Ultimate California Sales Tax Guide
| State taxing authority: | California Department of Tax and Fee Administration (CDTFA) |
| 2023 California sales tax rate: | 7.25% |
| Local sales tax rates? | Yes |
| Streamlined Sales and Use Tax Agreement Member? | No |
In this guide, we'll cover all you need to know about California sales tax.
We'll show you the sales tax rates for counties and cities in California and answer a few common questions. We'll also show you how to collect and file sales tax in California.
If you never want to learn or manage any part of sales tax again, our white glove solution will make sure you are always compliant across the entire sales tax lifecycle.
California Sales Tax Rate Range 2023
The minimum state sales tax rate in California is 7.25%. This includes:
- A base state rate of 6% (includes components that go to Local Public Safety Fund, Local Revenue Fund, and others)
- A mandatory local sales tax rate of 1.25% (0.25% for county transportation + 1% for the city or county general fund)
Some counties, cities and towns in California may impose local district tax rates, which are added to this.
The maximum tax rate for each district is 1%. However, there are instances where tax rates of multiple districts can be imposed within cities. For instance, Alameda County has multiple jurisdictions that impose a city tax of 0.5%.
Some cities in Alameda County also have a special additional tax of 4% on revenue.
So, the highest rate in California is 10.75% in cities like Albany, Hayward, and others in Alameda County.
In short, depending on your location, sales tax in California can range anywhere from 7.25% to 10.75%.
How to Calculate Sales Tax in California
To calculate sales tax accurately in California, you'll have to add these rates:
- State tax
- District tax (also known as county/city tax)
- Special tax
Take San Francisco, for instance.
The sales tax rate in San Francisco is 8.625%. This includes
- The California state rate of 6%
- A county rate of 0.25%
- A special local tax of 2.375%
This brings the total sales tax to 8.625%.
Sales Tax Rates in California by County
Here are the minimum California tax rates on sales for the counties within the state:
| County | Rate |
| Alameda County | 10.250% |
| Alpine County | 7.250% |
| Amador County | 7.750% |
| Butte County | 7.250% |
| Calaveras County | 7.250% |
| Colusa County | 7.750% |
| Contra Costa County | 8.750% |
| Del Norte County | 7.250% |
| El Dorado County | 7.250% |
| Fresno County | 7.980% |
| Glenn County | 7.250% |
| Humboldt County | 7.750% |
| Imperial County | 7.750% |
| Inyo County | 7.750% |
| Kern County | 7.250% |
| Kings County | 7.250% |
| Lake County | 7.250% |
| Lassen County | 7.250% |
| Los Angeles County | 9.500% |
| Madera County | 7.750% |
| Marin County | 8.250% |
| Mariposa County | 8.750% |
| Mendocino County | 7.875% |
| Merced County | 7.750% |
| Modoc County | 7.250% |
| Mono County | 7.250% |
| Monterey County | 7.750% |
| Napa County | 7.750% |
| Nevada County | 7.500% |
| Orange County | 7.750% |
| Placer County | 7.250% |
| Plumas County | 7.250% |
| Riverside County | 7.750% |
| Sacramento County | 7.750% |
| San Benito County | 8.250% |
| San Bernardino County | 7.750% |
| San Diego County | 7.750% |
| San Francisco County | 8.625% |
| San Joaquin County | 7.750% |
| San Luis Obispo County | 7.250% |
| San Mateo County | 9.375% |
| Santa Barbara County | 7.750% |
| Santa Clara County | 9.125% |
| Santa Cruz County | 8.500% |
| Shasta County | 7.250% |
| Sierra County | 7.250% |
| Siskiyou County | 7.250% |
| Solano County | 7.375% |
| Sonoma County | 8.500% |
| Stanislaus County | 7.875% |
| Sutter County | 7.250% |
| Tehama County | 7.250% |
| Trinity County | 7.250% |
| Tulare County | 7.750% |
| Tuolumne County | 7.250% |
| Ventura County | 7.250% |
| Yolo County | 7.250% |
| Yuba County | 7.750% |
Sales Tax Rates in California by City
Here are the minimum California tax rates on sales for some of the cities in the state:
| City | County | Rate |
| Alameda | Alameda County | 10.75% |
| Albany | Alameda County | 10.75% |
| Fremont | Alameda County | 10.25% |
| Oakland | Alameda County | 10.25% |
| Shingle Springs | El Dorado County | 7.75% |
| Fresno | Fresno County | 8.35% |
| Ferndale | Humboldt County | 8.5% |
| Bakersfield | Kern County | 8.25% |
| Glendale | Los Angeles County | 10.25% |
| Long Beach | Los Angeles County | 10.25% |
| Los Angeles | Los Angeles County | 9.50% |
| Santa Clarita | Los Angeles County | 9.50% |
| Canby | Modoc County | 7.25% |
