Sales Tax in Napa, California in 2023

The combined sales tax rate for Napa, California is 7.75%. Your total sales tax rate is the sum of the California state tax (6.25%), the Napa County sales tax (1.00%), and the special tax (0.50%). Napa doesn’t levy a city sales tax.

We'll walk you through how the sales tax rate is determined for Napa and address some common questions you may have. We'll also cover how to collect, audit, and remit sales tax in Napa.

Plus, we’ll share the best solution that will ensure you are always compliant across the entire sales tax lifecycle.

Disclaimer: Our sales tax data is updated on a quarterly basis.

Napa Sales Tax Rate 2023

Napa is located in Napa County in California, United States, and has a sales tax rate of 7.75%. This includes local and state sales tax rates.

Here is the breakdown of the Napa's sales tax:

Sales Tax Rates in Napa by Zip Codes and Districts

Let’s see the sales tax rates in Napa broken down by zip codes and districts:

How Does the Napa Sales Tax Compare to the Rest of California?

Napa has one of the lowest sales tax rates in California. At 7.75%, it is only 0.50% higher than California’s lowest rate (7.25% in places such as Ojai).

To contrast, Napa’s rate is 3.00% lower than California’s highest rate (10.75% in places such as Union City).

The sales tax for most towns and cities in California are somewhere in the middle. For example, Hillsborough has a sales tax rate of 2.13% and Dublin has a rate of 3.00%.

To give you a better idea, here’s a comparison of Napa sales tax rates with a few other cities in California:

You can also compare the sales tax rate of Napa against the California cities closest in population size:

• Upland's sales tax rate is 7.75%
• Tustin's sales tax rate is 7.75%

What Creates Sales Tax Nexus in Napa?

Napa follows the California state sales tax law, as it’s located in California. There are no separate nexus rules specifically for Napa other than the California state tax law.

Read More: Check out this detailed guide on Sales Tax in California.

California state sales tax nexus rules include:

• Economic Nexus: When a business sells goods worth $500,000 or more in the state within the previous or current tax year.
• Physical Location: This could be a warehouse, office, or distribution center.
• Employee Location: If a company has employees or any other type of representation in a particular state or city, they should pay taxes.
• Affiliate Nexus: When an out-of-state business receives substantial referrals from in-state businesses.
• Trade Shows: Businesses with a physical presence at trade shows for over 15 days within one calendar year.
• Tangible Personal Property: Sales of more than $500,000 worth of personal property like equipment, supplies, or IT systems in the previous or current tax year.

What Products Are Exempt from Napa Sales Tax?

The following tax exemptions are granted by the California sales tax law and apply to Napa as well. (There are no separate exemptions for Napa taxpayers.)

• Groceries
• Diapers
• Feminine hygiene products
• Digital services
• SaaS (if there is no transfer or sale of tangible personal property)
• Services like content writing, digital marketing, videography, and software building projects. However, there is an exception. If these services are closely connected to the sale of a physical product, such as equipment assembly, fabrication, or set-up, they may be taxable in California.

Who Needs a Sales Permit in Napa?

A sales permit or seller's permit is typically issued by states in the United States. You can apply for one in California through the CDTFA website. A seller's permit allows you to collect and remit sales tax on your products.

You need one if you:

• Operate as a wholesaler or retailer and conduct business in Napa or anywhere in California.
• Plan to sell or lease tangible personal property that’s usually taxable if sold in retail.

How to Collect Sales Tax in Napa

Since California is a modified origin-based sales tax state, the same applies to Napa as well. According to California sales tax law, two different tax types apply to most sales:

• Sales and use tax: Sales tax is imposed on the sales of products and services. If your clients haven't paid sales tax, you may need to collect and remit use tax on their behalf when they purchase goods.
• District transaction tax: It’s an additional local sales tax imposed on specific state districts on certain transactions. District taxes are approved by voters.

How to File and Pay Sales Tax in Napa

Taxpayers have two options for filing and paying Napa sales tax returns:

• Pay your sales tax in Napa by filing your statewide sales tax return online at the California Department of Tax and Fee Administration Website. Once you file your return, the state will then remit the appropriate amount to the counties and cities. If you prefer in-person assistance with your taxes, you can visit the Internal Revenue Service (IRS).
• Or, you can say goodbye to the tedious paperwork and hello to stress-free sales tax management with Zamp. We help you automate sales tax filings, check your transactions, and manage the nitty-gritty of ongoing compliance without a third-party - wherever you are in the United States!

With our white-glove onboarding, rooftop accurate calculations, proactive nexus monitoring, expert tax professional services, and click-to-approve sales tax registrations & filings, we take care of all the sales tax responsibilities for you. You can focus on your business and clients without worrying about the complexities of sales tax. We also ensure that you always stay compliant.