San Francisco Sales Tax Rate and What It Covers

San Francisco's current sales tax rate

San Francisco's sales tax rate is 8.625%. This rate applies to most retail purchases within the city limits. The rate is made up of the California state sales tax (7.25%) plus a local tax that San Francisco adds on top (1.375%).

The 8.625% rate has been in place since 2018, when San Francisco voters approved Proposition C, a local measure that increased the city's portion of sales tax. Before that increase, the rate was 8.5%. Tax rates can change if San Francisco voters approve new measures, so it's worth checking the current rate before making large purchases if you haven't checked in a while.

Key Takeaways

• San Francisco's sales tax is 8.625%, combining California's state rate of 7.25% with the city's local rate of 1.375%.
• Sales tax applies to most goods but not to groceries, prescription medications, or most services like haircuts or repairs.
• The tax is added at checkout and is included in the final price you pay — it is not added separately on top of the displayed price.
• If you buy something in San Francisco but have it shipped to an address outside California, you typically do not pay California sales tax on that purchase.

What items are taxed and what are not

Not everything you buy in San Francisco is subject to sales tax. Groceries — fresh produce, meat, dairy, bread, and other food you prepare at home — are not taxed. Prepared food from restaurants, bakeries, or deli counters is taxed. Prescription medications are also exempt from sales tax, but over-the-counter medicines and vitamins are taxed.

Most services are not subject to sales tax in California. A haircut, dental work, car repair, or plumbing service is not taxed. However, if you buy a physical product along with a service — like a haircut plus a bottle of shampoo — the shampoo is taxed but the haircut is not. Clothing is taxed in San Francisco, including shoes and accessories.

Digital products and services vary. E-books, digital music, and streaming subscriptions are generally not taxed, but software you read or purchase on a disc is taxed. If you are unsure whether a specific item is taxed, ask the cashier or check your receipt after purchase — the receipt will show what was taxed and what was not.

How sales tax is calculated at checkout

When you buy something in San Francisco, the cashier or online checkout system automatically calculates 8.625% of the taxable amount and adds it to your total. The price tag you see in the store does not include sales tax — the tax is added at the register. This means if an item is marked $10, you will pay $10.86 at checkout (plus tax on any other items you are buying).

Online purchases work the same way. If you buy from a retailer's website and have the item shipped to a San Francisco address, sales tax is added to your order. If you have it shipped to an address outside California, you typically will not pay California sales tax, though you may owe sales tax in the state where it is being delivered.

Sales tax on online and out-of-state purchases

If you order something online from a retailer outside California and have it shipped to San Francisco, whether you pay sales tax depends on the retailer's policies and where they are based. Large national retailers like Amazon, Target, and Walmart collect sales tax on orders shipped to California addresses, including San Francisco. Smaller retailers may not, though California law requires them to collect it.

If you buy something in person in another state and bring it back to San Francisco, you do not pay sales tax on it — you already paid tax where you bought it. However, if you order something from out of state and it is shipped to you in San Francisco, the retailer should charge you San Francisco sales tax if they have a legal obligation to do so.

Who collects and uses the sales tax

The retailer collects sales tax from you at the point of sale and then sends it to the California Department of Tax and Fee Administration. San Francisco's portion of that tax (the 1.375% local rate) goes to the city's general fund and is used for city services and programs. The state portion (7.25%) goes to the state.

Retailers are responsible for keeping track of sales tax collected and sending it in on a regular schedule — usually monthly or quarterly, depending on how much tax they collect. If a retailer fails to send in the tax they collected, the state can pursue them for the unpaid amount.

Sales tax on specific purchases

Some purchases have special rules. Cars purchased in San Francisco are subject to sales tax, calculated on the purchase price. Gasoline is taxed at the pump. Alcohol — beer, wine, and spirits — is taxed at the regular 8.625% rate. Cigarettes and tobacco are taxed, plus they have an additional state excise tax on top of sales tax.

If you buy something used from a private seller (not a business), you do not pay sales tax on that transaction. Sales tax only applies when you buy from a retailer or business. If you sell something used to a friend or through a private sale, neither you nor the buyer owes sales tax.

Frequently Asked Questions

Do I pay sales tax if I buy something in San Francisco but live in another state?

If you are visiting San Francisco and buy something in a store, you pay San Francisco sales tax at checkout. If you have it shipped to your home address in another state, the retailer should not charge you California sales tax — they should charge you the sales tax rate for the state where it is being delivered, if that state has sales tax.

Is sales tax included in the price shown on the shelf?

No. The shelf price does not include sales tax. The tax is added at checkout. So if a shirt is marked $25, you will pay $25 plus 8.625% sales tax, which comes to $27.16.

Do I have to pay sales tax on groceries?

Fresh groceries like produce, meat, dairy, and bread are not taxed. However, prepared foods from a deli counter, bakery, or restaurant are taxed. Hot foods and foods meant to be eaten right away are considered prepared food and are taxed.

What if the receipt shows a different tax amount than I calculated?

The tax amount on your receipt is correct. Sometimes the calculation looks different because the retailer rounds, or because certain items in your purchase were not taxable. If you think there is an error, you can ask the cashier to explain what was taxed and what was not.

Do I owe sales tax on items I buy online from other states?

If you buy from a large retailer with a presence in California, they will charge you San Francisco sales tax when you have it shipped to a San Francisco address. Smaller retailers may not charge it, but California law requires them to. If tax was not charged, you may owe it to the state, though enforcement for individual purchases is rare.