| Grass Valley | Nevada County | 8.25% |
| Anaheim | Orange County | 7.75% |
| Garden Grove | Orange County | 8.75% |
| Huntington Beach | Orange County | 7.75% |
| Irvine | Orange County | 7.75% |
| Santa Ana | Orange County | 9.25% |
| Moreno Valley | Riverside County | 7.75% |
| Riverside | Riverside County | 8.75% |
| Sacramento | Sacramento County | 8.75% |
| Fontana | San Bernardino County | 7.75% |
| Ontario | San Bernardino County | 8.75% |
| Rancho Cucamonga | San Bernardino County | 7.75% |
| San Bernardino | San Bernardino County | 8.75% |
| Chula Vista | San Diego County | 8.75% |
| Oceanside | San Diego County | 8.25% |
| San Diego | San Diego County | 7.75% |
| San Francisco | San Francisco County | 8.63% |
| Stockton | San Joaquin County | 9.00% |
| San Jose | Santa Clara County | 9.38% |
| Santa Rosa | Sonoma County | 9.25% |
| Modesto | Stanislaus County | 8.88% |
| Oxnard | Ventura County | 9.25% |
| Olivehurst | Yuba County | 8.25% |
Now, let's take a look at the use tax in California.
What is California Use Tax?
While sellers in California have to pay tax on sales revenue from items they sell, buyers don't always purchase items from California.
That's where use tax comes into play.
When Californian buyers (businesses or residents) purchase tangible goods or personal property outside the state for use in California, they're liable to pay use tax.
Use tax is charged at the same rate as sales tax and only applies when sales tax is not charged on a transaction.
Californian buyers can pay use tax along with their annual corporate and personal income tax filing to the California Franchise Tax Board.
Now, let's look at how collecting sales tax works in California.
FAQs on Collecting California Sales Tax from Customers
Here are a few common questions you may have about collecting sales tax in California:
Do I Have to Collect California Sales Tax from Customers?
If you're a retailer in California who meets the following conditions, you're liable to collect tax on sales revenue from your customers:
- You have sales tax nexus in California.
- You sell taxable products or services in California and generate taxable income.
What Creates Sales Tax Nexus in California?
You have sales tax nexus according to California tax law if you meet one of the following conditions:
1. Your business has a physical presence: A location (even working from home), an office, store, warehouse, inventory, employees, contractors, and other tangible connections to the state create California sales tax nexus.
OR
2. Your business has economic nexus: If you have $500,000 in sales income from buyers in the state in the previous or current calendar year - your business has economic nexus.
You can find California's sales tax nexus law here.
Learn more about sales tax nexus and when that means you're required to collect sales tax here.
Do I Have to Collect Sales Tax from California Customers if I Sell on Amazon, Walmart, Ebay or Etsy?
Marketplaces like Amazon and Walmart must collect sales tax on behalf of third-party sellers, according to California tax law.
However, marketplace sales income generally counts toward the economic nexus sales tax threshold in a state.
If you exceed California's $500,000 sales income threshold, you'll be required to collect sales tax on any non-marketplace California sales you make.
Learn more about what marketplace facilitator sales tax means for e-commerce sellers here.
Taxable Products in California
Usually, most tangible personal property is subject to sales tax in California as well as in other states.
This refers to items like clothing, toys, furniture, antiques and giftware. However, some states avoid taxes on necessities like medication and food items.
But what about intangible goods?
Digital goods like movies, music and eBooks, as well as SaaS products are subject to sales tax in certain states, but not in California.
However, the taxation of services can be a little more complex.
Let's take a detailed look at what items are taxed in California:
Are Groceries Taxable in California?
Like most states, groceries are not taxable in California. Additionally, essentials like prescription medication and certain medical devices are not subject to sales tax in California.
Learn more about sales tax on groceries across the United States.
Is Clothing Taxable in California?
Clothing is subject to sales tax in California.
However, some charitable organizations or thrift stores that provide clothing to the needy are exempt from charging sales tax on those items.
Are Digital Products Taxable in California?
