California

Sales Tax Rules

7.25%

State Rate

10.75%

Max Combined

Exempt

SaaS

$500k

Nexus Threshold

Full Tax Details

State Sales Tax Rate7.25%

Max Combined Rate10.75%

Economic Nexus (Sales)$500,000

Economic Nexus (Transactions)N/A

SaaS TaxableNo

Digital Goods TaxableNo

Groceries ExemptYes

Clothing ExemptNo

Filing FrequencyMonthly, Quarterly, or Annual

Online FilingAvailable

SaaS Tax Details

SaaS is generally non-taxable as it is not considered tangible personal property.

Grocery Details

Most groceries are exempt; hot prepared foods are taxable.

Official Source

California Department of Revenue

Last verified: 2026-03-25 · Always confirm current rates with your tax advisor before filing.