The sales tax rate in San Francisco County is 8.625 percent, and it applies uniformly everywhere in the city and county, from a downtown furniture showroom to a shop near the waterfront. That figure combines California’s 7.25 percent statewide base with 1.375 percent in voter-approved local district taxes. Retailers charge the full rate at the register, and the California Department of Tax and Fee Administration (CDTFA) splits the revenue among the state, the county, and local funds.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
What Makes Up the 8.625 Percent
Every California county starts at the 7.25 percent statewide base. Of that, 6 percent is the core state sales tax imposed by Revenue and Taxation Code Section 6051, which flows to the state general fund and dedicated programs.2California Department of Tax and Fee Administration. Revenue and Taxation Code 6051 – Imposition and Rate of Sales Tax The other 1.25 percent comes from the Bradley-Burns Uniform Local Sales and Use Tax Law: 1 percent to the city or county where the sale occurs and 0.25 percent to county transportation funds.3California Department of Tax and Fee Administration. Revenue and Taxation Code Section 7200
San Francisco voters have layered another 1.375 percent on top. The largest piece is a half-cent transportation tax first approved in 1989 and most recently extended by Proposition L in 2022, with revenue going to the San Francisco County Transportation Authority.4SFMTA. What’s in Proposition L? The rest funds other civic needs approved at the ballot. CDTFA collects everything together, so you’ll never see these components broken out on a receipt.
What Isn’t Taxed
Several categories of goods escape the 8.625 percent entirely, and the two biggest are food and medicine.
Prescription medications filled by a licensed pharmacist are exempt under Revenue and Taxation Code Section 6369.5California Department of Tax and Fee Administration. Revenue and Taxation Code 6369 – Prescription Medicines Over-the-counter drugs don’t qualify; the exemption is specifically for medicines a provider has prescribed and a pharmacy has dispensed.
Most grocery food meant for home consumption is also tax-free. Fresh produce, meat, dairy, bread, and other staples ring up without tax at the supermarket.6California Department of Tax and Fee Administration. Common Sales and Use Tax Nontaxable Sales and Partial Exemptions The line is temperature and preparation: food sold hot, served as a meal, or eaten on the seller’s premises is fully taxable. Alcohol and carbonated beverages are always taxed regardless of where you drink them.7California Department of Tax and Fee Administration. Sales and Use Tax Regulations – Article 8, Regulation 1602 Food Products
The rule shows up most clearly at a grocery store with a hot deli. Rotisserie chicken behind the warming glass is taxable; raw chicken in the refrigerated case next to it is not.
Online and Out-of-State Purchases
Buying something from a seller outside California doesn’t make the tax disappear. If no sales tax was charged at checkout, you owe the same 8.625 percent as use tax on goods you store, use, or consume in San Francisco.8California Department of Tax and Fee Administration. Sales and Use Tax in California
In practice, most online purchases are already handled. After the 2018 Supreme Court decision in South Dakota v. Wayfair, states gained authority to require out-of-state sellers to collect tax based on economic activity rather than a physical presence.9Supreme Court of the United States. South Dakota v. Wayfair, Inc. California set its threshold at $500,000 in annual sales into the state, which captures every major online retailer; those sellers register with CDTFA and collect the local rate automatically.10California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California Due to the Wayfair Decision
Where use tax still comes up is smaller out-of-state sellers, private-party sales, or things you bought while traveling. If no California tax was charged, you can report and pay on your California income tax return using a lookup table, or pay CDTFA directly.11California Department of Tax and Fee Administration. California Use Tax, Good for You. Good for California The deadline is April 15 of the year after the purchase.12California Department of Tax and Fee Administration. California Use Tax For Personal Use
If You Sell in San Francisco
Any business selling tangible goods in San Francisco needs a California seller’s permit before its first sale. CDTFA issues the permit at no charge through online registration, though it may require a security deposit to cover potential unpaid taxes if the business later closes.13California Department of Tax and Fee Administration. Obtaining a Seller’s Permit The requirement applies equally to sole proprietors, corporations, partnerships, and LLCs, and to retail and wholesale sellers.
Once you’re registered, CDTFA assigns a filing frequency based on your reported or expected taxable sales. It can be annual, quarterly, or monthly, and the agency may change your frequency as your volume shifts.14California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns
Selling Through a Marketplace
If you sell through Amazon, Etsy, eBay, or a similar platform, you generally don’t collect sales tax yourself. Revenue and Taxation Code Section 6042 treats the marketplace facilitator as the seller for tax purposes, so the platform collects the 8.625 percent and remits it to CDTFA.15California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 1.7 You still need a valid permit, but the collection burden sits with the platform for sales made through it.
If You File or Pay Late
Missing a deadline or underpaying triggers interest at 10 percent annually for 2026, applied monthly for each month the balance is overdue.16California Department of Tax and Fee Administration. Interest Rates CDTFA resets this rate every six months based on the federal rate plus three percentage points. Separate penalties for late filing and late payment can stack on top, so a missed quarter gets expensive quickly.
Claiming San Francisco Sales Tax on Your Federal Return
If you itemize federal deductions, you can deduct state and local sales tax instead of state income tax, whichever is larger. For most California residents the income tax deduction wins, but a year with a major purchase can tip the balance.
The IRS Sales Tax Deduction Calculator estimates your annual sales tax from income and location, and you can add receipts for large one-time purchases on top of the table amount.17Internal Revenue Service. Use the Sales Tax Deduction Calculator The combined deduction for state and local taxes is capped; for 2025 through 2029 the cap is $40,000 for filers with modified adjusted gross income under $500,000, up from the previous $10,000, and it phases down at higher incomes.
Because 8.625 percent sits toward the higher end of California combined rates, San Francisco residents accumulate deductible sales tax faster than people in lower-rate counties. If you bought a car, financed a renovation, or made another large purchase during the year, run the comparison both ways before you file.