2024 Guide to Sales Tax in Sacramento, California

California Sales Tax Rate: 7.25%
Sacramento County Sales Tax Rate: 0%
Special Sales Tax Rate: 0%
Sacramento Sales Tax Rate: 1.5%

If you're operating a business in Sacramento, California, it's crucial to understand the local sales tax regulations to ensure compliance and smooth operation. This guide provides a comprehensive overview of the sales tax in Sacramento, California.

We will discuss the various sales tax rates at the state, county, and city levels, how to calculate sales tax in Sacramento, and the requirements for businesses to collect sales tax. Additionally, we provide sales tax rates for the top 10 most populated ZIP codes in Sacramento and tips to ensure compliance with sales tax regulations.

What is the Sales Tax in Sacramento?

The total sales tax rate in Sacramento consists of the California state tax rate, Sacramento County tax rate, and additional city tax rates where applicable.

Breakdown of Sales Tax in Sacramento

State Sales Tax: 7.250%
County Sales Tax: 0.000%
City Sales Tax: 1.500%
Special Sales Tax: 0.000%

What is Sacramento County Sales Tax?

In Sacramento, part of Sacramento County, there is no additional county sales tax beyond the state rate.

Tax Rates in Sacramento, California

Here are the sales tax rates for the top 10 most populated ZIP codes in Sacramento:

ZIP Code	State Sales Tax	County Sales Tax	City Sales Tax	Special Sales Tax
95821	7.250%	0.000%	1.500%	0.000%
95822	7.250%	0.000%	1.500%	0.000%
95823	7.250%	0.000%	1.500%	0.000%
95825	7.250%	0.000%	1.500%	0.000%
95826	7.250%	0.000%	1.500%	0.000%
95828	7.250%	0.000%	1.500%	0.000%
95831	7.250%	0.000%	1.500%	0.000%
95833	7.250%	0.000%	1.500%	0.000%
95835	7.250%	0.000%	1.500%	0.000%
95838	7.250%	0.000%	1.500%	0.000%

Other Tax Rates for Sacramento

Here are some other applicable tax rates for businesses:

Type of Sales Tax	Rate
Non-Nexus Sellers – State Use Tax	7.250%
Non-Nexus Sellers – County Use Tax	0.000%
Non-Nexus Sellers – City Use Tax	1.500%
Non-Nexus Sellers – Special Use Tax	0.000%
Out-of-State Sellers – State Use Tax	7.250%
Out-of-State Sellers – County Use Tax	0.000%
Out-of-State Sellers – City Use Tax	1.500%
Out-of-State Sellers – Special Use Tax	0.000%
Marketplace Facilitators – State Sales Tax	7.250%
Marketplace Facilitators – County Sales Tax	0.000%
Marketplace Facilitators – City Sales Tax	1.500%
Marketplace Facilitators – Special Sales Tax	0.000%

What Items are Taxable in Sacramento?

In California, certain items are taxable while others are exempt. Common taxable items include:

Item	Description	TIC Number
Apparel	Clothing and footwear	10020
Electronics	Computers and accessories	20020
Furniture	Home furnishings	30020

What Items are Exempt from Taxes in Sacramento?

Some items are exempt from sales tax in California, typically for essential goods or to encourage certain purchases:

Item	Description	TIC Number
Prescription Drugs	Medications	40020
Groceries	Unprepared food items	50020
Medical Equipment	Durable medical equipment	60020

Who Needs to Collect Sales Tax in Sacramento?

In Sacramento, Businesses need to collect sales tax if they have either physical or economic nexus in California.

Physical Nexus

You have a physical presence in California if you:

Own or lease property in California
Have employees in California
Maintain inventory in California

Economic Nexus

You have economic nexus if your sales into California exceed $500,000 in the current or previous calendar year.

How to Get a Sales Tax Permit?

If you meet the nexus requirements, you must register for a sales tax permit in California. Here’s how:

Visit the California Department of Tax and Fee Administration’s (CDTFA) website.
Complete the application for a sales tax permit.
Submit the application and await approval.

How Do You Charge the Right Amount for Sales Tax?

Ensuring you charge the correct sales tax in Sacramento involves:

Manually checking and updating rates: Regularly check the CDTFA website for updates.
Using sales tax software: Implement software like TaxCloud to automate rate updates and compliance.

How Do You File and Remit Sales Tax?

Sales tax returns are filed with the California Department of Tax and Fee Administration. Here’s how:

Collect sales tax from customers.
File your sales tax return online.
Remit the collected taxes to the state.

Conclusion

Understanding and complying with sales tax regulations in Sacramento is essential for any business operating in California. Use this guide to navigate the complexities of sales tax and ensure your business remains compliant.

Sales Tax Guides by State

Our sales tax guides provide an overview of sales tax rates, nexus thresholds, taxable and nontaxable items, along with other valuable tax knowledge for every U.S. state.