California doesn't enforce a sales tax on digital goods.
In the U.S., digital goods generally consist of the following:
- Video game downloads
- Movie and music downloads
- Ringtones
- Digital books and eBooks
Discover how other states tax digital products.
Is Software-As-A-Service (Saas) Taxable in California?
California doesn't collect sales tax on SaaS products.
Since SaaS is a relatively new concept, many states haven't arrived at a conclusion on whether to collect sales tax on these products.
However, SaaS companies are liable to pay income tax in California.
Some states that tax SaaS products can even change their tax rates based on whether the product is used in a personal or commercial setting.
Learn about how various states treat sales tax on SaaS.
Are Services Taxable in California?
Services are generally non-taxable in California.
This includes services like digital marketing, content writing, videography and software building.
However, there are some exceptions.
California follows the True Object concept.
This means that the amount received for services that are a part of the sale or lease of tangible personal property (TPP) are taxable —- but only if the true object of the sale is the transfer of the TPP.
However, if the true object is a service, sales tax does not apply even though some property may be transferred.
What Items Are Tax-Exempt in California?
According to the California Department of Tax and Fee Administration (CDTFA), there are several categories of items that have a sales tax exemption.
These are:
- Items considered necessities of life
- Items that provide a general public benefit
- Items that provide an industry benefit
- Items excluded by definition
- Other items
These can include items like groceries, prescription medicine and medical devices, as well as items specific to industries like entertainment and energy.
Now, if your business has nexus in California and sells taxable products in California - you'll need to obtain a California sales tax license. Let's take a look at how you can get one.
How to Register for a California Seller's Permit
You can register for a California seller's permit online at the California Department of Tax and Fee Administration website.
Want to learn more about seller's permits and how you can get one in another state?
Read our guide here.
Now, let's look at a few common questions about the seller's permit in California.
Do I Need a California Seller's Permit if I'm Only a Wholesaler?
Yes.
Even though wholesalers who don't offer items for retail aren't required to collect sales tax, they still need to register for a California seller's permit. This is also known as a California resale certificate or California sales tax exemption certificate.
Do I Need a California Seller's Permit if I Only Sell Temporarily in the State?
Yes.
Seasonal or temporary sellers, like Christmas tree farms or craft fair vendors, are required to register for a temporary California seller's permit.
These permits are generally only issued if your sales activity will last no longer than 30 days at one location.
How to Collect Sales Tax in California
California has two different tax types that apply to most sales:
- Sales and use tax
- District transaction tax (this includes cities/local governments, counties and other special taxing jurisdictions)
In a nutshell, this means that California tax is a little more complicated than other states, and the collection of sales tax works differently based on buyer and seller locations.
How to Collect Sales Tax on Intrastate California Sales
A California sale is considered “intrastate” if the buyer and seller are both located in California or if the buyer is in California and the item ships from a location (a store, warehouse, etc.) in California.
In this case, the seller collects retail sales tax.
In California, you also need to collect a “district tax” on sales to buyers who live in the same district where you "engage in business."
The place where you engage in business can mean an office or store, employee, inventory, or other business activities.
You can find more information here.
If the buyer is located outside the district where your business is located, then you are only required to charge the California state sales tax rate to those buyers.
How to Collect Sales and Use Tax on Interstate California Sales
A California sale is considered "interstate" if the item ships from outside California and the seller isn't otherwise engaged in business in the state.
In this case, the seller generally collects sales tax based on the rate at the buyer's location.
Should You Collect Sales Tax on Shipping Charges in California?
No.
Shipping charges are not subject to sales tax in California as long as the delivery is made by a common carrier, U.S. mail or an independent contractor.
However, this only applies if the shipping charge is the same as the actual charge for delivery.
Now, let's look at how you can pay and file your sales taxes in California.
How to File and Pay Sales Tax in California
When you register for a California seller's permit, the state assigns your due dates and a filing frequency (monthly, quarterly, or annually).
California also has a unique “Quarterly Prepay” sales tax filing basis. This is where retailers are required to “prepay” sales tax monthly but only file returns every quarter.
When your sales tax due date rolls around, you'll have to calculate how much sales tax you collected from buyers in the state and in each district.
Then, you can file your California sales tax return online at the California Department of Tax and Fee Administration website. You'll be asked to pay your sales tax amount due after filling out the sales and use tax return.
Sounds complicated and time-consuming — like a job for an expensive tax professional?
