Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In California, sales tax is administered by the California Department of Tax and Fee Administration (CDTFA). The state imposes a sales tax on the sale of goods and services, which is generally collected by the retailer at the point of sale and then remitted to the state. The base statewide sales tax rate is currently 7.25%, which includes a 6.25% state tax and a 1% uniform local tax. However, local jurisdictions such as cities and counties can impose additional sales taxes, which can make the total sales tax rate higher in certain areas. These additional taxes are used to fund local projects and services. It's important for businesses to be aware of the specific sales tax rates that apply to their transactions, as they can vary depending on the location of the business and the location of the customer in the case of shipped goods.