How California Sales Tax Works
California's state government imposes a 7.25% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 8.87% statewide.
California has the highest state-level sales tax rate in the country at 7.25%. Combined rates exceed 10% in parts of Los Angeles County and the Bay Area.
Groceries in California
California exempts most unprepared grocery food from sales tax. Hot prepared food, soda, and most candy are taxed.
How California Compares to Neighboring States
Sales tax on a $1,000.00 purchase in California versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. California |
|---|---|---|---|---|
| California (here) | 7.25% | 8.87% | $88.70 | — |
| Oregon | None | None | $0.00 | -$88.70 |
| Nevada | 6.85% | 8.24% | $82.40 | -$6.30 |
| Arizona | 5.60% | 8.40% | $84.00 | -$4.70 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the California sales tax rate for 2026?
California's state sales tax rate is 7.25% for 2026. When combined with the average local sales tax of 1.62%, most California residents pay a typical combined rate of 8.87%.
How much sales tax will I pay on a $100 purchase in California?
On a $100 purchase, expect approximately $7.25 in state sales tax, or about $8.87 including average local sales tax (combined 8.87%). Total cost: roughly $108.87.
Are groceries taxed in California?
California exempts most unprepared grocery food from sales tax. Hot prepared food, soda, and most candy are taxed.
Is sales tax calculated before or after discounts in California?
California follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this California sales tax estimate calculated?
The calculator applies California's 7.25% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with California's Department of Revenue tool.