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California Sales Tax Rate Decreases January 2017

Voter-approved Proposition 30, which imposed the 0.25% temporary statewide sales and use tax rate expires on December 31, 2016. As a result, effective January 1, 2017, the California statewide sales and use tax rate will decrease by 0.25% from the current rate of 7.50% to the new rate of 7.25%.

However, the total tax rate in many cities and counties will remain higher than the statewide rate because of local voter-approved district taxes in those areas.

For additional information on how the rate decrease affects partial exemptions and other items, visit the California Board of Equalization webpage.

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