California's Sales Tax Rate, Explained
California's 7.25% state rate stands alone as the highest in the country, and it has held that title for years. On top of it sit county and city taxes plus special district taxes for transportation, public safety, and other local projects, lifting the average combined rate to roughly 9.03%.
The range is wide. San Diego sits at 7.75%, San Francisco at 8.625%, San Jose at 9.375%, and Los Angeles at 9.5%. In parts of Alameda County, including Oakland and San Leandro, overlapping district taxes push the total to 10.75%, among the highest city rates in America. Shoppers near the border can compare with our Arizona Sales Tax Calculator to see the difference a state line makes.
What's Taxed and What's Exempt in California
Most goods are taxable in California: clothing, electronics, furniture, cars, and restaurant meals. The notable exception is groceries. Most unprepared food for home consumption is exempt, which is a real break on the weekly shopping bill given the high base rate.
Prescription drugs are exempt, and most services are not taxed, though California has been debating service taxation for years without acting. Digital downloads are generally not taxed when no tangible product changes hands. Candy, soft drinks, and prepared food are fully taxable even though plain groceries are not.
Worked Example: A $1,000 Purchase in Los Angeles
A $1,000 appliance bought in Los Angeles is taxed at 9.5%: $1,000 x 9.5% = $95.00 in tax, for a $1,095.00 total. That 9.5% stacks the 7.25% state rate with county and city taxes plus district levies for transit and other local programs.
| Item | Amount |
| Purchase price | $1,000.00 |
| California combined rate (Los Angeles) | 9.5% |
| Sales tax | $95.00 |
| Total at checkout | $1,095.00 |
Buy $200 of groceries at the same LA store and the tax is $0, because most unprepared food is exempt. The calculator above separates taxable and exempt items so mixed carts come out right.
Local Taxes: How California's Total Adds Up
California's local taxes come in three flavors: county, city, and special district. District taxes are the wild card. Voters approve them for specific purposes like transportation or homelessness services, and several can overlap in one address, which is how Bay Area totals climb past 10%.
The state caps the combined local and district rate in most areas, but the cap has exceptions and many urban areas sit right at the ceiling. Always use your exact address, because district boundaries rarely follow city lines neatly.
Online Shopping and Marketplace Rules in California
California sets its economic nexus threshold at $500,000 in sales, much higher than the $100,000 used by most states, and there is no transaction-count test. Marketplace facilitators must collect regardless of threshold, so Amazon and eBay orders are taxed correctly at checkout.
California uses origin sourcing for intrastate sellers but destination sourcing for out-of-state sellers, a quirk that mostly matters to businesses. For shoppers, the rule of thumb is simple: online orders are taxed at the rate for your delivery address.
Sales Tax Holidays in California
California does not offer a sales tax holiday and never has. With the highest base rate in the country, a holiday would be expensive for the state budget, and lawmakers have shown no interest in creating one.
The closest thing to a break is the grocery exemption, which is permanent and applies year-round. For big purchases, the smarter move is comparing district rates between nearby cities, where a few blocks can mean a full percentage point.
Frequently Asked Questions
What is California's sales tax rate in 2026?
The state rate is 7.25%, the highest in the nation. The average combined rate is about 9.03%. Los Angeles is 9.5% and parts of the Bay Area reach 10.75%.
Are groceries taxed in California?
Most unprepared groceries are exempt from sales tax. Prepared food, restaurant meals, candy, and soft drinks are fully taxable.
Why is California sales tax so high?
The 7.25% state rate is the highest base rate in the US, and voter-approved district taxes for transit and local services stack on top in most metro areas.
Does California tax online purchases?
Yes. Marketplace facilitators collect at your delivery address rate, and remote sellers over $500,000 in California sales must collect directly.
Does California have a sales tax holiday?
No. California has never offered a sales tax holiday.
Are digital downloads taxed in California?
Generally no, as long as no tangible product is transferred. Streamed and downloaded content usually escapes the tax.
Related California and Sales Tax Tools
Check your take-home pay with the California Paycheck Calculator, since sales tax hits harder when budgets are tight, or estimate a big purchase with our Car Loan Calculator. Compare rates with the main Sales Tax Calculator or browse more free tools at USACalculator.
California rate snapshot (7.25% state rate, 9.03% average combined). Sources: Tax Foundation, State and Local Sales Tax Rates Midyear 2026. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not tax advice.