California: Sales Tax Handbook

California Sales Tax Rate

State Sales Tax	Local Sales Tax Range	Average Local Tax	Average Combined Tax	Max Combined Tax
6%	1.25% - 4.75%	2.712%	8.685%	10.75%

2024 California Sales Tax Handbook

What is exempt from sales taxes in California?

Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how California taxes five types of commonly-exempted goods:

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For more details on what types of goods are specifically exempt from the California sales tax see California sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in California? Taxation of vehicle purchases in particular are discussed in the page about California's sales tax on cars.

Are services subject to sales tax in California?

"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In California, services are generally not taxable.

About the California Sales Tax

California's 7.5% statewide base sales tax is the highest minimum sales tax rate in the United States. The 1% uniform local sales tax is collected by the Board of Equalization, with 0.75% distributed to cities and counties and the remaining 0.25% going to county transportation funds. It should be noted that the total sales tax rate can vary significantly depending on which jurisdiction you are in, as many localities charge their own separately-administered local sales taxes on top of the 1% state-administered local tax.

In California, the sales and use taxes are collected by the Board of Equalization, while franchise and income taxes are collected by a separate board, the Franchise Tax Board. One of the reasons California's sales tax is so high compared to other states is Proposition 13, a 1978 law that capped property taxes across the state and forced local governments to turn to sales taxes as an alternative source of revenue.

Overall, the state of California has a relatively complex sales tax system compared to other states. We provide a thorough overview here on SalesTaxHandbook, and the Board of Equalization has a hotline available to answer sales tax related questions at 1-800-400-7115.

Is the California Sales Tax Destination-Based or Origin-Based?

California is a origin-based sales tax state, which means sales tax rates are determined by the location of the vendor, not by the location of the buyer. The origin-based method of determining sales tax is less complicated for vendors than destination-based sales tax, because all in-state buyers are charged the same sales tax rate regardless of their location.

Is California a Streamlined Sales Tax State?

California is not a member of the Streamlined Sales and Use Tax Agreement. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.

Contact the California Board of Equalization

The California Sales Tax is administered by the California Board of Equalization. You can learn more by visiting the sales tax information website at www.boe.ca.gov.

Phone numbers for the Sales Tax division of the Board of Equalization are as follows:

• Local Phone: (916) 445-6362
• Toll-Free Phone: (800) 400-7115

Learn More: Our Book Recommendations

If you would like to learn more about how to manage your California sales taxes, we recommend the following books:

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