The sales tax rate in ZIP code 92234 is 9.25%. That covers Cathedral City, California, in Riverside County, and it applies to most taxable retail purchases made inside the ZIP code. The rate is a stack of three separate taxes: California’s 7.25% statewide base, a 0.50% Riverside County transportation tax, and a 1.50% Cathedral City district tax.1City of Cathedral City. Sales and Use Tax Collection is handled by the merchant at the register and overseen by the California Department of Tax and Fee Administration (CDTFA).2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
How the 9.25% Breaks Down
Three taxes stack to produce the rate you see on receipts in Cathedral City.
- California statewide base — 7.25%. This rate has been in effect since January 1, 2017, and applies everywhere in the state. It funds the state general fund, local public safety, local health and social services, realignment programs, and a share returned to the county and city where the sale occurs.3California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate
- Riverside County Measure A — 0.50%. A half-cent countywide sales tax first approved by voters in 1988 and extended in 2002 through 2039. The Riverside County Transportation Commission uses the money for road improvements, highways, and transit.4Riverside County Transportation Commission. Measure A
- Cathedral City Transaction and Use Tax — 1.50%. The local district tax, which increased from 1.00% to 1.50% effective April 1, 2025. It funds city services.1City of Cathedral City. Sales and Use Tax
Add them up and you get 9.25%. The statewide portion is the same in every California ZIP code. The county and city layers are what make 92234 different from, say, a neighboring city a few miles away.
What You Pay Tax On and What’s Exempt
California sales tax applies to tangible personal property sold at retail. In plain terms, that’s physical goods: clothing, electronics, furniture, appliances, housewares, and so on. Several big categories sit outside that rule.
Groceries
Most grocery items for home consumption are exempt. Bread, produce, meat, dairy, cereals, and other unprepared food products aren’t taxed.5California Legislative Information. California Revenue and Taxation Code 6359 – Food Products The exemption does not cover alcohol, tobacco, carbonated beverages, or dietary supplements sold in pill or capsule form. Those are taxable.
Prepared and Hot Food
Hot prepared food is always taxable, whether you eat in or take it to go. Food served with plates or utensils, or at tables the seller provides, is also taxable regardless of temperature.6California Department of Tax and Fee Administration. Regulation 1603 Restaurants face an extra rule called the 80-80 rule: if more than 80% of a location’s gross receipts come from food and more than 80% of what it sells is taxable, then even its cold to-go items become taxable unless the business keeps detailed register records separating out nontaxable cold sales.7California Department of Tax and Fee Administration. Tax Guide for Restaurant Owners
Prescription Medicines
Prescription medicines dispensed by a registered pharmacist, or furnished directly by a physician or health facility for treatment, are exempt.8California Department of Tax and Fee Administration. Revenue and Taxation Code 6369 – Prescription Medicines Over-the-counter medications are taxable.
Labor
Pure services are generally not taxed. Repair labor is exempt when the labor charge is itemized separately from parts on the invoice; bundle them into one price and the whole thing becomes taxable. Installation labor attaching equipment to real property is also generally exempt. Fabrication labor, where someone creates or assembles a new product for you, is taxable as part of the sale of goods.
Online and Out-of-State Purchases
When you buy from an out-of-state seller or online retailer that doesn’t charge California tax, you owe use tax at the same 9.25% rate that applies in your ZIP code.1City of Cathedral City. Sales and Use Tax Use tax exists so that shopping out of state doesn’t become a workaround.
You can report use tax on your annual California income tax return or by filing directly with the CDTFA.9California Franchise Tax Board. Use Tax For individual items under $1,000, the Franchise Tax Board publishes a lookup table based on your adjusted gross income, so you don’t need to track every small purchase. Items of $1,000 or more are reported individually using the use tax worksheet with your return.
Most large online retailers now collect California tax automatically. Since 2019, out-of-state sellers with more than $500,000 in annual California sales must register with the CDTFA and collect tax at checkout, and sellers with any physical presence in the state must collect regardless of volume.10California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles, Vessels, and Aircraft Smaller vendors and private-party sales are where use tax typically still comes up.
Vehicles bought from a private party or out of state are the most common example. The buyer pays use tax directly, usually when registering with the DMV or by reporting to the CDTFA. The same applies to boats and aircraft purchased from non-dealers.10California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles, Vessels, and Aircraft
If You Run a Business in 92234
Any business selling tangible personal property at retail in Cathedral City needs a California seller’s permit from the CDTFA before its first sale. That includes corporations, sole proprietors, LLCs, partnerships, wholesalers, and even temporary sellers running something like a 30-day pop-up.11California Department of Tax and Fee Administration. Your California Sellers Permit
A business counts as “engaged in business” in California if it has a physical location here, has representatives operating here, owns property here, or exceeds $500,000 in combined California sales during the current or prior calendar year.11California Department of Tax and Fee Administration. Your California Sellers Permit The CDTFA assigns each permitted business a filing frequency, monthly, quarterly, or annually, based on sales volume.12California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns Businesses inside Cathedral City limits should also check with the city’s Business License division at (760) 770-0353 about a local business tax certificate, which is separate from the state permit.
Late Filing and Payment Penalties
A late return triggers a 10% penalty, and a late payment triggers a 10% penalty, but the combined penalty is capped at 10% for any single reporting period.13California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee Interest also accrues on unpaid tax for every month or partial month it goes unpaid. For 2026, the CDTFA’s interest rate on deficiencies is 10% annually.14California Department of Tax and Fee Administration. Interest Rates
Individuals who fail to report use tax face similar exposure. The Franchise Tax Board warns that unreported use tax can result in penalties and interest assessed during state review.9California Franchise Tax Board. Use Tax