Ultimate San Jose Sales Tax Guide
In this guide, we'll explore the sales tax rates of San Jose, California.
We'll walk you through how the sales tax rate is determined for San Jose and address some common questions you may have. We'll also cover how to collect, audit, and remit sales tax in San Jose.
Plus, we’ll share the best solution that will ensure you are always compliant across the entire sales tax lifecycle.
San Jose Sales Tax Rate 2023
San Jose is located in Santa Clara County in California, United States, and has a sales tax rate of 9.375%. This includes state and local sales tax rates.
Here is the breakdown of the San Jose sales tax:
| Taxing Jurisdiction | Rate |
| California sales tax | 6.000% |
| Santa Clara County sales tax | 0.250% |
| San Jose tax | 0.250% |
| Special tax | 2.875% |
| Total sales tax | 9.375% |
Note: A sales tax increase was effective from July 1st, 2021, when it was increased from 9.25% to 9.375%.
Sales Tax Rates in San Jose by Zipcode
Let’s see the sales tax rates in different zip codes of San Jose:
| Zip code | Total Tax Rate |
| 95111, 95116, 95122, 95123, 95128, 95133, 95155, 95159, 95191, 95101, 95117, 95119, 95120, 95121, 95124, 95127, 95129, 95130, 95132, 95135, 95136, 95138, 95139, 95141, 95148, 95150, 95151, 95152, 95153, 95154, 95156, 95157, 95158, 95160, 95161, 95164, 95170, 95173, 95190, 95193, 95110, 95112, 95126, 95131, 95134 | 9.375% |
How Does the San Jose Sales Tax Compare to the Rest of California?
California’s minimum sales tax rate is 7.25%, which applies to cities like Newcastle, Nashville, and others. This is higher than in other states like North Carolina or New York.
The San Jose sales tax rate is around 30% higher than these cities. Other cities in Santa Clara County, like Palo Alto, share the same sales tax rate as San Jose.
Meanwhile, the highest California sales tax rate is 10.75% in cities like Newark and Albany in Alameda County. This is 14.5% higher than the sales tax rate in San Jose.
To give you a better idea, here’s a comparison of San Jose sales tax rates with a few other cities:
| City | County | Sales Tax Rate |
| Rumsey | Yolo County | 7.250% |
| San Diego | San Diego County | 7.750% |
| Salida | Stanislaus County | 7.875% |
| Auberry | Fresno County | 7.975% |
| Selma | Fresno County | 8.475% |
| San Francisco | San Francisco County | 8.625% |
| Sacramento | Sacramento County | 8.750% |
| San Jose | Santa Clara County | 9.375% |
| San Carlos | San Mateo County | 9.375% |
| Agua Dulce | Los Angeles County | 9.500% |
| San Mateo | San Mateo County | 9.625% |
| South San Francisco | San Mateo County | 9.875% |
| Bradford | Alameda County | 10.250% |
What Creates Sales Tax Nexus in San Jose?
San Jose follows the California state sales tax law, as it’s located in California. There are no separate nexus rules specifically for San Jose 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 San Jose Sales Tax?
These tax exemptions are granted by the California sales tax law and apply to San Jose, Santa Clara County, as well. (There are no separate exemptions for San Jose or Santa Clara County 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 San Jose?
A sales permit or sellers permit is typically issued by states in the United States. You can apply for one in California through the California Department of Tax and Fee Administration Website. A sellers 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 San Jose 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 San Jose
Since California is a modified origin-based sales tax state, the same applies to San Jose as well. According to the 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 San Jose
Taxpayers have two options for filing and paying San Jose sales tax returns:
- Pay your sales tax in San Jose 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!
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, hassle-free.
