How California Sales Tax Works
California has the highest statewide base sales tax in the United States at 7.25%. This is composed of:
- 6.00% State General Fund
- 1.00% Mandatory local rate (1.0625% under specific allocations)
- 0.25% County transportation
On top of this 7.25% base, cities, counties, and special districts may add their own district taxes ranging from 0.10% to 3.50%. The combined rate maxes out at 10.75% in Union City (Alameda County) — the highest combined sales tax rate in California.
Combined Sales Tax Rates by Major California City (2026)
| City | Combined Rate | County |
|---|---|---|
| Union City | 10.75% | Alameda |
| Culver City | 10.25% | Los Angeles |
| Santa Monica | 10.25% | Los Angeles |
| Long Beach | 10.25% | Los Angeles |
| Hayward | 9.875% | Alameda |
| Fremont | 9.875% | Alameda |
| Los Angeles | 9.5% | Los Angeles |
| San Jose | 9.375% | Santa Clara |
| Oakland | 9.25% | Alameda |
| Riverside | 9.25% | Riverside |
| Sacramento | 8.75% | Sacramento |
| San Francisco | 8.625% | San Francisco |
| Fresno | 8.25% | Fresno |
| San Diego | 7.75% | San Diego |
| Anaheim | 7.75% | Orange |
| Irvine | 7.75% | Orange |
| CA State Base (Unincorporated) | 7.25% | — |
What's Taxable vs Exempt in California
Generally Taxable
- Most tangible personal property (furniture, electronics, clothing, vehicles)
- Restaurant meals and prepared foods
- Hot foods sold at grocery stores
- Candy, soda, and sugary beverages
- Alcoholic beverages
- Vehicle leases (with exceptions)
Generally Exempt
- Most groceries (unprepared food for human consumption)
- Prescription medications
- Most medical devices and supplies
- Newspapers and periodicals (with conditions)
- Most services (California is mostly a goods-only sales tax state)
- Sales for resale (with valid resale certificate)
Use Tax: When You Owe Tax on Out-of-State Purchases
If you buy something online or out-of-state and don't pay California sales tax, you generally owe use tax at the same rate. This applies to:
- Online purchases from sellers without California presence
- Items purchased in another state and brought into California
- Mail-order purchases without sales tax charged
California residents are required to report use tax on their state income tax return (Form 540) or directly to CDTFA. Most major retailers (Amazon, Walmart, Target) now collect California sales tax automatically.
Frequently Asked Questions
California's statewide sales tax rate is 7.25% in 2026 (the highest base rate in the US). However, local cities and counties add district taxes ranging from 0.10% to 3.50%, bringing the combined sales tax rate to 7.25%-10.75% depending on location. Union City in Alameda County has the highest combined rate at 10.75%.
Los Angeles city sales tax is 9.5% in 2026 (7.25% state + 0.25% Los Angeles County + 2.00% Los Angeles city). Some areas of LA County have higher rates due to additional district taxes. Cities within LA County like Culver City (10.25%) and Santa Monica (10.25%) have higher combined rates.
Most unprepared food groceries (bread, milk, vegetables, etc.) are exempt from California sales tax. However, prepared foods (restaurant meals, hot foods, candy, soda) are subject to sales tax. Cold food sold for off-premises consumption is generally exempt. The rule is complex—check the CDTFA Publication 22 for details.
It depends. If shipping is separately stated and represents the actual cost of delivery, it is generally not taxable in California. However, if shipping is bundled into the price or marked up, the entire amount may be subject to sales tax. See CDTFA Publication 100 for specific guidance.
Sources & Methodology
- California Department of Tax and Fee Administration (CDTFA) — Official sales tax rates by jurisdiction
- CDTFA Publication 105 — District tax rates effective January 2026
- CDTFA Publication 22 — Tax tips for grocery stores
- CDTFA Publication 100 — Shipping and handling charges
- California Revenue and Taxation Code — Sales and Use Tax law
Calculator methodology and city rates reviewed by Benjamin Thomas, CPA, MST. Rates verified against CDTFA publications dated January 2026.