The Palm Desert sales tax rate is 8.75 percent as of January 1, 2026. That rate applies to most retail purchases of tangible goods within city limits, from a sofa on El Paseo to a pair of sunglasses at a resort gift shop. The rate climbed a full point after voters approved Measure G in November 2024, which added a 1 percent local tax on top of the existing state and county rates.1City of Palm Desert. Measure G
How the 8.75 Percent Is Built
Three layers stack to produce the total. California’s statewide base rate is 7.25 percent, which funds state programs including education, public safety, and local government operations.2California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate Riverside County adds another 0.50 percent, bringing the county-wide floor to 7.75 percent.3California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates The final 1 percent is Measure G, formally the “Palm Desert Public Safety, Roads, City Services Measure,” which voters approved on November 5, 2024. It has no built-in expiration and continues until voters choose to end it.1City of Palm Desert. Measure G
In practical terms, every taxable dollar you spend in Palm Desert carries about nine cents in sales tax, with one of those cents staying local through Measure G.
What the Rate Applies To
California charges sales tax on tangible personal property, meaning anything you can see, touch, or weigh. That covers clothing, electronics, furniture, vehicles, and most other physical goods bought in a store or shipped to a Palm Desert address.4California Department of Tax and Fee Administration. Applying Tax to Your Sales and Purchases Pure services, such as a haircut, legal advice, or house cleaning, are generally not taxed unless they produce a physical product that gets sold.
Groceries and Prepared Food
Cold food products intended for human consumption are exempt. Bread, produce, and packaged snacks at the supermarket come with no sales tax. Hot prepared food is a different story: order a warm meal at a restaurant and the exemption disappears. The dividing line is temperature at the point of sale. If the item was heated for selling and is warmer than the surrounding air, it’s taxable.5California Department of Tax and Fee Administration. California Revenue and Taxation Code 6359 – Food Products
Medicines and Health Products
Prescription medicines filled by a licensed pharmacist are exempt.6California Department of Tax and Fee Administration. California Revenue and Taxation Code 6369 – Prescription Medicines Over-the-counter drugs are taxable. Diapers and menstrual hygiene products, including tampons, pads, and menstrual cups, were temporarily exempted starting in 2020, and the legislature later made the exemption permanent through AB 150.
Online and Out-of-State Purchases
If you buy something from an out-of-state seller who doesn’t collect California sales tax, you still owe a matching “use tax” at the same 8.75 percent rate. It applies to online orders, items bought while traveling, and anything shipped into Palm Desert from a seller that didn’t charge tax at checkout.7California Department of Tax and Fee Administration. California Use Tax
Most individuals report and pay use tax on their California state income tax return using the worksheet in the instructions. That’s the simplest route for occasional purchases. You can also pay directly through the CDTFA’s online portal. If your untaxed purchases exceed $10,000 in a calendar year, excluding vehicles, vessels, or aircraft, you’re classified as a “qualified purchaser” and must register with the CDTFA and file an annual use tax return by April 15.7California Department of Tax and Fee Administration. California Use Tax Vehicles, boats, and aircraft follow their own reporting process and cannot be included on your income tax return.
How Palm Desert Compares to Neighboring Cities
Rates vary across the Coachella Valley, and the difference matters on larger purchases. La Quinta and Indio match Palm Desert at 8.75 percent. Palm Springs is higher at 9.25 percent, reflecting its own additional local measures.3California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates On an appliance, a vehicle, or a significant piece of art or furniture, the half-percent gap between Palm Desert and Palm Springs adds up fast. The address where the sale is completed (or where a purchase is shipped) determines which city’s rate applies.
If You’re Selling in Palm Desert
Anyone selling tangible goods in Palm Desert, whether from a storefront, a home-based business, or an online shop shipping from a local address, needs a seller’s permit from the CDTFA before the first sale. The permit is free, and you apply through the CDTFA’s online registration system.8California Department of Tax and Fee Administration. Frequently Asked Questions About Seller’s Permits Entering your Palm Desert address accurately during registration matters, because the CDTFA uses it to assign the 8.75 percent rate to your account.
Short-term sellers at farmers markets, street fairs, or holiday pop-ups running fewer than 90 days need a temporary seller’s permit for each location, which you can apply for up to 90 days before the start date.9California Department of Tax and Fee Administration. Temporary Sellers Once registered, you file sales tax returns through the CDTFA’s online system on a monthly, quarterly, or yearly schedule assigned based on your volume, with returns due the last day of the month after the reporting period.10California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns