The combined sales tax rate in the 95014 ZIP code covering Cupertino is 9.750% as of April 1, 2026, up from 9.125% earlier in the year.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That rate applies to most purchases of physical goods in Cupertino and surrounding Santa Clara County. What follows is how the rate is built, what it actually applies to, and the exemptions worth knowing before a large purchase or a business filing.
How the 9.750% Rate Is Built
California layers its sales tax. The statewide minimum is 7.25%, which every jurisdiction charges regardless of local measures. That floor comes from Revenue and Taxation Code Section 6051 plus mandatory allocations for local revenue, public safety, and county transportation.2California Department of Tax and Fee Administration. California Revenue and Taxation Code 6051 – Imposition and Rate of Sales Tax
On top of the state floor, Cupertino shoppers pay 2.50% in voter-approved district taxes. These fund regional transportation, public transit, and local infrastructure. Santa Clara County’s 2016 Measure B, for example, added a half-cent countywide tax dedicated to transit operations, interchange and expressway work, and bicycle and pedestrian projects.3Santa Clara Valley Transportation Authority. 2016 Measure B Other district components fund BART expansion and general county transportation. The April 2026 jump from 9.125% to 9.750% reflects a newly effective district measure adding 0.625%.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
What the Rate Applies To
Sales tax applies to tangible personal property, meaning physical goods you can see and touch. Electronics, furniture, clothing, vehicles, appliances, and building materials are all taxed at the full 9.750% in 95014. The tax is calculated on the total sale price, including any delivery charges the seller requires as a condition of the sale.2California Department of Tax and Fee Administration. California Revenue and Taxation Code 6051 – Imposition and Rate of Sales Tax
Services are generally not taxed. The dividing line is whether the customer’s real objective is the service itself or a physical product produced by it. Hiring an accountant, lawyer, or landscaper for expertise carries no sales tax. Hiring someone to fabricate a custom piece of equipment is different: the fabrication labor rolls into the taxable sale price, because the customer is ultimately buying a product.4California Department of Tax and Fee Administration. California Department of Tax and Fee Administration – Business Taxes Law Guide – Section: Regulation 1501
Groceries vs. Prepared Food
Most grocery food is exempt. The exemption covers produce, meat, dairy, bread, cereal, eggs, canned goods, frozen food, coffee, tea, and non-carbonated beverages including bottled water.5California Legislative Information. California Revenue and Taxation Code RTC 6359 A full grocery cart at a Cupertino supermarket carries no sales tax.
Prepared food is different. Hot prepared food is always taxable, whether it’s a heated deli sandwich, a hot buffet tray, or a warm bowl of soup. Food sold with eating utensils, or served at tables, counters, or trays provided by the seller is also taxable regardless of temperature.6California Department of Tax and Fee Administration. Regulation 1603
A few items that look like groceries are taxed anyway: carbonated beverages (sodas and flavored sparkling water), alcoholic beverages, and dietary supplements in pill, capsule, or powder form. Candy and chewing gum, somewhat counterintuitively, stay exempt as long as they’re sold at a regular grocery store rather than as part of a prepared meal.5California Legislative Information. California Revenue and Taxation Code RTC 6359
There’s one more wrinkle, the 80-80 rule. If a seller earns more than 80% of its revenue from food, and more than 80% of its food sales are already taxable (think a restaurant or fast-food location), even cold to-go items like a bottled water or packaged salad become taxable there. The same cold salad at a grocery store is tax-free.6California Department of Tax and Fee Administration. Regulation 1603
Prescriptions and Medical Devices
Prescription medicines dispensed by a licensed pharmacist are exempt. So are medicines furnished directly by a physician, dentist, or health facility for patient treatment. Over-the-counter medications sold without a prescription are taxable.
Certain medical devices qualify for the exemption too: prosthetic devices that replace or assist a natural body function, orthotic braces and supports (other than basic orthopedic shoes), permanently implanted items such as pacemakers and bone pins, and surgical sutures. The common thread is a medical function prescribed or directed by a healthcare provider.
Online Purchases and Use Tax
If an online seller charges you 9.750% California tax, you’re covered. Large platforms usually handle this automatically. Since October 2019, California law treats marketplace facilitators such as Amazon, eBay, and Etsy as the retailer for tax purposes, so the platform collects and remits sales tax on behalf of third-party sellers.7California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 1.7
The gap is a smaller out-of-state seller that doesn’t collect California tax. You owe an identical amount called use tax, at the same 9.750% rate for Cupertino residents. The point is to keep out-of-state purchases from having a built-in price advantage over local stores. You can report use tax directly on your California income tax return. For small untaxed purchases under $1,000 each, the CDTFA publishes a use tax lookup table keyed to adjusted gross income, so you don’t have to track every transaction.8California Department of Tax and Fee Administration. California Use Tax Table
For individual items of $1,000 or more where the seller didn’t collect tax, you have to report the actual purchase price rather than use the lookup table. Skipping use tax can lead the CDTFA to assess the unpaid tax plus penalties and interest if it finds the purchases later.
Business Purchases: Resale and Manufacturing Exemptions
Businesses buying inventory for resale don’t pay sales tax on those purchases, provided they give the supplier a valid resale certificate. California’s standard form is CDTFA-230, which must include the buyer’s name, address, seller’s permit number, a description of the goods bought for resale, and a signature. It can cover a single transaction or serve as a blanket certificate for all future purchases from the same supplier. Misusing a resale certificate to avoid tax on items you intend to use rather than resell can trigger penalties, interest, and in serious cases criminal prosecution.9California Department of Tax and Fee Administration. Sales for Resale (Publication 103)
Cupertino sits in Silicon Valley, and many businesses here qualify for a partial exemption on equipment used in manufacturing or research and development. The exemption cuts 3.9375 percentage points off the 7.25% statewide base, bringing the effective state-level rate on qualifying purchases down to 3.3125%. District taxes still apply on top. The equipment must be tangible personal property used primarily in manufacturing, R&D, or electric power generation, and the exemption runs through June 30, 2030.10California Department of Tax and Fee Administration. Tax Guide for Manufacturing, and Research and Development, and Electric Power Equipment and Buildings Exemption
Seller’s Permit and Rate Updates
Any business selling taxable goods in Cupertino needs a California seller’s permit. Registration through the CDTFA is free and can be completed online, though the CDTFA may require a security deposit depending on business type and projected sales volume.11California Department of Tax and Fee Administration. Online Services – Registration
Once registered, the CDTFA assigns a monthly, quarterly, or annual filing frequency based on expected taxable sales. Each return reports total sales, taxable sales, and tax collected, broken out by district. The CDTFA’s online system handles district allocation, but you have to program the correct rate into your point-of-sale system. With Cupertino’s rate at 9.750% beginning April 1, 2026, a register still set to 9.125% is under-collecting, and the difference comes out of the business at filing time, potentially with penalties.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates