acquisition of tangible personal property in California. Sales tax is collected by a retailer at the time of sale for items purchased within the state. The retailer is then responsible for remitting these collected taxes to the state.

In contrast, use tax is typically owed by the buyer when sales tax was not collected by the seller on a purchase of tangible personal property for use, storage, or consumption in California. This often occurs with purchases from out-of-state or online retailers who are not required to collect California sales tax. The use tax rate is the same as the sales tax rate that would have applied at the location where the item is used or consumed. It is the buyer’s responsibility to report and pay this tax if it was not collected by the seller.