The sales tax in San Francisco is 8.625 percent as of January 1, 2026. That combined rate applies to most physical goods you buy within city limits, from a pair of shoes to a new television, and it is added to the price at the register.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
What Makes Up the 8.625 Percent
The rate stacks in two layers. California’s statewide base of 7.25 percent applies everywhere in the state and is itself made up of a 6.00 percent state tax, a 1.00 percent local tax under the Bradley-Burns Uniform Local Sales and Use Tax Law, and a 0.25 percent local transportation allocation.2California Department of Tax and Fee Administration. District Taxes (Sales and Use Taxes)
On top of that, San Francisco adds 1.375 percent in voter-approved district taxes that fund regional priorities like the San Francisco County Transportation Authority and the Bay Area Rapid Transit District.3California Legislative Information. California Code RTC Division 2 Part 1.6 Chapter 1 Section 7251 Together those pieces produce the 8.625 percent you see at checkout.
What You Pay Tax On
California sales tax applies to retail sales of tangible personal property, meaning physical items you can see, touch, or measure.4California Department of Tax and Fee Administration. Revenue and Taxation Code Section 6016 – Tangible Personal Property Clothing, furniture, electronics, toys, antiques, giftware, and motor vehicles are all taxable.5California Tax Service Center. What Is Taxable? California does not exempt clothing, so a shirt is taxed the same as a laptop.
When a service produces a physical product, like custom manufacturing or printing, the sale of that finished product is generally taxable. Pure labor or professional services that don’t produce a tangible item usually are not.
Digital Products
Things delivered electronically fall outside the sales tax base. Ebooks, apps, music files, and downloaded software are not considered tangible personal property and are not taxed.6California Department of Tax and Fee Administration. Internet Sales (Publication 109) Nontaxable Sales Cloud-based software you access through a browser without downloading anything is also treated as a non-taxable service. If the same seller also hands you a physical copy, though, such as a backup drive or a printed version, the whole sale typically becomes taxable.
What’s Exempt
A handful of essentials are exempt from the 8.625 percent rate automatically. You don’t need to file anything to get the exemption as a shopper; it simply isn’t charged.
Groceries
Food products bought for home consumption are exempt, including produce, meat, fish, eggs, dairy, cereals, bread, canned goods, candy, and coffee.7California Department of Tax and Fee Administration. Revenue and Taxation Code Section 6359 – Food Products The exemption drops away when food is sold hot, served as a meal, eaten on the seller’s premises, or sold where admission is charged.8California Department of Tax and Fee Administration. Common Sales and Use Tax Nontaxable Sales and Partial Exemptions A bag of groceries from a supermarket is tax-free. A hot sandwich from the same store’s deli counter is fully taxable.
Prescription Medicines
Prescription medicines dispensed by a licensed pharmacist, or furnished directly by a physician, dentist, or podiatrist for a patient’s treatment, are exempt.9California Department of Tax and Fee Administration. Revenue and Taxation Code Section 6369 – Prescription Medicines The exemption also covers certain permanently implanted medical devices like pacemakers, bone pins, and bone screws, and orthotic devices worn as braces or supports. Over-the-counter medicines bought without a prescription are not exempt.
Calculating the Tax
Multiply the taxable price by 0.08625. A $100 purchase carries $8.63 in tax, bringing the total to $108.63. A $45 item adds $3.88. The merchant handles this at the register, so the final price you pay already includes the tax.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
Online and Out-of-State Purchases
Most online shopping is already handled for you. Under California’s Marketplace Facilitator Act, platforms that facilitate more than $500,000 in sales of tangible goods delivered to California in the current or preceding calendar year must register with the California Department of Tax and Fee Administration (CDTFA) and collect tax on the taxable sales they facilitate.10California Department of Tax and Fee Administration. Tax Guide for Marketplace Facilitator Act On Amazon, eBay, and the other large marketplaces, the correct San Francisco rate shows up at checkout automatically.
If you buy a taxable item from a seller that doesn’t collect California tax, you owe the same 8.625 percent as “use tax.” Use tax exists so out-of-state retailers don’t have a price advantage over local businesses; the rate is identical, but the responsibility to report and pay sits with you.11California Department of Tax and Fee Administration. California Use Tax, Good for You. Good for California
You have two ways to pay it. You can report it on your California income tax return filed with the Franchise Tax Board, or file a use tax return directly with the CDTFA.12California Department of Tax and Fee Administration. Use Tax: Guide to Reporting Out-of-State Purchases If your total untaxed purchases for the year were under $1,000, the Franchise Tax Board provides a lookup table on your return that estimates use tax from your adjusted gross income, so you don’t have to track every receipt.13Franchise Tax Board. Use Tax For a single purchase of $1,000 or more, or if you hold a seller’s permit or consumer use tax account, you report the exact amount directly to the CDTFA.