California Taxes

Capitol Alert
The go-to source for news on California policy and politics
By Dan Walters
dwalters@sacbee.com
03/31/2015 10:06 PM

There’s a wide range of sales tax rates in California, some rates are increasing this week and if pending legislation is successful, the range will get even wider.

Currently, sales tax rates range from as low as 7.5 percent in a few rural counties to as high as 10 percent in some cities.

The state collects 6.5 percent – 4.1875 percent for itself, then another 2.3125 percent that it automatically sends to schools and local governments for specific purposes. On top of that, another .25 percent is collected for county transportation services and another .75 percent for city and county operations.

All of those fractions add up to a base rate of 7.5 percent. In theory, local governments can, with voter approval, add up to 2 percent to the base rate, but some jurisdictions have obtained waivers to exceed that, thus raising the maximum in some areas to 10 percent.

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