California sales tax: What is it, who pays it and rates

California sales tax is a consumption tax imposed by both state and local governments on the sale of tangible goods and some services. The tax is collected by sellers at the point of purchase and is ultimately paid by the end consumer.

When consumers make purchases of taxable goods or services, the seller is responsible for collecting the applicable sales tax and remitting it to the state. This means that every time a consumer buys a product or service subject to sales tax, they are contributing to the state’s revenue.

The revenue generated from sales tax helps fund various public services, including education, transportation, and public safety.

What is the rate of California sales tax?

The California Department of Tax and Fee Administration notes the base sales tax rate is 7.25%.

For companies to comply with the sales tax the state has guidance online.