The sales tax rate in Simi Valley, CA is 7.25%. That’s California’s statewide base rate, and because Simi Valley voters have not approved any local district taxes on top, the city sits at the state floor. Many nearby cities don’t. Oxnard and Santa Paula, both in Ventura County, charge 9.25% once their district taxes are added in.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates On a large purchase, that two-point gap is real money.
Where the 7.25% Goes
The rate is built from six separate components. Six percent flows to the state, split across the General Fund and three dedicated funds for public safety, health and social services, and the 2011 realignment of state-to-local services. The remaining 1.25% stays local under the Bradley-Burns Uniform Local Sales and Use Tax Law: 0.25% to county transportation and 1.00% to city or county operations.2California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate
Cities with higher rates have layered voter-approved district taxes on top of this baseline. Simi Valley hasn’t, which is why the receipt total matches the state minimum.
What You Pay Sales Tax On
Sales tax applies to retail sales of tangible personal property: anything physical you can touch, weigh, or measure. Clothing, electronics, furniture, appliances, building materials, and household goods are all taxable at the register.
Labor-only services generally aren’t taxed. If a plumber charges $200 for labor and bills the parts separately, only the parts carry tax. When a job mixes labor and materials on a single invoice, the line gets murkier, and businesses need to break out the charges carefully.
Groceries and Prepared Food
Food bought for home preparation is exempt. Produce, dairy, meat, bread, cereal, and canned goods aren’t taxed at the grocery store.3California Department of Tax and Fee Administration. Tax Guide for Grocery Stores The exemption disappears when food is sold hot or meant for immediate consumption. A rotisserie chicken from the deli case is taxable; the raw chicken from the meat counter is not.4California Department of Tax and Fee Administration. Sales and Use Tax Regulations – Article 8 Anything you eat on the premises is taxable, groceries or not.
Prescription Medicine
Prescription drugs are exempt when prescribed by a licensed physician, podiatrist, or dentist and dispensed by a registered pharmacist. Over-the-counter medications are fully taxed. Insulin, insulin syringes, glucose test strips, and skin puncture lancets furnished by a pharmacist for a diabetic patient’s personal use are also exempt.5California Department of Tax and Fee Administration. Drug Stores – Application of Tax to Medicines and Medical Devices
Digital Goods
California generally doesn’t tax digital products delivered electronically. Software downloads, eBooks, mobile apps, and digital images transmitted over the internet aren’t subject to sales tax as long as nothing physical changes hands.6California Department of Tax and Fee Administration. Internet Sales (Publication 109) Nontaxable Sales The moment a seller tosses in a backup flash drive or a printed copy, the whole transaction becomes taxable. Streaming subscriptions and cloud-based software also sit outside California’s sales tax net under current law.
Vehicles
Cars are taxable, but the mechanics differ. Buy from a California dealership and the dealer collects the tax at the sale. Buy from a private party or from out of state, and you owe use tax instead, collected by the DMV when you register the vehicle. The rate is set by your registration address, so Simi Valley residents pay 7.25% regardless of where the car was actually purchased.
Use Tax on Out-of-State and Online Purchases
If you buy something from an out-of-state seller who doesn’t collect California sales tax, you owe the equivalent “use tax” at the same 7.25% rate. This applies whether you ordered online, by phone, or hauled it home from a trip. The point is to keep people from skipping the local rate by shopping across state lines.
Most online purchases already have the tax built into checkout. Under California’s Marketplace Facilitator Act, platforms like Amazon, eBay, and Etsy are treated as the seller for tax purposes on the transactions they handle, so they collect and remit the tax instead of the individual merchant. California also requires out-of-state sellers to collect once their sales into the state hit $500,000 in the current or preceding calendar year.7California Department of Tax and Fee Administration. Tax Guide for Marketplace Facilitator Act
Where use tax really kicks in is for purchases from smaller sellers who fall outside those systems. Individuals can report use tax on their California state income tax return using the Franchise Tax Board worksheet and lookup table, or pay directly through the CDTFA’s online services.8California Department of Tax and Fee Administration. California Use Tax, Good for You. Good for California
If You Sell in Simi Valley
Anyone selling or leasing tangible personal property in California needs a seller’s permit from the CDTFA before making a first sale.9California Department of Tax and Fee Administration. Obtaining a Seller’s Permit The permit itself is free, though the CDTFA may require a security deposit based on your estimated sales volume. Even temporary sellers at a farmers market or holiday fair need one.
The application asks for a Social Security number or driver’s license number, bank account details, estimated income, and basic business information. If you bought an existing business, you’ll also need the previous owner’s name and permit number.10California Department of Tax and Fee Administration. Do You Need a California Seller’s Permit (Publication 107) – Applying for a Sellers Permit Once registered, you charge customers the 7.25% rate on qualifying sales, hold the money in trust, and remit it on schedule.
Businesses buying inventory for resale can skip paying tax at purchase by giving the supplier a California Resale Certificate (Form CDTFA-230), signed to confirm the goods will be resold before any personal use.11California Department of Tax and Fee Administration. California Resale Certificate Misusing the certificate to dodge tax on personal purchases is a misdemeanor and carries a penalty of 10% of the unpaid tax or $500, whichever is greater. Suppliers should keep every certificate on file; auditors ask for them.
Filing and Payment
The CDTFA assigns a filing frequency at registration: monthly, quarterly, quarterly with prepayment, yearly, or fiscal yearly, depending on your sales volume.12California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns High-volume businesses file monthly; smaller ones usually file quarterly or annually.
Returns go through the CDTFA’s online portal at onlineservices.cdtfa.ca.gov.13California Department of Tax and Fee Administration. Online Services – File a Return You enter gross receipts, subtract non-taxable sales (exempt items, resale transactions, labor-only charges), and the system calculates tax on the remainder. Payments run through electronic funds transfer or credit card on the same portal.
Penalties and Records
Miss a filing deadline and the CDTFA adds a 10% penalty on the unpaid tax. File on time but pay late and that’s a separate 10%. Interest starts the day the balance goes past due.14California Department of Tax and Fee Administration. Having Trouble Paying A business that owes $5,000 and both files and pays late can rack up $1,000 in penalties before interest even starts.
California requires businesses to keep sales tax records for at least four years: receipts, invoices, resale certificates, bank statements, and point-of-sale data.15California Department of Tax and Fee Administration. Regulation 1698 If your POS system overwrites data on a rolling basis, export and archive it before it’s gone. Without records, the CDTFA can estimate your liability from whatever information it does have.
No Sales Tax Holidays in California
Some states run temporary sales tax holidays on school supplies, clothing, or emergency gear. California doesn’t. The legislature could create one, but as of 2026 it hasn’t. Simi Valley shoppers won’t find a tax-free weekend on the calendar for back-to-school or any other season.