The sales tax rate for ZIP code 94501 is 10.75%, which applies to most retail purchases in the city of Alameda, California.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That rate combines California’s 7.25% statewide base with 3.5% in voter-approved district taxes that pay for local transportation, health care, and city services. Because those district add-ons vary from one city to the next, the same purchase in Alameda can cost slightly more at the register than it would a few miles away.
How the 10.75% Rate Is Built
Every sale in California starts with the 7.25% statewide base. On top of that, Alameda shoppers pay 3.5% in district taxes approved by voters in Alameda County and the city of Alameda.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
The largest district piece is Measure BB, a 1% transportation sales tax administered by the Alameda County Transportation Commission. It increased from 0.5% to a full cent on April 1, 2022, and runs through 2045.3Alameda CTC. Measure BB Direct Local Distributions Three additional county measures each add 0.5%: Measures A, C, and W fund health care, children’s services, housing for people experiencing homelessness, and other social programs across the county.4Alameda County Health. Measures A, C, and W A city-level measure adds the final 0.5%, bringing the district total to 3.5%.
Watch Out for the ZIP Code Trap
The 10.75% figure applies to the city of Alameda, but a ZIP code alone is not always a reliable way to pin down a tax rate. The CDTFA warns that a single ZIP can span more than one tax jurisdiction, and mail routed through a neighboring post office can make a purchase look like it happened in a different city.5California Department of Tax and Fee Administration. Tax Rate FAQ for Sales and Use Tax If you are collecting tax as a business, use the CDTFA’s lookup tool with a full street address.6California Department of Tax and Fee Administration. Find a Sales and Use Tax Rate
Rate is also tied to where the buyer takes delivery, not where the seller sits. Order a product online for delivery to an Alameda address and you pay 10.75% even if it ships from a warehouse in a lower-tax county.7California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate
What You Pay 10.75% On
California sales tax applies to tangible personal property: anything that can be seen, weighed, measured, felt, or touched.8California Department of Tax and Fee Administration. California Revenue and Taxation Code 6016 – Tangible Personal Property That covers electronics, furniture, clothing, sporting goods, building materials, and most other physical items you buy at retail.
A few less obvious categories also get taxed:
- Fabrication labor. Straight repair labor generally isn’t taxable, but if someone builds, assembles, or manufactures a new product for you, the labor charges are taxable whether you supply the materials or the worker does.9California Department of Tax and Fee Administration. Taxable Labor
- Delivery charges, when they’re bundled into the item price or billed as a “delivered price.” Sellers who don’t keep records of actual shipping costs also owe tax on the full delivery charge.10California Department of Tax and Fee Administration. Shipping and Delivery Charges – Applying Sales Tax
- Vehicles. When you buy a car, truck, or motorcycle, the rate is based on the address where you register it. Register at an Alameda address and you pay 10.75% even if the dealership is somewhere cheaper.11California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles
Digital products are a different story. California currently taxes prewritten software only when it comes on a physical disc or other tangible media. Downloaded software, cloud subscriptions, custom software, e-books, streaming audio, and digital video are all exempt. The Governor’s 2026–27 budget proposal would extend sales tax to all prewritten software starting January 1, 2027, regardless of delivery method, but that proposal still needs legislative approval.12Legislative Analyst’s Office. The 2026-27 Budget: Sales Tax on Prewritten Software
What’s Exempt
Groceries
Most food you buy at a grocery store is exempt. Revenue and Taxation Code Section 6359 covers fruit, vegetables, meat, dairy, eggs, bread, cereals, canned and frozen goods, bottled water, and non-carbonated beverages.13California Legislative Information. California Code Revenue and Taxation Code 6359 – Food Products Candy and gum are also exempt as long as they aren’t sold as prepared food.
The exemption disappears for hot prepared food, restaurant meals, and anything sold with utensils or for consumption at tables the seller provides. A cold deli sandwich to take home is exempt. The same sandwich heated and eaten at the deli’s tables is taxed at the full 10.75%. Carbonated drinks and alcohol are always taxable.
Prescription Medicines
Prescription medicines dispensed by a pharmacist or furnished directly by a physician for a patient’s treatment are exempt under Revenue and Taxation Code Section 6369.14California Legislative Information. California Code Revenue and Taxation Code 6369 Over-the-counter medications and dietary supplements do not qualify.
Resale Purchases
Businesses buying inventory to resell can avoid paying sales tax at purchase by giving the seller a valid resale certificate. The certificate has to include the buyer’s name, address, seller’s permit number, a description of the goods, a statement that the purchase is for resale, the date, and the buyer’s signature.15California Department of Tax and Fee Administration. Resale Certificates Tax is then collected from the end customer when the item is sold at retail. Nonprofits don’t get a blanket exemption; a 501(c)(3) selling tangible goods generally owes tax like any other retailer.16California Department of Tax and Fee Administration. Nonprofit/Exempt Organizations
Buying from Out of State
If you buy from an out-of-state seller who doesn’t collect California sales tax, you owe use tax at the same 10.75%. This covers online purchases, mail orders, and items you bring back from trips.17California Department of Tax and Fee Administration. California Use Tax Anything exempt from sales tax is also exempt from use tax.
Most individuals report use tax directly on their California income tax return. For personal purchases under $1,000 each, the CDTFA publishes a lookup table so you don’t have to dig through every receipt.18California Department of Tax and Fee Administration. California Use Tax Table If untaxed purchases exceed $10,000 in a calendar year (not counting vehicles and aircraft), you’re a “qualified purchaser” and must register with the CDTFA and file a separate return by April 15.17California Department of Tax and Fee Administration. California Use Tax Vehicles, vessels, and aircraft have their own reporting process and can’t go on your income tax return.
Collecting the Tax as an Alameda Business
Any business selling or leasing tangible personal property in California needs a seller’s permit from the CDTFA. The permit itself is free, though the agency may require a security deposit to cover potential unpaid taxes if the business later closes.19California Department of Tax and Fee Administration. Obtaining a Seller’s Permit Out-of-state sellers also need a permit once their combined California sales exceed $500,000 in the current or prior calendar year.20California Department of Tax and Fee Administration. Your California Seller’s Permit Short-term operations like a weekend sale or holiday pop-up use a temporary permit, usually issued for 90 days or less at one location.
The CDTFA assigns a filing frequency (yearly, quarterly, or monthly) based on your taxable sales volume.21California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns Missing a deadline triggers a 10% penalty on the unpaid tax, plus interest. The 10% is a hard cap per return period and doesn’t compound, but the interest does.22California Department of Tax and Fee Administration. California Revenue and Taxation Code 6591 – Interest and Penalties For 2026, the CDTFA charges interest at 10% per year on overdue balances, calculated monthly.23California Department of Tax and Fee Administration. Interest Rates On a $5,000 balance, that’s about $42 a month in interest alone.