Ultimate Sacramento City Sales Tax Guide

In this guide, we'll cover everything about sales tax in Sacramento City, California. 

We'll show you how the sales tax rate is calculated for the city and answer a few common questions.

We'll also explore how to collect and remit sales tax to Sacramento.

We’ll also share a solution that will ensure you are always compliant across the entire sales tax lifecycle.

Sacramento City Sales Tax Rate 2023

Sacramento City, located in Sacramento County, California, United States, has an 8.75% sales tax rate. This includes city, county, and state taxes. 

Here’s a breakdown of the Sacramento City sales tax:

Taxing Jurisdiction	Rate
California sales tax	6.00%
Sacramento County sales tax	0.25%
Sacramento City tax	1.00%
District tax	1.50%
Total sales tax	8.75%

Note: The Sacramento City sales tax was 8.25% until March 31st, 2021. It was increased to 8.75% from April 1st, 2021.

Sacramento Sales Tax Rate by Zip Code

Let’s check out how sales tax rate differs in different regions of Sacramento:

Jurisdiction	Zip code	Total Tax Rate
Rancho Cordova Tourism Business Improvement District	95827	8.75%
Sacramento	95816, 95817, 95818, 95819, 95820, 95821, 95822, 95823, 95824, 95826, 95828, 95829, 95831, 95832, 95838, 95841, 95894	8.75%
Sacramento Tourism Marketing District Zone 2	95813, 95825, 95851, 95852, 95853, 95864, 95865, 95866	8.75%
Sacramento Tourism Marketing District Zone 3	95815, 95833, 95834, 95835, 95837	8.75%
Sacramento Tourism Marketing District Zone 4	95830, 95842, 95860	7.75%
Sutter County	95836	7.25%

How Does the Sacramento City Sales Tax Compare to the Rest of California?

The minimum California state sales tax rate is 7.25%, which is higher than other states like South Carolina. This rate applies to cities like Nashville, Tahoe City, and others. 

The Sacramento City sales tax rate is around 20% higher than these cities. Meanwhile, cities like Elk Grove have the same sales tax rates as Sacramento City.

The highest California sales tax rate is 10.75% in cities like Newark and Albany in Alameda County. This is 22% higher than that of Sacramento City.

To understand this better, let’s compare the Sacramento sales tax with a few other cities in various California counties:

City	County	Sales Tax Rate
Alleghany	Sierra County	7.25%
Zenia	Trinity County	7.25%
Elmira	Solano County	7.37%
Alton	Humboldt County	7.75%
Gualala	Mendocino County	7.87%
Annapolis	Sonoma County	8.50%
San Francisco	San Francisco County	8.62%
Sacramento City	Sacramento County	8.75%
Galt	Sacramento County	9.25%
Colma	San Mateo County	9.37%
Mint Canyon	Los Angeles County	9.50%
Redwood City	San Mateo County	9.87%
Avalon	Los Angeles County	10.00%
Glendale	Los Angeles County	10.25%

Did COVID-19 Impact Sales Tax Filing Due Dates in Sacramento City?

Yes, California gave businesses extensions to file and pay sales taxes from December 2020 to April 2021, which also applied to Sacramento City. This was a relief to many small business owners.

What Creates Sales Tax Nexus in Sacramento City?

Except for property tax, income tax and sales tax are collected by the California State.

Since Sacramento City is located in California, it’s subject to the California state sales tax nexus rules. There are no separate nexus rules for Sacramento other than the state tax rules for California.

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

California state sales tax nexus rules include:

• Economic Nexus: A taxable sale occurs when you sell goods worth $500,000 or more in the state within the previous or current calendar 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: A taxable sale happens 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.

What Products Are Exempt from Sacramento City Sales Tax?

These tax exemptions are granted by the California state and apply to Sacramento City as well:

(There are no separate exemptions for taxpayers in Sacramento City.) 

• Groceries
• Diapers
• Feminine hygiene products
• Clothing donated to people in need by charitable organizations or thrift stores
• 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. The exception is – if they are inseparable from the sale of a physical product - like equipment assembly, fabrication, and set-up, such services may be taxable in California. 

Who Needs a Sales Permit in Sacramento City?

Sales permits are issued by states in the United States. So you can apply for a sales permit at the California Department of Tax and Fee Administration Website. You need one if you:

• Are a wholesaler or retailer engaged in business in Sacramento City or anywhere in California.
• Intend to sell or lease tangible personal property that’s usually taxable if sold in retail.

Although there is no registration fee, you may have to pay a security deposit when you apply for a sales permit. 

How to Collect Sales Tax in Sacramento City 

Since California is a modified origin-based sales tax state, the California sales tax rate applies to Sacramento City as well. This means two different tax types apply to most sales:

• Sales and use tax: Sales tax is imposed on the sales of products and services, while use tax is levied on the consumption of goods if your clients haven’t paid sales tax. 

• District transaction tax: It’s an additional tax imposed on specific state districts on certain transactions. District taxes are approved by voters and are usually used to fund transportation districts and local attraction projects. 

How to File and Pay Sales Tax in Sacramento City

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

1. Pay your sales tax in Sacramento City by filing your statewide sales tax return online at the California Department of Tax and Fee Administration Website. The state will then remit the correct amount to the counties & cities. You can also visit the Internal Revenue Service for in-person tax help.

2. Or, you can completely take sales tax filing off your plate and let Zamp automate & manage the entire compliance process for you! 

Our white-glove onboarding, rooftop accurate calculations, proactive nexus monitoring, expert tax professional services, and click-to-approve sales tax registrations & filings will let you focus on your business and clients without breaking a sweat over sales tax while ensuring you are always compliant.