California’s statewide sales tax rate is 7.25%, but most residents pay more than that. Local district taxes added by cities and counties push the combined rate higher in many areas, sometimes significantly. The total rate you pay depends on where the purchase is made.
How the 7.25% Base Rate Works
Every taxable purchase in California includes the 7.25% statewide rate as a floor. This rate is set by state law and applies uniformly regardless of where you shop. Some rural counties with no additional local taxes charge exactly 7.25%, including Alpine, Kings, Lake, Lassen, Sutter, Tehama, Trinity, Tuolumne, and Ventura counties.
Most populated areas, however, layer additional district taxes on top of the base rate. These local taxes are typically approved by voters through ballot measures and fund transportation projects, public safety, infrastructure, or general city and county budgets. A single location can have multiple overlapping district taxes from different measures, which is why combined rates vary so much from one city to the next.
Combined Rates Across the State
Because cities and counties regularly pass new tax measures, combined rates shift frequently. As of April 2026, the California Department of Tax and Fee Administration (CDTFA) maintains updated rate tables for every jurisdiction. Several areas saw increases take effect in early 2026 after voters approved new district taxes in the November 2025 election. Santa Clara County, for example, added a 0.625% countywide tax that affects cities like San Jose, Campbell, Los Gatos, and Milpitas.
Combined rates in major metro areas commonly fall between 9% and 10.75%. To find the exact rate for a specific address, you can use the CDTFA’s online rate lookup tool at cdtfa.ca.gov, which accounts for all overlapping district taxes at that location. This is especially useful for businesses that need to charge the correct rate, but it’s also handy if you’re curious why one receipt looks different from another after shopping in a neighboring city.
What Is and Isn’t Taxed
Sales tax applies to most purchases of physical goods, from electronics and clothing to furniture and vehicles. But several important categories are exempt.
- Groceries: Food products for human consumption are generally exempt, as long as they’re sold in an unheated condition and not served as a prepared meal. A bag of rice from the grocery store is tax-free. A hot rotisserie chicken or a burrito from a restaurant is taxable. Hot coffee sold for a separate price and hot bakery items are exceptions that remain exempt.
- Prescription medicine: Prescription drugs are not subject to sales tax.
- Repair and installation labor: If a mechanic or contractor itemizes the labor portion of a bill separately from the parts, the labor charge is generally not taxed. Fabrication labor (making a custom product) is taxable, though.
- Items shipped out of state: If you buy something in California but it’s shipped to a location outside the state, the sale is generally exempt as interstate commerce.
- Sales to the U.S. government: Purchases made by federal agencies and instrumentalities are exempt.
The grocery exemption is the one most people encounter daily. The key distinction is whether food is “ready to eat” versus something you take home and prepare yourself. A sandwich from a deli counter is taxable. A loaf of bread is not.
Use Tax on Out-of-State Purchases
If you buy something from an out-of-state or online retailer that doesn’t collect California sales tax, you owe what’s called “use tax.” The rate is the same as the sales tax rate for your location, and the same exemptions apply. If groceries aren’t taxed in a store, they aren’t subject to use tax either.
Most large online retailers now collect California sales tax automatically, so use tax mainly comes up with smaller out-of-state sellers, private-party purchases from other states, or items bought while traveling. The simplest way to report and pay use tax as an individual is on your California state income tax return, which includes a worksheet for calculating what you owe. You can also pay directly through the CDTFA’s online portal.
If your annual out-of-state purchases subject to use tax exceed $10,000 (excluding vehicles, vessels, and aircraft), you’re classified as a “qualified purchaser” and must register with the CDTFA to report and pay use tax directly rather than through your income tax return. This threshold has been in effect since January 1, 2024, and runs through the end of 2028.
Why Your Rate Changes by Location
New district taxes take effect throughout the year as ballot measures are approved and implemented. The CDTFA updates its rate tables quarterly, with the most recent update covering changes effective April 1, 2026. In that update alone, multiple cities saw rate increases ranging from 0.25% to 1.0% based on measures passed by local voters.
This means the rate you paid last year at a particular store may not be the rate you pay today. If a receipt looks higher than expected, check whether your city or county recently passed a new measure. The CDTFA’s website lists every rate change along with the specific ballot measure that authorized it, so you can trace exactly where the tax is going.