Ultimate San Francisco Sales Tax Guide
In this guide, we'll cover the sales tax rate for San Francisco, California.
We'll tell you who needs to collect sales tax in San Francisco and cover other questions you may have.
We'll also explain how you can pay and file sales taxes in San Francisco. And if you feel like filing sales tax returns is too complicated, we'll show you the solution to stay compliant without touching another return again!
San Francisco Sales Tax Rate 2023
San Francisco is a city in California with a sales tax rate of 8.625%. Here's how the sales tax rate is calculated:
| Taxing Jurisdiction | Rate |
| California sales tax | 6.00% |
| San Francisco County sales tax | 0.25% |
| San Francisco City sales tax | 1.00% |
| Special tax | 1.375% |
| Total sales tax | 8.625% |
The San Francisco sales tax rate was increased from 8.5% to 8.625% from 1st July 2021. Although often confused, sales tax is different from gross receipts tax.
Sales Tax Rates in San Francisco by Zip Code
Here are the sales tax rates that apply to various zip codes across San Francisco:
| Jurisdiction | Zip code | Total Tax Rate |
| San Francisco Tourism Improvement District | 94102, 94103, 94104, 94105, 94107, 94108, 94109, 94111, 94119, 94120, 94126, 94129, 94130, 94133, 94137, 94139, 94141, 94142, 94143, 94144, 94145, 94151, 94158, 94160, 94161, 94163, 94164, 94172, 94177 | 8.625% |
| San Francisco Tourism Improvement District (Zone 2) | 94110, 94114, 94115, 94116, 94117, 94118, 94121, 94122, 94123, 94124, 94127, 94131, 94132, 94140, 94146, 94147, 94159, 94188 | 8.625% |
How Does Sales Tax in San Francisco Compare to the Rest of California?
California's lowest sales tax rate is 7.250% in cities like Sutter, Tahoma, Rocklin and more.
The San Francisco sales tax rate of 8.625% is around 19% higher than the lowest rate in California.
The only other locality outside of San Francisco with an 8.625% sales tax rate is Turlock in Stanislaus County, located in the central region of Northern California.
California's highest sales tax rate is 10.750% (in some cities in Alameda County) — around 25% higher than the rate in San Francisco.
Here's how San Francisco sales tax rates compare to some other major cities in California:
| City | County | Sales Tax Rate |
| Al Tahoe | El Dorado County | 7.250% |
| Adin | Modoc County | 7.250% |
| Anaheim | Orange County | 7.750% |
| San Diego | San Diego County | 7.750% |
| Bakersfield | Kern County | 8.250% |
| Fresno | Fresno County | 8.350% |
| San Francisco | San Francisco County | 8.625% |
| Sacramento | Sacramento County | 8.750% |
| Stockton | San Joaquin County | 9.000% |
| Ben Lomond | Santa Cruz County | 9.000% |
| San Jose | Santa Clara County | 9.375% |
| Los Angeles | Los Angeles County | 9.500% |
| Agoura | Los Angeles County | 9.500% |
| Long Beach | Los Angeles County | 10.250% |
| Oakland | Alameda County | 10.250% |
| Newark | Alameda County | 10.750% |
Do I Need to Collect Sales Tax in San Francisco?
If your business activity creates California state sales tax nexus, you're required to collect sales tax from customers in San Francisco.
What Creates Sales Tax Nexus in San Francisco?
Since San Francisco is situated within California, it follows California state tax law. This means San Francisco follows Californian sales income nexus laws.
There are several aspects to California's sales tax nexus law:
- Physical Location: Corporations have sales nexus when they have a physical presence like an office, warehouse or distribution center in California.
- Economic Nexus: If a business makes $500,000 in sales within California in a given year, usually selling tangible real property — it has economic nexus.
- Employee Presence: If you have a California resident as a salesperson or any other employee, you're liable to pay taxes.
- Affiliate Nexus: If your business has any affiliates in California, you're liable to collect and pay taxes.
- Trade Show Nexus: If a business is present in California for a trade show that lasts more than 15 days in one calendar year, they have sales tax nexus.
Want to learn more about sales tax in California?
Read our ultimate guide to California sales tax.
What Products Are Exempt from San Francisco Sales Tax?
San Francisco follows the same exceptions for sales tax as provided in California sales tax law. There are no separate exemptions applying to San Francisco.
According to California tax law, the following items have a sales tax exemption:
- Groceries
- Feminine hygiene products
- Clothes donated by thrift stores or charitable organizations
- Diapers
- SaaS (if no transfer or sale of tangible personal property occurs)
- Digital services
Services (including digital marketing, software creation, content writing, and other similar services) are generally exempt for sales tax purposes.
However, if any service is inseparable from the sale of a physical product (like fabricating, assembling and setting up equipment), they're subject to sales tax.
Who Needs a Sales Permit in San Francisco?
You need a sales permit if you:
- Engage in business in the State of California
AND
- Plan on selling or leasing a form of tangible personal property usually subject to retail sales tax.
Sales permits for San Francisco are issued by the California Department of Tax and Fee Administration (CDTFA), which is responsible for collecting several kinds of taxes, including sales tax and use tax.
The CDTFA differs from the California Franchise Tax Board (state board), which deals with state income tax, and the San Francisco Assessor-Recorder's Office, which collects transfer tax from property ownership changes.
Since these permits are issued state-wide, you won't need a separate permit to sell in any local government area within California.
How to Collect Sales Tax in San Francisco
The easiest way to collect sales tax is to charge your customers the tax amount at the point of sale.
The responsibility of collecting sales tax lies with the seller, so regardless of whether you collect sales tax from customers, you're liable to pay tax on your taxable income to the CDTFA.
How to File and Pay Sales Tax in San Francisco
You can pay sales tax in San Francisco in two ways.
First, you can choose to pay sales tax through the CDTFA website. You can make the payment and file your online sales tax return — and the state then remits the correct sales tax revenue amounts to San Francisco County and city.
If you need personal assistance — you can always visit your local Internal Revenue Service (IRS) branch.
Want a better option to file sales taxes?
Say hello to Zamp!
Zamp is a managed solution that automates and manages your entire sales tax filing and compliance process!
When you sign up with Zamp, you get white-glove onboarding, proactive nexus monitoring, rooftop accurate calculations, and other professional services from sales tax experts — no matter where you are selling in the United States.
You'll also get unlimited sales tax filings and registrations — which means you never have to worry about touching sales tax returns ever again.
Just focus on your clients and business, and let Zamp take care of the rest!
