How to calculate sales tax in California
The simple formula for sales tax in California, how to include local rates, and how to reverse it from a receipt.
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 |
The formula
Multiply the pre-tax price by the combined rate as a decimal. At the 7.25% state rate, that is the price times 0.0725. Add the result to the price for the total.
Worked example
Here is the calculation with sample figures. Change any number in the California Sales Tax Calculator to run your own.
| Price | $200.00 |
| Tax rate (%) | 7.25% |
| Tax | $14.50 |
|---|---|
| Price incl. tax | $214.50 |
Finding the price before tax
To go backwards from a total, divide by 1.0725. Subtracting 7.25% from the total gives the wrong answer because the tax was calculated on the pre-tax amount.
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
- Marginal rate
- The rate applied to the next unit of income. It decides how much of a raise or a deduction you keep.
- Taxable income
- Income left after allowances and deductions, on which the tax rates are applied.
- Zero rate
- A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
- Tax credit
- An amount subtracted directly from the tax bill, worth its full face value.
- Standard rate
- The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
Common mistakes to avoid
- Subtracting the percentage from a total instead of dividing.
- Forgetting local rates.
Run your own numbers. The California Sales Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
How do I calculate California sales tax?
Price times the combined rate. At the state rate alone, price times 0.0725.
How do I remove sales tax from a California receipt?
Divide the total by 1 plus the combined rate.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.