Sales Tax Rates Increase in Many Parts of the State

Voter-approved sale tax rate increases took effect July 1 in many areas of the state, the California Department of Tax and Fee Administration notified retailers in a special notice.

The tax rate is now in double digits in many areas, climbing to 10.75 percent in several Bay Area cities.

In Santa Rosa, voters extended a sales tax that was set to expire, but the rate remains at 9.25 percent.

Shoppers may have a challenging time trying to estimate sales tax without a calculator, as many cities have made use of the state law allowing the tax rate to be imposed in increments of 0.125 percent. In San Jose, the tax rate is now 9.375 percent.

Some of these cities also increased their minimum wage rates July 1, so consumers are likely to experience higher prices to cover the cost of the pay increase, and then a higher sales tax rate applied to the increased cost.

Many local jurisdictions mandate a minimum wage higher than the state or federal minimum. On July 1, the hourly minimum wage increased in Berkeley (from $16.07 to $16.32), Emeryville ($16.84 to $17.13), Fremont ($15 to $15.25 for larger employers, $13.50 to $15 for those with fewer than 26 employees), Los Angeles (the $15 rate that previously applied to larger employers now applies to all employers), Malibu (now $15 for all employers), Milpitas ($15.40 to $15.65), Pasadena ($15 for all employers), San Francisco ($16.07 to $16.32), and Santa Monica ($15 for all employers). The state minimum wage increased January 1, and is $14 per hour for employers with 26 or more employees, and $13 per hour for smaller businesses.

The table below includes the sales tax rate data provided by the CDTFA.