The sales tax rate in Berkeley, California is 10.25%, one of the higher combined rates in the state. That figure stacks California’s 7.25% statewide minimum on top of 3.00% in voter-approved district taxes for Alameda County and Berkeley. Every taxable purchase at a Berkeley register reflects all of those layers together.
How the 10.25% Breaks Down
The 10.25% is not a single tax but several taxes collected at the same time by different levels of government. The foundation is California’s statewide minimum of 7.25%, which itself has two pieces: 6.00% that funds the state General Fund, education, and other statewide programs under Revenue and Taxation Code Sections 6051, 6051.2, 6051.3, 6051.15 and Article XIII of the state Constitution, plus 1.25% allocated to cities and counties under Sections 7202 and 7203.1California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate
On top of that 7.25% floor, Berkeley carries 3.00% in voter-approved district taxes. The largest single piece is Alameda County’s Measure BB, a one-cent (1.00%) transportation sales tax that took full effect in April 2022 and runs through 2045. The remaining district taxes fund county health care services and other regional programs. The California Department of Tax and Fee Administration (CDTFA) collects all of these components together and redistributes them to the appropriate agencies.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
What You Pay the Full 10.25% On
Berkeley’s sales tax applies to tangible personal property: physical items like electronics, furniture, clothing, and household goods. If you walk into a store and buy something you can hold in your hand, it’s almost certainly subject to the full 10.25%. Labor-only services such as consulting, tutoring, and home cleaning fall outside the sales tax, though parts and materials used in a repair or installation remain taxable.
Grocery Food
Most grocery food is exempt from sales tax under Revenue and Taxation Code Section 6359. That covers the basics: produce, meat, dairy, bread, canned goods, eggs, cereal, coffee, bottled water, and similar staples. The exemption is broader than people expect, reaching candy, snack chips, and frozen meals as long as you’re buying them from a grocery shelf to eat at home.3California Legislative Information. California Code RTC 6359 – Food Products
The exemption disappears when food is served as a meal, eaten at tables or counters on the premises, sold through a vending machine, or sold at a location that charges admission. Hot prepared food from a deli counter, a burrito eaten at the restaurant, and food truck purchases are all taxable. The dividing line is really about how the food is sold and consumed, not whether it’s hot or cold.3California Legislative Information. California Code RTC 6359 – Food Products
Prescription Medicines and Medical Devices
Prescription medicines dispensed by a licensed pharmacist are exempt under Section 6369. Over-the-counter medications are taxable. Certain medical devices designed for permanent implantation are also exempt.4California Department of Tax and Fee Administration. California Revenue and Taxation Code 6369 – Prescription Medicines
Digital Products and Software
California’s approach to digital goods catches many people off guard. Prewritten software sold on a physical disc or USB drive is taxable. The same software downloaded electronically, accessed through a cloud subscription, or delivered as software-as-a-service is generally not taxable. Streaming music, movies, e-books, and other digital downloads also fall outside the sales tax because California still ties taxability to tangible personal property. No physical medium changing hands, typically no sales tax.5Legislative Analyst’s Office. The 2026-27 Budget: Sales Tax on Prewritten Software
Use Tax on Out-of-State Purchases
If you buy something from an out-of-state retailer that doesn’t collect California sales tax, you owe use tax at the same 10.25% rate. Use tax closes what would otherwise be a loophole: buying from out-of-state sellers to avoid the tax Berkeley retailers are required to charge. Any item that would be taxable if purchased locally triggers the same obligation when bought from elsewhere.6California Department of Tax and Fee Administration. California Use Tax
In practice, most large online retailers now collect California sales tax automatically because of marketplace facilitator rules that treat platforms like Amazon, eBay, and Etsy as the retailer for every sale they facilitate.7California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 1.7 Smaller out-of-state vendors, private-party purchases, and items bought while traveling can still slip through. Individuals report and pay use tax on their California state income tax return.6California Department of Tax and Fee Administration. California Use Tax
If your annual untaxed purchases exceed $10,000 (excluding vehicles, vessels, and aircraft), you qualify as a “qualified purchaser” and must register with the CDTFA and file an annual use tax return by April 15 of the following year. That threshold stays in effect through December 31, 2028.6California Department of Tax and Fee Administration. California Use Tax
The Separate Sugar-Sweetened Beverage Tax
Berkeley also imposes a one-cent-per-fluid-ounce excise tax on sugar-sweetened beverages, and it is not part of the 10.25% sales tax. The excise is levied on distributors rather than collected at the register, though the cost is typically passed through to consumers in the shelf price. It covers sodas, energy drinks, and heavily sweetened teas, and exempts infant formula, milk products, and natural fruit and vegetable juices. Berkeley was the first city in the country to pass this kind of tax, and it applies on top of any sales tax that might also be due on the beverage.8City of Berkeley. Berkeleys Tax Ordinance
So if you’re pricing out a purchase in Berkeley, the quick rule is this: 10.25% on most goods you can carry out of a store, nothing on groceries or prescriptions, nothing on purely digital downloads, and a small extra per-ounce charge baked into the price of sweetened drinks.