Yes, soda is taxed in California. The state’s 7.25% base sales tax applies to every soda sold, whether it’s a can from the grocery store or a fountain drink at a restaurant, because carbonated beverages are specifically excluded from California’s grocery tax exemption. Local district taxes push the combined sales tax rate as high as 10.75% in some areas, and five cities add a separate per-ounce excise tax on sugar-sweetened drinks on top of that.
Why Soda Doesn’t Get the Grocery Exemption
California exempts most food products from sales tax, which is why bread, eggs, and fresh produce ring up tax-free. The statute that defines “food products” carves out carbonated beverages, so they never qualify for the exemption in the first place.1California Legislative Information. California Revenue and Taxation Code 6359 – Food Products The California Department of Tax and Fee Administration confirms this in its regulations, grouping carbonated drinks with alcohol as items that don’t count as exempt food.2California Department of Tax and Fee Administration. Regulation 1602 – Food Products
A common assumption is that a sealed 12-pack from the supermarket gets treated like other groceries. It doesn’t. For most food, California’s rule turns on whether the item is sold for immediate consumption or to take home, but that distinction doesn’t matter for soda. Carbonation alone puts it outside the exemption.
How Much Sales Tax You’ll Pay
California’s base statewide sales tax rate is 7.25%.3California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate Most cities and counties add local district taxes on top, and as of April 2026 combined rates run as high as 10.75% in some jurisdictions.4California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates The rate that applies is the rate at the store’s location, not your home address. The CDTFA publishes a lookup tool for specific addresses.
Cities That Add a Per-Ounce Soda Tax
Five California cities charge a separate excise tax on sugar-sweetened beverages. These taxes are collected from distributors rather than at the register, but the cost gets passed through in the shelf price, so soda costs noticeably more in these cities than elsewhere in the state.
- Berkeley: one cent per ounce, effective 2015. Berkeley was the first city in the country to enact a soda tax.5Healthy Berkeley. Berkeley’s Tax Ordinance
- Albany: one cent per ounce, collection beginning April 2017.6City of Albany, California. Sugar-Sweetened Beverage Tax
- Oakland: one cent per ounce, effective July 2017.7ScienceDirect. Oakland’s Sugar-Sweetened Beverage Tax: Impacts on Prices, Purchases and Consumption by Adults and Children
- San Francisco: one cent per ounce, effective January 2018.7ScienceDirect. Oakland’s Sugar-Sweetened Beverage Tax: Impacts on Prices, Purchases and Consumption by Adults and Children
- Santa Cruz: two cents per ounce, effective May 2025.8American Heart Association Newsroom. Santa Cruz Implements Sugary Drink Tax After 7-Year Battle
These local taxes target sugar specifically. Diet soda, unsweetened sparkling water, milk-based drinks, 100% fruit or vegetable juice, infant formula, and alcohol are generally excluded from the local excise. That produces an odd split: diet soda is exempt from the city excise but still subject to statewide sales tax, because the sales tax rule keys on carbonation while the city taxes key on sugar.
Diet Soda, Sparkling Water, and Other Close Calls
Carbonation is the line for sales tax. If a beverage fizzes, expect sales tax. If it doesn’t, it usually qualifies as an exempt food product.
- Diet soda: taxable. Carbonation puts it outside the exemption regardless of sugar content.
- Sparkling water: taxable. The statute specifically excludes “carbonated or effervescent bottled waters” from the food-product definition.1California Legislative Information. California Revenue and Taxation Code 6359 – Food Products
- Still bottled water: exempt.1California Legislative Information. California Revenue and Taxation Code 6359 – Food Products
- Noncarbonated sports drinks and energy drinks: exempt. The CDTFA treats these as food products.9California Department of Tax and Fee Administration. Sales and Use Tax Annotations – 245.0000
- Carbonated energy drinks: taxable, because of the carbonation.
- Noncarbonated fruit juice: exempt, whether 100% juice or a sweetened blend.1California Legislative Information. California Revenue and Taxation Code 6359 – Food Products
- Carbonated fruit juice: generally taxable, with a narrow exception for 100% natural juice that contains no preservatives or additives.9California Department of Tax and Fee Administration. Sales and Use Tax Annotations – 245.0000
- Milk and milk-based drinks, including milkshakes: exempt.1California Legislative Information. California Revenue and Taxation Code 6359 – Food Products
- Infant formula: exempt.10California Department of Tax and Fee Administration. Sales and Use Tax Annotations – 245.0940
The sparkling water result catches people off guard. Buy a bottle of still water and pay no tax. Grab the sparkling version off the next shelf and sales tax applies. Frozen drinks work the same way: noncarbonated versions are exempt, carbonated ones taxable.9California Department of Tax and Fee Administration. Sales and Use Tax Annotations – 245.0000
Soda Bought With CalFresh
Soda paid for with CalFresh benefits is not subject to sales tax. California exempts all purchases made with CalFresh (SNAP) benefits from sales and use tax, even items that would otherwise be taxable.11California Department of Tax and Fee Administration. California Revenue and Taxation Code 6373 – Food Stamp Coupons Federal law also blocks states from collecting sales or excise taxes on SNAP purchases.12GovInfo. 7 CFR 272.1 – General Terms and Conditions If your total exceeds your CalFresh balance and you cover the difference in cash, only the cash portion gets taxed.
The city excise taxes work differently. Because those taxes are paid by distributors before the product hits the shelf, they’re already in the sticker price. CalFresh spares you the sales tax but not the higher shelf price in cities like Berkeley or Santa Cruz.
The CRV You’ll See on the Receipt
Every soda purchase in California also carries a California Redemption Value deposit, printed on the receipt as CRV. It’s 5 cents per container under 24 ounces and 10 cents per container 24 ounces or larger.13CalRecycle. Beverage Container Recycling Program CRV isn’t legally a tax, since you can get it back by returning the container to a recycling center, but most people never redeem it. On a 12-pack of cans, CRV adds 60 cents before sales tax is figured.