Many of California's cities, counties, towns, and communities have special taxing jurisdictions (districts), that impose a transaction sales and use tax, referred to as district taxes, in addition to the standard statewide tax rate of 7.25%.
To find the current sales and use tax rate for a specific location, you may use the Find a Sales and Use Tax Rate webpage to look up a tax rate by address.
On the California City & County Sales & Use Tax Rates webpage, you will also find the following information:
No, it is not always possible to determine the correct tax rate based solely on a mailing address or zip code.
To assist retailers and consumers in identifying addresses located within special taxing jurisdictions, some cities have developed an online database of addresses. In cooperation with these cities, our webpage, California City and County Sales and Use Tax Rates provides a link to their address databases. If you have questions about the addresses, you should contact the cities directly.
You are considered "engaged in business" in a district if you:
However, beginning April 1, 2019, a new district use tax collection requirement pursuant to the Wayfair decision applies to both in-state and out-of-state retailers. For more information, please see our Use Tax Collection Requirements Based on Sales into California due to the Wayfair Decision guide.
Transactions (sales) tax is imposed on the sale of merchandise (tangible personal property) in a district, and you are generally responsible for reporting transactions tax if you are a retailer "engaged in business" in a district (See FAQ #8).
For more information about the application of tax to sales by businesses with multiple locations, please see FAQ#5.
District use taxes are imposed on the storage, use or other consumption of merchandise (tangible personal property) in a district. You may be responsible for reporting district use tax if:
If you are a retailer whose only business location is in a district, you must generally report and pay the district's transactions tax on all your sales unless:
If your business is located outside a district, your over-the-countersales are not subject to transactions tax. However, for property that you ship or deliver into a district, you may be required to pay district use tax if you are "engaged in business" in that district.
If you are a retailer with more than one location, the place of sale is generally considered the location at which you carry on principal negotiations even if you must forward the order to another location for acceptance, approval of credit, shipment, or billing. Your employees' activities will be attributed to the location from which they work. Consequently, sales made or negotiated by employees at places located in districts are generally subject to transactions tax.
As with a single location business, you are allowed an exemption from district tax for property that is shipped to an out-of-state location or for property that is also exempt from the sales and use tax.
You are not required to pay transactions tax on sales made at business locations outside districts. You may, however, be required to collect district use tax if you ship the property into a district in which you are "engaged in business."
You are not required to pay for transactions tax on sales made:
The transactions (sales) tax does not apply to property sold within a district but is shipped or delivered, as agreed to in the contract of sale, to a point outside the district.
You are generally required to pay the district use tax in your customer's district, if you are "engaged in business" in the district in which you deliver the merchandise (See FAQ #5).
You are generally not required to pay for your district's tax if the customer does not take possession of the property in your district.
However, if your customer is located in another district, you are generally required to pay that district's use tax if:
Yes. If the property is used in a district with a higher tax rate than the rate paid at the time of purchase, the additional tax is due. If you hold a seller's permit, you are required to report and pay the additional business related use tax liabilities on your sales and use tax returns. If you do not have a seller's permit with the CDTFA, you can report your purchase(s) subject to use tax on our Taxpayer Online Services Portal page and select "One-Time Use Tax and/or Lumber Return." You may also report and pay use tax to the Franchise Tax Board (FTB) on your California income tax return.
For more information on use tax, please visit the California Use Tax Information webpage.
You do not owe district tax on a sale made to a district resident when you do both of the following:
Exceptions: If you deliver the product into the district with your own vehicle, or participated in that district in making the sale and are "engaged in business" in the district (see FAQ #5), you must collect the district's use tax.