The Cerritos sales tax rate is 9.75%, charged on most retail purchases of physical goods within city limits.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates Sellers collect the full amount at the register and send it to the California Department of Tax and Fee Administration (CDTFA), which then distributes the money to the state, Los Angeles County, and the city.
How the 9.75% Rate Is Built
The rate stacks in layers. California’s statewide minimum is 7.25%, which applies everywhere in the state and is itself split between the state general fund, a local share returned to the city through the Bradley-Burns Uniform Local Sales and Use Tax, and a slice earmarked for county transportation.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
On top of that, Cerritos shoppers pay another 2.50% in district taxes approved by Los Angeles County voters. Three of the largest are:
- Measure R, a 0.50% transportation tax approved by LA County voters in 2008 to fund highways, rail expansions, and local transit.3LA Metro. Measure R
- Measure M, another 0.50% for Metro transit expansion and road repair.
- Measure A, a 0.50% countywide tax for homelessness services and affordable housing, effective April 1, 2025.4Los Angeles County Homeless Initiative. The Facts About Measure A
District rates can shift when voters pass new measures or old ones expire, usually taking effect on January 1 or April 1. The CDTFA publishes an updated rate schedule, which businesses should check at least twice a year.
What You Pay Sales Tax On in Cerritos
Sales tax applies to tangible personal property, which California law defines as anything that can be “seen, weighed, measured, felt, or touched.”5California Legislative Information. California Revenue and Taxation Code 6016 – Tangible Personal Property That covers clothing, furniture, electronics, appliances, building materials, and most other physical merchandise sold at retail.6California Department of Tax and Fee Administration. Sales and Use Tax in California
Groceries and Prescription Medicine
Groceries for home consumption are the biggest everyday exemption. California excludes most food products for human consumption, including meat, produce, dairy, eggs, cereal, coffee, and bottled water.7California Legislative Information. California Revenue and Taxation Code 6359 The exemption does not cover carbonated beverages, alcoholic drinks, or hot prepared food sold for immediate consumption. That last line is the one that trips people up: a cold sandwich from a grocery deli is generally exempt, but a hot rotisserie chicken is not.
Prescription medicines dispensed by a pharmacist or furnished by a licensed physician are also exempt.8California Department of Tax and Fee Administration. California Revenue and Taxation Code 6369 – Prescription Medicines Over-the-counter medications and dietary supplements do not qualify, so those are taxed at the full 9.75%.
Repair and Installation Labor
Whether labor is taxable depends on how the invoice is written. Repair labor and installation labor are both exempt from sales tax in California, but only when they’re listed separately from the parts or materials. Bundle parts and labor into a single line-item price and the whole charge becomes taxable. A car repair shop that breaks out the cost of replacement parts on a separate line keeps the labor charges tax-free; a flat-rate quote that rolls everything together makes the entire bill subject to the 9.75% rate.
Digital Downloads and Software
California currently taxes prewritten software only when it is delivered on physical media like a disc or USB drive. Download the same software, or access it through a subscription, and no sales tax applies under existing law. Digital downloads of e-books, music, and video files are also untaxed.
Use Tax on Out-of-State Purchases
If you buy taxable goods from an out-of-state seller that doesn’t collect California sales tax, you owe a use tax at the same combined rate of 9.75%. This comes up most often with online orders from smaller retailers, items bought while traveling, and goods shipped from another state. The buyer is responsible for the difference between any tax already collected and the full local rate.9California Department of Tax and Fee Administration. California Use Tax
For most individuals, the simplest way to report use tax is on your California state income tax return, which includes a worksheet to help calculate the amount. Vehicles, boats, and aircraft are the exception: use tax on those cannot be reported on your income tax return and must be paid directly to the CDTFA or to the DMV at registration.
If You Sell in Cerritos
Any business selling or leasing tangible personal property in Cerritos needs a California seller’s permit from the CDTFA before making its first sale. The rule applies to corporations, sole proprietors, partnerships, LLCs, and even temporary sellers running a pop-up or seasonal booth for 30 days or fewer at one location. Registration is free and can be done online or at a local office. You’ll need a Social Security number (unless you’re a corporate officer), a driver’s license or state ID, and a business email address.10California Department of Tax and Fee Administration. Your California Seller’s Permit
The CDTFA assigns a filing frequency based on your reported or anticipated sales volume, ranging from annual to monthly, with higher-volume businesses filing more often.11California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns Missing a filing deadline or paying late triggers a penalty of up to 10% of the tax due for the reporting period.12California Department of Tax and Fee Administration. Trouble Paying Taxes Unpaid balances also accrue interest at 10% annually for 2026, calculated monthly.13California Department of Tax and Fee Administration. Interest Rates Penalties plus interest add up fast, so calendar reminders for your specific due dates are one of the cheapest safeguards a small retailer has.
Confirm your point-of-sale system is actually charging 9.75%. Rate changes tied to new or expiring voter measures take effect on January 1 or April 1, and automatic tax tables are only as current as their last update.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates