The combined sales and use tax rate in zip code 95054, covering the northern part of Santa Clara, is 9.75% as of April 1, 2026.1California Department of Tax and Fee Administration. California Sales and Use Tax Rates by County and City That is up from 9.125% after voters in Santa Clara County approved additional district taxes. If you need the rate for a specific transaction, confirm it by street address rather than by zip code, because a zip code can cross more than one tax district and the boundaries do not line up.2California Department of Tax and Fee Administration. Find a Sales and Use Tax Rate
What Makes Up the 9.75%
California’s statewide base rate is 7.25%. Local district taxes in Santa Clara County add another 2.50% on top of that base, which produces the 9.75% applied in 95054.1California Department of Tax and Fee Administration. California Sales and Use Tax Rates by County and City
The 7.25% statewide floor is itself a stack. Roughly 6% goes to state-level taxes under the Revenue and Taxation Code, funding the general fund and earmarked programs.3California Legislative Information. California Revenue and Taxation Code 6051 A quarter-cent goes to county transportation and public safety. The Bradley-Burns local tax of 1% is allocated to the city or county where the sale takes place and pays for local services like police, fire, and road maintenance.4California Department of Tax and Fee Administration. Uniform Local Sales and Use Tax Regulations – Article 19
A significant share of the 2.50% in district taxes supports the Santa Clara Valley Transportation Authority. VTA’s 2016 Measure B, a half-cent countywide tax running through 2047, funds transit operations, highway interchanges, BART Phase II construction, and bicycle and pedestrian infrastructure.5VTA. 2016 Measure B Other voter-approved district levies fund additional county transportation and infrastructure priorities.
Rates in neighboring cities can be different, sometimes higher. Campbell sits at 10.50% and Los Gatos at 9.875%, so if you are buying or selling at the edge of 95054, verify the rate for the exact delivery address.1California Department of Tax and Fee Administration. California Sales and Use Tax Rates by County and City
What You Pay 9.75% On, and What You Don’t
Sales tax applies to tangible goods you can see, touch, or weigh. Electronics, furniture, clothing, and prepared restaurant meals are all taxable at the full 9.75% rate.
Most groceries bought for home consumption are exempt. The exemption covers staples like produce, dairy, bread, and most beverages, but it does not extend to hot prepared foods, carbonated drinks, or alcoholic beverages.6California Department of Tax and Fee Administration. California Revenue and Taxation Code 6359 – Food Products The line between groceries and prepared food trips people up. A cold deli sandwich from a grocery store is generally exempt, but heat it and tax applies.
Prescription medications and certain medical devices such as prosthetics are exempt.7California Department of Tax and Fee Administration. Regulation 1602 – Food Products Over-the-counter vitamins and dietary supplements do not qualify and are generally taxable.
Repair Labor Versus Parts
Services in California are mostly not taxed, and that includes labor to fix something. If you take your car to a mechanic or bring a laptop to a repair shop, the labor charge is not taxable. The parts and materials used in that repair are taxable at the full rate.8California Department of Tax and Fee Administration. Labor Charges (Publication 108) – Taxable Labor That is why many repair invoices break out labor and parts on separate lines. When the retail value of parts supplied is more than 10% of the total bill, the repair provider is required to separate the charges and collect tax on the parts.9California Department of Tax and Fee Administration. Labor Charges (Publication 108) – Nontaxable Charges
Online and Out-of-State Purchases
When you buy something from a retailer that does not collect California sales tax, you owe use tax at the same 9.75% rate. Use tax exists so that out-of-state purchases do not escape the tax that an equivalent in-state purchase would carry. Most large online retailers now collect automatically, but smaller vendors sometimes do not.10California Department of Tax and Fee Administration. California Use Tax, Good for You. Good for California
How you report it depends on who you are. Individuals without a seller’s permit report use tax on their California income tax return, using the worksheet and lookup table in the return instructions. Businesses with a seller’s permit report it on their regular sales and use tax return under “Purchases subject to use tax” for the period they first used or stored the item in California. Qualified purchasers, meaning those making more than $10,000 a year in taxable purchases without a seller’s permit, file a separate use tax return by April 15 for the prior calendar year.10California Department of Tax and Fee Administration. California Use Tax, Good for You. Good for California
If You’re Selling Into 95054
Out-of-state businesses shipping into Santa Clara need to check whether they are required to collect. Since the Supreme Court’s 2018 Wayfair decision, California no longer requires a physical presence. Any retailer whose total combined sales of tangible goods delivered into California exceed $500,000 in the current or preceding calendar year must register with the CDTFA and collect at the local rate for the delivery address.11California Department of Tax and Fee Administration. General Information and Collection Requirements – Use Tax Collection Requirements Based on Sales into California Due to the Wayfair Decision The threshold counts all sales by the retailer and any related persons across every channel.12California Department of Tax and Fee Administration. Tax Guide for Marketplace Facilitator Act
Physical presence still creates nexus on its own. Employees, a warehouse, inventory sitting at a fulfillment center, or even a temporary sales representative working in the state can trigger collection duties regardless of sales volume.
If you sell through a platform like Amazon, eBay, or Etsy, the platform collects the tax for California deliveries. Under California’s Marketplace Facilitator Act, in effect since October 1, 2019, the facilitating marketplace is responsible for collecting, reporting, and paying the tax.12California Department of Tax and Fee Administration. Tax Guide for Marketplace Facilitator Act Sales you make through your own website or other non-marketplace channels remain your responsibility.
Late Returns and Late Payments
A 10% penalty applies to a late return, and a separate 10% penalty applies to a late payment. If both are late for the same period, the combined penalty is capped at 10% of the tax due, so they do not double up.13California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee
Penalties get heavier if the CDTFA finds the underreporting was more than a mistake. Negligent disregard of the law carries a 10% penalty. Fraud or deliberate evasion carries 25%. A business that collects tax from customers and knowingly fails to remit it faces a 40% penalty.13California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee
Interest runs on top. For 2026, the CDTFA charges 10% annual interest on underpaid or late-paid tax, calculated daily from the day after the return was due until the date payment is received.14California Department of Tax and Fee Administration. Interest Rates