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    Sales Tax by State – California

    March 26, 2020

March 26, 2020

Sales Tax by State – California




Sales Tax by State

2020 California Sales Tax Fact Sheet

Last updated on: April 1, 2020

California Sales and Use Tax Rate Lookup by Address:

Use USgeocoder Sales and Use Tax FREE Online Lookup Tool to search state-wide, county, local and special district Sales and Use tax rates and tax reporting details for any physical address and PO Box in California.

California Sales tax components:
Statewide tax
Local district tax: County tax, Municipality (incorporated city) tax, Special district tax (cross-county, cross-municipality, un-incorporated areas, and other special purpose district taxes)

California Statewide Sales Tax Rate:
7.25%

Highest Total Local District Sales Tax Rate in California:
3.25%

Highest Total Sales Tax Rate with Local District Sales Tax in California:
10.50%

Incorporated city with the Highest Sales Tax Rate in California:
Santa Fe Springs City in Los Angels County (10.50%)

Number of Counties in California:
58

Number of Municipalities (Incorporated cities) in California:
482

Special District Sales and Use Taxes in California:

  1. Bay Area Rapid Transit District: Alameda, Contra Costa and San Francisco counties
  2. Sonoma-Marin Area Rail Transportation Authority: Sonoma and Marin counties
  3. Unincorporated Area Transaction and Use Tax: Santa Cruz and Yuba counties

Can I Use Zip Codes to Determine Correct Sales Tax Rates in California?
Not recommended

Zip codes cross city boundaries. Different cities might have different local district rates. In addition, city taxes only apply to areas within the incorporated city. If an address is in an un-incorporated area, city taxes do not apply. You should look for an address-based solution such as USgeocoder that can identify if the address is within an incorporated city to determine its sales tax rates in California.

Learn more about how postal zip codes, mailing cities and incorporated cities work. 

Can I Use County and City to Determine Correct Sales Tax Rates in California?
Not recommended

City taxes only apply to areas within the respective incorporated city. If an address is in an un-incorporated area, city taxes do not apply. You should look for an address-based solution such as USgeocoder that can identify if the address is within an incorporated city to determine its sales tax rates in California.

Are Sales Tax Rates and Use Tax Rates the Same in California?
Yes

Does California Have Tax Codes for Tax Return Reporting Purpose?
Yes

Sales and Use Tax Rate Update Schedule in California:
Update Frequency: Quarterly
Last update: April 1, 2020

Does California Have an Origin-Based or Destination-Based Sales Tax Collection?
Mixed (state, county and city taxes are based on the origin, but district taxes are based on the destination.)

Origin-based: sales tax is charged based on where the seller is located.
Destination-based: sales tax is charged based on where the buy is located

Is California a Full Member of Streamlined State?
No

A streamlined Full Member State is a state that has been found to be in compliance with the Streamlined Sales and Use Tax Agreement (SSUTA) and its laws, rules, regulations, and policies and bring them into compliance are in effect. See details on Streamlined Sales Tax Governing Board’s website.

Does California Have Sales Tax Holidays?
No

Wayfair Sales Tax Implementation in California:
Sales Thresholds: $500,000
Transaction Threshold: none

Wayfair sales tax implementation applies to out-of-state sales, remote sales, Internet sales and online sales. See Details on https://www.cdtfa.ca.gov/industry/wayfair.htm.

Does California Charge Sales Tax on Digital Goods?
Generally no

Does California Charge Sales Tax on Services?
Generally no unless they are an integral part of a taxable transfer of property.

Does California Charge Sales Tax on Shipping?
May apply. See details on https://www.cdtfa.ca.gov/formspubs/pub100/#applying.

California State Sales and Use Tax Authority:
California Department of Tax and Fee Administration (CDTFA)
Website: https://www.cdtfa.ca.gov/

Other Resources:

  1. California District Sales and Use Tax Rates Published by CDTFA: https://www.cdtfa.ca.gov/formspubs/cdtfa105.pdf
  2. Listing of California City and Unincorporated County Codes Published by CDTFA: https://www.cdtfa.ca.gov/formspubs/cdtfa531fl1.pdf
  3. California Tax Matrix for Remote Sellers Published by CDTFA: https://www.cdtfa.ca.gov/formspubs/cdtfa758.pdf
  4. California City and County Sales and Use Tax Rates Lookup by City Provided by CDTFA: https://www.cdtfa.ca.gov/taxes-and-fees/rates.aspx
  5. California Department of Tax and Fee Administration (CDTFA) News Updates: https://www.cdtfa.ca.gov/news/#Notices-Newsletters
  6. How to Correctly Calculate the California Sales Tax Rate Using Geo-Based Technology
  7. How to collect the new Unincorporated Area sales and use tax in California?

Looking for an Online Solution that provides real-time sales tax rates for your application? 

Try USgeocoder API. It provides all the information you get from USgeocoder Live Demo.

USgeocoder live demo is free to use. You can use it to lookup sales and use tax rate information one address at a time. However if you have a large number of addresses and would like to save time, USgeocoder can do it for you through batch processing service.


SALES TAX BY STATE

STATES WITH STATE AND LOCAL SALES TAX:
CaliforniaNew YorkWashington State

STATES WITH NO SALES TAX:
Delaware, Montana, New Hampshire, Oregon

STATES WITH ONLY STATE-WIDE SALES TAX AND NO LOCAL SALES TAX:
Connecticut (6.35%), District of Columbia (6.00%), Indiana (7.00%), Kentucky (6.00%), Maine (5.5%), Maryland (6.00%), Massachusetts (6.25%), Michigan (6.00%), New Jersey (6.625%), Rhode Island (7.00%)


DISCLAIMERS:

SALES AND USE TAX INFORMATION ON THIS BLOG REFERS TO THE GENERAL SALES OF TANGIBLE PERSONAL PROPERTY. IN MANY STATES, THERE ARE DIFFERENT RATES FOR RENTAL, LEASING, AND TANGIBLE ITEMS SUCH AS VEHICLE, EQUIPMENT, FOOD, OR CLOTHING. SOME STATES HAVE DIFFERENT SALES TAX RATES THAN USE TAX RATES. EACH STATE HAS ITS OWN RULES ON EXEMPTIONS. PLEASE REFER TO THE SALES AND USE TAX LAW OF INDIVIDUAL STATES FOR DETAILS.

USGEOCODER LLC IS NOT ASSOCIATED WITH ANY GOVERNMENT AGENCIES IN ANY MANNER. ALL INFORMATION PROVIDED ON THIS WEBSITE IS PREPARED FOR GENERAL INFORMATIONAL PURPOSES ONLY. YOU SHOULD CONSULT YOUR OWN TAX, LEGAL AND ACCOUNTING ADVISORS TO ADDRESS YOUR SPECIFIC QUESTIONS AND BEFORE ENGAGING IN ANY TRANSACTION RELATED TO SALES AND USE TAX.


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