Tax rates in Fairfield, California stack up like this: an 8.375% combined sales and use tax, a property tax built on Proposition 13’s 1% cap plus local bond assessments, a 12% transient occupancy tax on hotel and short-term rental stays, a utility users tax collected through your monthly utility bills, and a business license tax for anyone operating in the city. Federal rules, especially the SALT deduction cap, decide how much of the state and local bill you can write off.
Sales and Use Tax
The combined sales and use tax rate in Fairfield is 8.375% as of January 1, 2026.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That’s California’s 7.25% statewide base plus district taxes, the largest of which is Measure P, a voter-approved 1% transaction and use tax that stays entirely within the city and funds general services like police, fire, streets, and parks.2City of Fairfield. Measure P – Protect What Works The current Measure P authorization runs through March 31, 2033.3Solano County Courts. Solano County Grand Jury 2019-2020 Fairfield Measure P
The same 8.375% rate applies as use tax when a Fairfield business buys from an out-of-state seller that doesn’t collect California tax.4California Department of Tax and Fee Administration. Sales and Use Tax in California
What’s Exempt
Most grocery food bought for home consumption is exempt: produce, meat, dairy, bread, cereals, canned goods. Prescription medicine is exempt too.5California Department of Tax and Fee Administration. Sales and Use Tax Regulations – Article 8 Prepared hot food, carbonated beverages, and food served for on-premises dining are generally taxable. The line between exempt groceries and taxable prepared food trips up a lot of small food businesses.
Property Tax
Proposition 13 caps the base property tax rate at 1% of assessed value. The Solano County Assessor sets that value, and annual increases are limited to 2% unless the property changes hands or you build new construction, either of which triggers a reassessment to current market value.6California State Board of Equalization. California Property Tax An Overview That’s why long-term owners often pay far less than new buyers on identical houses.
The 1% base is only the starting point. Your actual bill adds voter-approved bond assessments for schools, community facility districts, and landscaping and lighting districts, which vary by neighborhood and push the effective rate above 1%. After you close on a Fairfield property, expect a supplemental bill covering the gap between the prior owner’s assessed value and your new market-value assessment, prorated for the rest of the fiscal year.
Deadlines and Penalties
Solano County splits the annual bill into two installments. The first is due by December 10, the second by April 10.7Solano County. Fiscal Year 2025/2026 Secured Annual Property Tax Bills Miss either date and a 10% penalty attaches to the delinquent installment. Unpaid taxes become tax-defaulted on July 1, and after five years of default the county can sell the property at public auction.8California State Controller’s Office. Public Auctions and Bidder Information
Homeowner’s Exemption
Own and occupy your Fairfield home as your primary residence on January 1 and you can file a one-time form with the Solano County Assessor to knock $7,000 off your assessed value. That works out to roughly $70 to $80 a year in actual savings. Small, but there’s no reason to leave it on the table.
City-Level Taxes
Business License Tax
Any business operating within city limits needs a Fairfield business license, including home-based operations and professional practices. The tax is calculated by activity type and gross receipts.9Code Publishing Company. Fairfield Code 10B – Business License Taxes Run multiple businesses at one location and you pay a single license based on combined gross receipts under the classification matching your principal activity.
Utility Users Tax
Fairfield’s Utility Users Tax applies to telecommunications, natural gas, and electricity consumption inside the city.10City of Fairfield. Utility User Tax (UUT) Your service providers collect it on your monthly bills and remit to the city’s general fund, so there’s nothing to file. Providers that fail to remit for two or more billing periods face additional penalties.
Transient Occupancy Tax
Hotels, motels, and short-term rentals charge a 12% transient occupancy tax on rent paid by any guest staying 30 days or fewer. The rate reflects a 2% increase that Fairfield voters approved as Measure M in November 2024, effective January 1, 2025.11City of Fairfield. Transient Occupancy Tax (TOT) and Tourism Business Improvement District Tax (TBID) Vacation rental operators must register with the city and collect the tax from guests.
Federal Deduction Rules That Shape Your Fairfield Bill
The SALT Cap
If you itemize federally, you can deduct state income tax (or state sales tax) plus local property tax up to the SALT cap. For 2026, the cap is $40,400 for most filers and $20,200 if married filing separately.12Internal Revenue Service. One, Big, Beautiful Bill Provisions The higher cap begins to phase down once your modified adjusted gross income exceeds $505,000, and fully phased-out taxpayers drop to the old $10,000 ceiling. The cap rises 1% annually through 2029 before reverting to $10,000 in 2030 unless Congress acts again.
Between California income tax rates and Fairfield property taxes that often run into five figures, the SALT cap is the single biggest constraint on what local homeowners can deduct.
You can deduct state and local sales tax instead of state income tax if that helps. The IRS publishes optional tables by income and family size, and you can add sales tax paid on large purchases.13Internal Revenue Service. Use the Sales Tax Deduction Calculator California’s income tax rates mean most residents come out ahead deducting income tax, but it’s worth running the numbers in a low-income, high-spending year.
Mortgage Interest
Fairfield homeowners can deduct interest on up to $750,000 of acquisition debt, or $375,000 if married filing separately. Mortgages originated on or before December 15, 2017 still qualify under the older $1,000,000 limit.14Office of the Law Revision Counsel. 26 USC 163 – Interest The One Big Beautiful Bill Act made these limits permanent, and starting in 2026 private mortgage insurance premiums count as deductible mortgage interest. With Fairfield median home prices sitting under the $750,000 threshold, most local buyers can deduct their full mortgage interest.
Where to Pay What
Different taxes go to different offices, and sending payment to the wrong place is a common mistake.
- Property tax: Solano County Tax Collector, through the online portal, by mail to PO Box 51094, Los Angeles, CA 90051-5394, or in person at 675 Texas Street, Suite 1900 in Fairfield, Monday through Friday, 8:30 AM to 4:00 PM. A drop box sits outside the office.7Solano County. Fiscal Year 2025/2026 Secured Annual Property Tax Bills
- Sales and use tax: Filed through the California Department of Tax and Fee Administration online, on a monthly, quarterly, or annual schedule depending on volume.15California Department of Tax and Fee Administration. Online Services – File a Return
- Business license tax: Fairfield Finance Department, with online renewals and paper applications by mail.
- Utility Users Tax: Collected automatically by your utility provider; nothing to file.
- Transient occupancy tax: Lodging operators collect from guests and remit to the Fairfield Finance Department on a regular reporting schedule.
Hold on to confirmation numbers and payment receipts. Property tax receipts come up during a home sale, and the Solano County Tax Collector’s portal lets you look up your parcel and confirm that payments posted.