The sales tax rate in ZIP code 90638, which covers La Mirada, California, is 9.75 percent.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That is California’s 7.25 percent statewide base plus 2.50 percent in voter-approved district taxes that fund Los Angeles County transportation and social services.2California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate It applies to most retail purchases of physical goods in the city, and retailers collect it at the register and send it to the California Department of Tax and Fee Administration (CDTFA).3California Department of Tax and Fee Administration. California Department of Tax and Fee Administration
How the Rate Breaks Down
The 7.25 percent statewide base is the floor for every address in California. It includes 3.9375 percent for the state General Fund, 0.50 percent for the Local Public Safety Fund (county criminal justice), 0.50 percent for the 1991 Realignment Local Revenue Fund (health and social services), 1.0625 percent for the Local Revenue Fund 2011, and 1.25 percent in direct local shares split between county transportation and city or county operations.2California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate
The additional 2.50 percent in 90638 comes from Los Angeles County district taxes. The bulk funds transportation under countywide measures that expand transit and ease traffic, and a quarter-cent portion funds homelessness prevention and services under Measure H.4California Department of Tax and Fee Administration. LA County’s Sales Tax for Homeless Services Takes Effect5LA Metro. Measure R Because districts are approved locally, neighboring cities can have a different combined rate.
Figuring the Tax on a Purchase
Multiply the price by 0.0975. On a $100 purchase, you pay $9.75 in tax, for a total of $109.75. On a $500 appliance, the tax is $48.75. Checkouts handle the math for you, but it is useful when you are comparing prices across cities or budgeting for a large buy.
What Is and Is Not Taxed
California taxes retail sales of tangible personal property: furniture, clothing, electronics, toys, household goods.6California Department of Tax and Fee Administration. Applying Tax to Your Sales and Purchases There is no blanket exemption for clothing. Services are generally not taxed unless they are part of producing a new physical product; repair and installation labor billed as a separate line item is usually not taxable, but fabrication labor usually is.7California Department of Tax and Fee Administration. Common Sales and Use Tax Nontaxable Sales and Partial Exemptions
Groceries
Most cold food bought at a grocery store and taken home to eat is exempt. The exemption covers produce, bread, canned goods, and packaged snacks.8California Legislative Information. California Code Revenue and Taxation Code 6359 – Food Products It does not cover hot prepared food, meals served for on-site consumption, vending machine food, or items sold where more than 80 percent of sales are already taxable food sales, which is how most restaurants are treated. A cold sandwich from a grocery deli counter is generally exempt; the hot rotisserie chicken in the next case over is not.
Prescriptions and Over-the-Counter Medicine
Prescription medicines dispensed by a licensed pharmacist are exempt.9California Department of Tax and Fee Administration. Revenue and Taxation Code 6369 – Prescription Medicines Over-the-counter medications bought without a prescription are taxed at the full 9.75 percent.
Shipping Charges
Delivery and freight charges can escape tax, but only if the seller keeps documentation of the actual shipping cost, such as freight invoices, parcel receipts, or bills of lading.10California Department of Tax and Fee Administration. Shipping and Delivery Charges Without that paperwork, the whole delivery charge is taxable on a taxable sale. Handling is always taxable. If an invoice lumps shipping and handling together, expect to pay tax on the full line.
Garage Sales
Selling your own used items at a garage sale or in a one-off private transaction is generally exempt as an “occasional sale” under Revenue and Taxation Code Section 6367.11California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6367 The exemption does not apply to vehicles, boats, aircraft, or mobile homes; those are always subject to tax regardless of who sells them.
Buying a Vehicle in La Mirada
Vehicles are the purchase where sales tax most often catches people off guard. Whether you buy from a dealer or a private seller, you owe tax at the rate for the address where you register the vehicle, not where the sale takes place.12California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles For a La Mirada resident, that is 9.75 percent of the full purchase price.
On a private-party sale, you pay the tax (called use tax here) at the DMV when you register the vehicle. The taxable amount includes cash paid, any loan you assume, and the fair market value of anything you trade. If the sale happens late in the month, payment is due by the last day of the following month. A vehicle received as a genuine gift, where nothing of value changes hands, is not subject to use tax, but you will need a signed statement from the previous owner and a copy of the title.
When You Owe Use Tax Instead
If you buy from an out-of-state retailer and no California sales tax is collected, you owe an equivalent amount called use tax at the same 9.75 percent rate.13California Department of Tax and Fee Administration. California Use Tax Most large online retailers and marketplaces already collect it, because state law requires marketplace facilitators with more than $500,000 in California sales to collect and remit on behalf of their sellers. Purchases through platforms like Amazon or eBay usually already include the right tax.
Use tax matters most on purchases from smaller out-of-state sellers, private online transactions, or items brought back from a trip. If you paid sales tax to another state at a lower rate, you owe California the difference. If you paid a higher rate elsewhere, nothing more is due.
You can report use tax two ways. The simplest is on your California income tax return, where the Franchise Tax Board provides a worksheet. For personal items under $1,000 each, you can use a lookup table based on your adjusted gross income instead of tracking every purchase; at $60,000 AGI, the table amount is $6.14California Department of Tax and Fee Administration. California Use Tax Table Any single item costing $1,000 or more has to be calculated separately on the full worksheet. You can also pay directly through CDTFA’s online services at any time.
If you make more than $10,000 in untaxed purchases in a calendar year (excluding vehicles, boats, and aircraft), you must register with the CDTFA as a “qualified purchaser” and file an annual use tax return with the agency by April 15.
If You Sell in La Mirada
Any business selling tangible personal property in California needs a seller’s permit from the CDTFA before making its first sale. Registration is online and asks for your Social Security number (unless you are a corporate officer), driver’s license or state ID, federal Employer Identification Number, and business contact information.15California Department of Tax and Fee Administration. Your California Seller’s Permit A pop-up or short-run event lasting 30 days or less uses a temporary seller’s permit instead.
The CDTFA sets your filing frequency (monthly, quarterly, or annually) based on your reported or expected taxable sales at registration.16California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns Higher volume means more frequent filing. The penalty for filing late or paying late is 10 percent of the tax due, and filing and paying late on the same return still caps the combined penalty at 10 percent rather than stacking.17California Department of Tax and Fee Administration. Interest Penalties and Collection Cost Recovery Fee Interest runs on top of the penalty, so the cost of falling behind grows quickly.