7.25%
California base state sales tax rate
What is the sales tax rate in California?
The California state sales tax rate is 7.25% at state level, frequently rising well above that once local rates are added. Sales tax is collected by you at the
point of sale and passed on to the state — it is never your money, it just passes
through your till on the way to the revenue department.
Sales tax = Price × 0.0725
Total = Price + Sales tax
Local sales tax in California
The state rate is only the starting point in California. Counties, cities and
special districts add their own increments, and the combined rate at a given address can be
substantially higher than the 7.25% state figure. California is one of the states where this
variation is largest.
The practical consequence for vendors: two markets in the same state, an hour apart, can
require different rates. Look up the combined rate for the venue address before each show
rather than reusing last event's number.
A worked example at the California rate
A $45.00 item at 7.25% carries $3.26 in state sales
tax, so the customer pays $48.26.
Over a show, $1,200.00 in sales at that rate means roughly
$87.00 collected on the state's behalf — money that is sitting in
your till but is not yours to spend.
Where local rates apply on top, both figures rise. Use the
calculator with the combined rate for your venue.
Selling at craft fairs and markets in California
- The venue's rate governs, not your home address and not where the
item was made.
- You will usually need a permit. Most states require a seller's permit
or temporary vendor licence before your first sale, including one-day events.
- Not everything is necessarily taxable. States treat categories such as
food, clothing and printed matter differently, and handmade goods get no automatic
exemption.
- Keep sales and tax separate in your records. Your card deposit blends
them, and the return asks for them apart.
Working backwards from a tax-inclusive total
If you price in round numbers at markets — $50 rather than $45.00 plus tax
— the tax is buried in every sale and has to be extracted before you file. Divide the
total by 1.0725, do not subtract 7.25% from it; subtracting overstates the tax. The
reverse sales tax calculator does this for you.
Frequently asked questions
What is the sales tax rate in California?
The California base state sales tax rate is 7.25%. Counties and cities may add their own on top, so the combined rate at the point of sale can be higher.
How do I calculate sales tax in California?
Multiply the price by 7.25% as a decimal, then add it to the price. A $45.00 item carries $3.26 in state sales tax, for a $48.26 total.
Do I need a permit to sell at a craft fair in California?
Usually yes. Most states require a seller's permit or a temporary vendor licence before your first sale, including single-day markets. Check with the California revenue department and the event organiser.
Which rate applies if I live in another state?
The rate where the sale happens. Selling at a California market means the California rate applies to those sales regardless of where you live or where the goods were made.
How do I work out the tax if my prices already include it?
Divide the total by 1.0725 to get the pre-tax price, then subtract to find the tax. Do not subtract 7.25% from the total — that overstates the tax, because the rate applied to the smaller pre-tax figure.