The sales tax in California starts at a statewide minimum of 7.25%, but almost nobody actually pays only that. Local voter-approved district taxes raise the combined rate in nearly every city and county, and the total runs as high as 11.25% in parts of Los Angeles County as of January 2026.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates The tax applies to retail sales of tangible personal property — physical items like furniture, electronics, clothing, and appliances — and retailers collect it at the register and send it to the California Department of Tax and Fee Administration (CDTFA).
Why Your Rate Is Usually Higher Than 7.25%
The 7.25% figure is a floor, not a ceiling. Cities and counties can ask voters to approve additional district taxes on top of it to fund local priorities such as transit, libraries, parks, and affordable housing. General-purpose district taxes need a simple majority at the ballot; taxes earmarked for a specific project need two-thirds.2California Department of Tax and Fee Administration. Implementing New Local Jurisdictions or District Taxes
State law caps combined district taxes within a county at 2%, but the legislature can override that cap for specific jurisdictions.3California Department of Tax and Fee Administration. California Revenue and Taxation Code 7251.1 – Limitation: Rate of Tax That’s how Lancaster and Palmdale in Los Angeles County reach 11.25%, nearly four points above the statewide floor.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates District taxes are generally added in 0.125% increments, and dozens of cities now sit at or above 10%.
Rates change twice a year, on January 1 and April 1, as new voter-approved measures take effect. Retailers must apply the correct combined rate based on where the sale happens, or for shipped goods, where delivery occurs.
How to Look Up Your Exact Rate
Because rates can vary from one block to the next in some metro areas, the fastest way to find your rate is the CDTFA’s lookup tool at maps.cdtfa.ca.gov. Enter a street address and it returns the full combined rate for that location, every district layer included. The CDTFA also publishes an alphabetical list of city and county rates that refreshes quarterly.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
What’s Exempt from Sales Tax
California taxes most tangible personal property. Clothing is taxable here, unlike in some states.4California Department of Tax and Fee Administration. Applying Tax to Your Sales and Purchases A few important categories, though, are carved out.
Groceries
Food bought at a grocery store for home consumption is exempt. That covers produce, meat, dairy, eggs, cereal, bread, and canned goods.5California Department of Tax and Fee Administration. California Revenue and Taxation Code 6359 – Food Products The dividing line is preparation and temperature. Hot prepared foods, items sold for immediate consumption, and restaurant food are all taxable. A cold rotisserie chicken from the refrigerator case is exempt. The same chicken under a heat lamp is not.
Prescription Medications
Drugs prescribed by an authorized provider and dispensed by a registered pharmacist are exempt.6California Department of Tax and Fee Administration. California Revenue and Taxation Code 6369 – Prescription Medicines Over-the-counter medications you buy without a prescription are generally taxable.
Shipping Charges
Whether shipping is taxed depends on how the invoice is written. Delivery charges that are separately stated and reflect the actual cost of getting the item to you can be nontaxable. Handling charges are always taxable. If a seller combines shipping and handling into one line without breaking out the real delivery cost, the whole charge gets taxed.7California Department of Tax and Fee Administration. Shipping and Delivery Charges (Publication 100)
Repair Labor
Repair and installation labor is generally not taxed, but only when the labor charges appear separately on the invoice. If a mechanic bundles parts and labor into one price, the entire amount becomes taxable. Fabrication labor, meaning work done to create or assemble a new product, is always taxable.
Resale Purchases
Businesses buying goods to resell can avoid tax at purchase by giving the supplier a valid resale certificate.8California Department of Tax and Fee Administration. Resale Certificates Tax is instead collected from the end customer when the goods are eventually sold at retail.
Use Tax on Out-of-State Purchases
California also has a use tax that mirrors the sales tax rate. It applies whenever you buy tangible property from an out-of-state seller who doesn’t collect California tax.9California Legislative Information. California Revenue and Taxation Code 6201 – Imposition of Tax The rate matches whatever applies at the location where you use or store the item, including every district tax.
For most personal purchases under $1,000, the easiest way to report use tax is on your California income tax return using Form 540 or 540 2EZ. The return includes a lookup table so you don’t have to track every receipt.10California Department of Tax and Fee Administration. California Use Tax For Personal Use If you already paid sales tax to another state on the same item, you can claim a credit against what you owe California.
Big-ticket purchases work differently. For a vehicle bought out of state, use tax is typically collected when you register with the DMV. If registration doesn’t happen or the right amount wasn’t collected, you have to pay the CDTFA directly by the last day of the month following the purchase.11California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles Vehicles, vessels, and aircraft cannot be reported on your income tax return. Penalty and interest start accruing the day after the due date.
When Online Sellers Collect for You
Most of the time, you won’t owe use tax on online purchases because the seller already collected it. Out-of-state retailers with more than $500,000 in total sales into California during the current or previous calendar year must register with the CDTFA and collect tax on deliveries here.12California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California Due to the Wayfair Decision California uses only a dollar threshold, not a transaction count.
Marketplace facilitators such as Amazon, eBay, and Etsy are treated as the retailer for every sale made through their platforms, so the facilitator collects and remits the tax rather than the individual third-party sellers.13California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 1.7 For most people buying through major platforms, the correct California tax is already in the checkout total.