The sales tax rate in the 90504 ZIP code, which covers part of Torrance in Los Angeles County, is 10.25 percent. That figure combines California’s 7.25 percent statewide minimum with 3.00 percent in district taxes approved by county and local voters.1California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate
How the 10.25 Percent Breaks Down
Every taxable sale in California starts at the 7.25 percent state base. That base funds the state general fund, county-level health and social services, local public safety, and city and county general operations under the Bradley-Burns law.1California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate
On top of that, Torrance shoppers pay 3.00 percent in district taxes. Two of the biggest pieces are Measure R and Measure M, each adding 0.50 percent for Los Angeles County transportation projects such as rail extensions, bus service, and highway work.2Los Angeles County Metropolitan Transportation Authority. Measure R The remaining district taxes fund county homeless services, parks, and local Torrance programs. The 7.25 percent base plus the 3.00 percent in district taxes is what reaches the 10.25 percent you see at the register.
What Gets Taxed
Sales tax applies to most tangible goods you carry out of a store: electronics, furniture, clothing, sporting goods, and similar items. Hot prepared food sold for immediate consumption is taxable too. Services generally are not taxed unless they produce a physical product delivered to the customer.
Several everyday categories are exempt. Groceries and food products for home consumption are not taxed, though restaurant meals and food eaten on the seller’s premises are.3California Department of Tax and Fee Administration. Grocery Stores Prescription medicines dispensed by a pharmacist are exempt, and so are prosthetic devices that replace or assist a natural body function, such as artificial limbs.4California Department of Tax and Fee Administration. Revenue and Taxation Code 6369 Hearing aids, eyeglasses, and over-the-counter medicines like aspirin do not qualify for that exemption and remain fully taxable.
Digital Goods
California generally does not tax digital products delivered electronically. Software downloads, e-books, streaming subscriptions, and mobile apps sent over the internet are typically not subject to sales or use tax. Put the same product on a flash drive or disc, and the entire sale becomes taxable.
Shipping and Delivery Charges
Whether shipping is taxable depends on how the seller writes the invoice. If the delivery charge is listed as a separate line item and the item ships through a common carrier like USPS, FedEx, or UPS, the shipping portion is generally not taxable. Bundling shipping into the product price, labeling the charge as “handling,” or delivering with the seller’s own vehicle can make the whole charge taxable.5California Department of Tax and Fee Administration. Shipping and Delivery Charges – Publication 100 Sellers who don’t keep records of actual delivery costs will owe tax on the full delivery charge when it’s tied to a taxable sale.
Use Tax on Out-of-State Purchases
Buy something from an out-of-state retailer that doesn’t collect California tax, and you owe use tax at the same combined rate that would have applied locally. For 90504, that’s 10.25 percent.6California Department of Tax and Fee Administration. Internet Sales – Publication 109
Most large online marketplaces already collect California sales tax on behalf of their third-party sellers. Purchases from smaller out-of-state vendors, private-party sales from other states, or items brought back from travel can still trigger a use tax obligation. You can report use tax on your California income tax return or file directly with the CDTFA. The same exemptions that apply to sales tax, such as groceries and prescriptions, apply to use tax.
Calculating the Tax
Multiply the price of the taxable item by 0.1025. A $100 purchase produces $10.25 in tax, for a $110.25 total. A $47.99 item yields $4.92 in tax ($47.99 × 0.1025 = $4.919, rounded up), for a final price of $52.91. When the tax calculation produces a third decimal of five or higher, the amount rounds up. Retailers handle this automatically; California does not allow rounding to the nearest nickel or any other method.
If You Sell in 90504
Seller’s Permit
Anyone selling tangible personal property in California must hold a seller’s permit from the CDTFA before making a first sale. That covers sole proprietors, corporations, partnerships, and LLCs, wholesale or retail. The permit itself is free, though the CDTFA may require a refundable security deposit based on estimated tax liability.7California Department of Tax and Fee Administration. Obtaining a Sellers Permit Temporary sellers, such as a holiday pop-up, need a temporary permit for operations lasting up to 90 days at one location.
Individuals selling personal belongings don’t always need a permit. Under CDTFA Regulation 1595, a sale of property you held for personal use is generally not taxable unless you make three or more such sales within a 12-month period.8California Department of Tax and Fee Administration. Regulation 1595 A single weekend garage sale usually won’t trigger this; regularly flipping used goods online can.
Resale Certificates
Businesses buying inventory for resale can avoid paying sales tax on those purchases by giving the supplier a valid resale certificate. The certificate must include the buyer’s seller’s permit number, a description of the property, and a statement that the goods are for resale. Items purchased under a resale certificate cannot be used or consumed by the business itself. A restaurant can buy ingredients this way; it cannot buy a new office printer.
Filing and Penalties
The CDTFA assigns each business a monthly, quarterly, or annual filing frequency based on sales volume. Late filing or late payment triggers a penalty of 10 percent of the tax due for that reporting period.9California Department of Tax and Fee Administration. Trouble Paying Taxes Filing late and paying late doesn’t stack: the combined penalty is capped at 10 percent. Interest also accrues on the unpaid balance.
Remote Sellers
Out-of-state businesses selling into California must register with the CDTFA and collect use tax once they exceed $500,000 in sales into the state during the current or preceding calendar year.10California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California California uses no separate transaction-count threshold; the $500,000 revenue test is the sole trigger. Marketplace platforms like Amazon, eBay, and Etsy are generally responsible for collecting and remitting tax on sales made through their platforms, even if the individual seller hasn’t hit that threshold. If all your sales run through a marketplace facilitator, separate registration may not be needed.
Manufacturing Equipment Exemption
Businesses that manufacture goods or conduct research and development can claim a partial sales tax exemption of 3.9375 percent on qualifying equipment, which reduces the effective state portion from 7.25 percent to 3.3125 percent. District taxes still apply on top of that reduced rate.11California Department of Tax and Fee Administration. Tax Guide for Manufacturing, and Research and Development, and Electric Power Equipment and Buildings Exemption The exemption runs through June 30, 2030. The seller must obtain a timely exemption certificate from the buyer before billing or delivery and keep it on file for at least four years.