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Now, let's look at some FAQs about filing and paying sales taxes in California.
I Didn't Collect Any California Sales Tax This Period. Do I Still Need to File a Return?
Yes.
Though there are no penalties associated with not filing a “zero return” you will continue to receive notices from the state until you file a return.
Failing to respond to these notices may result in the cancellation of your seller's permit.
What Is the Penalty for Filing and/or Paying California Sales Tax Late?
California levies a 10% penalty for failing to file sales tax on time and a 10% penalty for failing to pay on time.
Can I Get an Extension on Filing My California Sales Tax Return?
Yes, you may request a filing extension for up to one month after the sales tax return due date. This also means any penalties will be waived.
Can I Amend a California Sales Tax Return?
You can sometimes later discover that you made a mistake on your California sales tax return.
This could mean you owe extra sales and use tax, plus penalties and interest. Or this could mean that you are due a refund or a credit on your next sales and use tax payment.
Either way, you can contact the CDTFA regarding amending your tax return.
How Often Will I Be Required to File and Pay Sales Tax in California?
In California, the higher your sales tax liability, the more often you'll be required to file and pay. For example, businesses that have average taxable sales of over $17,000 per month must prepay their taxes monthly, as well as submit a quarterly return.
California Sales Tax Due Dates
Below are California's sales tax filing due dates for 2023.
Due dates that fall on the weekend or holidays are due the following business day.
California Monthly Sales Tax Filing Due Dates 2023
Monthly filing due dates in California are rare. Most sales and use tax filers are required to file quarterly even though they may be asked to prepay sales tax monthly.
| Taxable Period | Filing Due Date |
| January 2023 | February 28, 2023 |
| February 2023 | March 31, 2023 |
| March 2023 | May 1, 2023 |
| April 2023 | May 31, 2023 |
| May 2023 | June 30, 2023 |
| June 2023 | July 31, 2023 |
| July 2023 | August 31, 2023 |
| August 2023 | October 2, 2023 |
| September 2023 | October 31, 2023 |
| October 2023 | November 30, 2023 |
| November 2023 | January 2, 2023 |
| December 2023 | January 31, 2024 |
California Quarterly Prepay Sales Tax Filing Due Dates
| Taxable Period | Prepayment Due Date | Filing and Payment Due Date |
| January 2023 | February 24, 2023 | - |
| February 2023 | March 24, 2023 | - |
| Q1 2023 | - | May 1, 2023 |
| April 2023 | May 24, 2023 | - |
| May 1 - June 15, 2023 | June 26, 2023 | - |
| Q2 2023 | - | July 31, 2023 |
| July 2023 | August 24, 2023 | - |
| August 2023 | September 25, 2023 | - |
| Q3 2023 | - | October 31, 2023 |
| October 2023 | November 24, 2023 | - |
| November 2023 | December 26, 2023 | - |
| Q4 2023 | - | January 31, 2024 |
California Quarterly Sales Tax Filing Due Dates
| Taxable Period | Filing Due Date |
| January - March 2023 | May 1, 2023 |
| April - June 2023 | July 31, 2023 |
| July - September 2023 | October 31, 2023 |
| October - December 2023 | January 31, 2024 |
California Annual and Fiscal Annual Sales Tax Filing Due Dates
| Taxable Period | Filing Due Date |
| July 1, 2022 - June 30, 2023 | July 31, 2023 |
| January 1, 2023 - December 31, 2023 | January 31, 2024 |
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The sales tax filing process can be very resource-intensive.
To manage the process accurately, you will have to spend time and money that could otherwise be spent running your core operations.
With a white glove solution like Zamp, you'll never have to learn, manage or touch any part of the sales tax process again! Just let the platform & team of sales tax experts handle all the work so you can focus on running your business.
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- California Sales Tax Rate Range 2023
- FAQs on Collecting California Sales Tax from Customers
- Taxable Products in California
- How to Register for a California Seller's Permit
- How to Collect Sales Tax in California
- How to File and Pay Sales Tax in California
- I Didn't Collect Any California Sales Tax This Period. Do I Still Need to File a Return?
- What Is the Penalty for Filing and/or Paying California Sales Tax Late?
- Can I Get an Extension on Filing My California Sales Tax Return?
- Can I Amend a California Sales Tax Return?
- How Often Will I Be Required to File and Pay Sales Tax in California?
- California Sales Tax Due Dates
- Never Touch Sales Tax Again With Zamp
