California sales tax guide: the 7.25% state rate and local add-ons
The 7.25% state sales tax rate in California, how local rates add on top, and a worked example for shoppers and sellers.
Key facts
| Place | California |
|---|---|
| Sales tax | State sales tax |
| Standard rate on file | 7.25% |
| Multiply net price by | 1.0725 |
| Tax share of a gross price | 6.76% |
| Currency | USD |
State rate versus combined rate
California sets a statewide base rate of 7.25%. Counties, cities and special districts in many states add their own local rates, so the rate at the register can be higher than the state rate. Always use the combined rate for the address where the sale takes place, or where the goods are delivered.
Worked example
Here is the calculation with sample figures. Change any number in the California Sales Tax Calculator to run your own.
| Price | $100.00 |
| Tax rate (%) | 7.25% |
| Tax | $7.25 |
|---|---|
| Price incl. tax | $107.25 |
What is taxable
Most tangible goods are taxable. Groceries, prescription drugs and some clothing are exempt or taxed at a lower rate in many states, and services are taxed in some states but not others. Check the California department of revenue guidance for your product.
Sellers and nexus
Since 2018, states can require remote sellers to collect sales tax once they pass an economic nexus threshold based on sales or transactions in the state. If you sell online into California, check whether you have crossed it.
Quick reference at 7.25%
Common amounts in California, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| $10.00 | $0.72 | $10.72 | $9.32 |
| $50.00 | $3.62 | $53.62 | $46.62 |
| $100.00 | $7.25 | $107.25 | $93.24 |
| $250.00 | $18.12 | $268.12 | $233.10 |
| $500.00 | $36.25 | $536.25 | $466.20 |
| $1,000.00 | $72.50 | $1,072.50 | $932.40 |
| $5,000.00 | $362.50 | $5,362.50 | $4,662.00 |
How California compares
Standard rates on file for other states. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 7.25% |
|---|---|---|
| Alaska | 0% | lower |
| Arizona | 5.6% | lower |
| Arkansas | 6.5% | lower |
| Colorado | 2.9% | lower |
| Connecticut | 6.35% | lower |
| Delaware | 0% | lower |
Using the calculator step by step
- Open the California Sales Tax Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 7.25%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Standard rate
- The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
- Effective rate
- Total tax divided by total income, the average rate you actually pay.
- Net amount
- The amount before tax is added. On an invoice it is the figure the tax is calculated on.
- Exempt supply
- A sale that falls outside the tax entirely. No tax is charged and input tax usually cannot be reclaimed.
- Withholding
- Tax deducted at source, by an employer or payer, before the money reaches you.
Common mistakes to avoid
- Charging only the state rate where local taxes apply.
- Assuming services are never taxable.
- Ignoring economic nexus when selling online.
Run your own numbers. The California Sales Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
What is the sales tax rate in California?
The state base rate on file is 7.25%. Local rates may apply on top.
Do I pay sales tax on online purchases in California?
Usually yes, at the rate for your delivery address, when the seller is required to collect it.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.