California sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 7.25% |
| Local rates | Average 1.78%, highest 5.25% |
| Average combined rate | 9.03% |
| Groceries | ExemptFood products for human consumption are exempt from state and local tax. Carbonated soft drinks, alcohol and hot prepared food are taxable. |
| Prescription drugs | ExemptMedicines dispensed on a prescription are exempt. Over-the-counter medicines bought without a prescription are taxable. |
| Clothing | Taxed (no tax holiday)Clothing is taxed at the full combined rate. California has no sales tax holiday. |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the CDTFA tax rate lookup by address.
Worked examples
An $899 phone at the average combined rate (9.03%)
| Rate | 7.25% state + 1.78% local = 9.03% |
|---|---|
| Price before tax | $899.00 |
| Sales tax | $81.18 |
| Total | $980.18 |
Working: $899.00 × 9.03% = $81.18. This uses the Tax Foundation average district rate of 1.78% on top of the 7.25% base. In a city with higher district taxes the bill is several dollars more.
Working back from a $107.25 receipt at the 7.25% base rate
| Rate | 7.25% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $7.25 |
| Total | $107.25 |
Working back: $107.25 ÷ 1.0725 = $100.00, so the tax was $7.25. In a place with no district tax, the rate is just the 7.25% base, so a $107.25 total means a $100 price. Use your full district rate if you bought somewhere else.
The 7.25% base rate and district taxes
The California Department of Tax and Fee Administration (CDTFA) splits the 7.25% base rate into 6.00% for the state and 1.25% for local governments: 1.00% for city and county operations and 0.25% for county transportation. On top of that, cities, counties and special districts can adopt district taxes by local vote, each from 0.10% to 2.00%. Combined district taxes in a county are limited to 2% unless the Legislature has authorized more for a specific place, which is why some cities go higher. In the calculator, enter only the district part as the local rate, because the 7.25% is already included.
Where the rate applies
Retail sales are usually taxed at the rate where the store is located. District taxes can follow the delivery address instead, so an online order shipped to a city with a higher district tax can carry that city's rate. California also expects residents to pay use tax at the same rate on taxable purchases from out-of-state sellers that did not charge tax. Remote sellers must register once their California sales pass $500,000 a year. To find the rate for an exact address, use the CDTFA's online lookup.
What is exempt in California
Most food for home consumption is exempt, from bread and milk to fresh produce, but carbonated soft drinks, alcohol and hot prepared food are taxable. Medicines dispensed on a prescription are exempt; over-the-counter medicines are not. Clothing, shoes and electronics are taxed at the full rate year-round, because California does not hold a sales tax holiday.
California vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| California | 7.25% | 9.03% | Exempt |
| Oregon | 0% | 0.00% | No sales tax |
| Nevada | 6.85% | 8.24% | Exempt |
| Arizona | 5.6% | 8.54% | No state tax; most cities tax it |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.