The sales tax rate in Riverside, California is 8.75%. That rate applies to most physical goods sold within city limits and is made up of three separate taxes stacked together: the 7.25% California state base rate, a 0.50% Riverside County transportation tax, and a 1.0% City of Riverside tax. Groceries and prescription medicines are exempt, and the same 8.75% rate applies as use tax when you buy from an out-of-state seller who doesn’t charge California tax.
Where the 8.75% Comes From
Three layers add up to the rate you see at the register:
- 7.25% is the statewide California base, which every location in the state starts with and which already includes a 1.25% county component.1California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate
- 0.50% is Measure A, a Riverside County transportation tax first approved by voters in 1988 and extended in 2002 through 2039. The money funds highway, road, and transit projects across the county.2Riverside County Transportation Commission. Measure A
- 1.0% is Measure Z, a city tax Riverside voters approved in November 2016. It raises roughly $48 million a year for police, firefighters, paramedics, 911 response, anti-gang and homelessness programs, street repair, parks, libraries, and senior services, and is scheduled to run through 2036 unless extended.3City of Riverside. Implementation of Measure Z
If you ever need to confirm the current rate for a specific address, the CDTFA has an online lookup tool.4California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
What Gets Taxed in Riverside
The 8.75% rate applies to tangible personal property: electronics, clothing, furniture, appliances, sporting goods, and other physical items you can see or touch. Most standalone services, like consulting, accounting, or labor-only repairs, aren’t taxable on their own, though a service that produces a physical product can trigger tax on the product portion.
Groceries and Medicine Are Exempt
Food products intended for human consumption are not taxed in California. That covers produce, meat, dairy, bread, cereal, eggs, canned goods, bottled water, and fruit juice: the kind of food you take home and prepare yourself.5California Legislative Information. California Code Revenue and Taxation Code 6359 – Food Products The exemption does not cover alcoholic beverages, carbonated drinks, or hot prepared food.
Prescription medicines are also exempt, along with specific medical devices and supplies such as insulin and syringes for diabetic patients, hemodialysis products prescribed by a physician, ostomy supplies, and mammary prostheses.6California Department of Tax and Fee Administration. Regulation 1591.1 – Specific Medical Devices, Appliances, and Related Supplies
Restaurant and Prepared Food
Hot prepared food is always taxable, whether you eat it on-site or take it to go. “Hot” means heated above room temperature, and food originally sold hot stays taxable even after it cools.7California Department of Tax and Fee Administration. Tax Guide for Restaurant Owners Cold food like sandwiches, salads, and smoothies is generally exempt when sold to go, but taxable when eaten at the restaurant.
Use Tax on Online and Out-of-State Purchases
If you buy something from an out-of-state or online retailer and the seller doesn’t charge California sales tax, you owe use tax at the same 8.75% Riverside rate. The tax follows the item into California regardless of where you bought it.8California Department of Tax and Fee Administration. California Use Tax
For individuals, use tax on personal purchases is due by April 15 of the year after the purchase. You can report it on your California income tax return or file directly with the CDTFA.9California Department of Tax and Fee Administration. California Use Tax For Personal Use
In practice, most large online retailers already collect California tax. Any retailer, including marketplace sellers, with total California sales above $500,000 in the current or prior calendar year must register with the CDTFA and collect tax, even without a physical presence in the state.10California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 3 – Section 6203 That captures most major sellers, but smaller out-of-state ones may not collect, and the use tax is still yours to pay.
Selling in Riverside: Permits, Filing, and Penalties
If you sell physical goods in Riverside, you need two separate registrations before you open: a state seller’s permit from the CDTFA, and a business tax certificate from the City of Riverside.
State Seller’s Permit
Any business selling or leasing tangible personal property in California must get a seller’s permit from the CDTFA.11California Department of Tax and Fee Administration. Frequently Asked Questions Regarding Seller’s Permits The permit is free and the application is online. You’ll need identifying information for all owners, partners, or corporate officers, your business structure, your expected monthly sales, your NAICS industry code, and your supplier information. Specify your Riverside address so the system assigns the correct 8.75% district rate.
Riverside Business Tax Certificate
Every person or company doing business within Riverside city limits also needs a local business tax certificate (sometimes called a business license) from the city’s Finance Department. This covers retail outlets, wholesalers, manufacturers, service companies, independent contractors, and home-based businesses. The tax must be paid before you start operating. Multiple activities at one location, or multiple locations, each need their own certificate, and the requirement applies to out-of-town companies that do business inside city limits.12City of Riverside. Business License/Tax Frequently Asked Questions Fees vary by business type, so check with the Finance Department for your activity.
When Returns Are Due
The CDTFA assigns your filing frequency, which can be monthly, quarterly, quarterly with prepayments, or annually, based on the sales volume you report when you register. Higher-volume sellers file more often, and a return is due even for periods with zero sales.13California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns
- Quarterly returns are due on the last day of the month after the quarter ends. A January–March return is due April 30.
- Monthly returns are due on the last day of the following month. A June return is due July 31.
- Annual returns for the calendar year are due January 31 of the following year.
- Quarterly prepay filers also submit prepayments on the 24th of the second and third months of each quarter. First-quarter prepayments are due February 24 and March 24, with the full quarterly return due April 30.
If a due date lands on a weekend or state holiday, the deadline moves to the next business day. Electronic funds transfer payments must be initiated by 3:00 p.m. Pacific time on the due date, and other online payments must be completed before midnight.13California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns Returns are filed through the CDTFA’s online portal.14California Department of Tax and Fee Administration. Online Services – File a Return
Penalties and Interest for Late Filing
California charges a 10% penalty for failing to pay the tax you owe by the due date, and a separate 10% penalty for failing to file your return on time. The total penalty for any single return is capped at 10% of the taxes due, so the two aren’t stacked to double the hit. If the CDTFA finds that an underpayment came from negligence or intentional disregard of the rules, another 10% penalty applies to the deficiency.15California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 5 – Section 6484
Interest runs on top. For both halves of 2026, the CDTFA charges interest at 10% per year on unpaid balances, applied monthly from the original due date until you pay in full.16California Department of Tax and Fee Administration. Interest Rates The rate adjusts semiannually, so it can change in January or July. If you can’t pay in full, file on time anyway: that avoids the separate filing penalty.