San Diego, California Sales Tax Rate

Economic Context. San Diego is California's second-largest city and a major military hub — home to Naval Base San Diego, Marine Corps Base Camp Pendleton, and dozens of defense contractors generating $50B+ annually.

The combined sales tax rate in San Diego is 7.750%, composed of the California state rate of 7.250% plus a local portion of 0.500%.

Key industries driving San Diego's economy include Defense/Military, Tourism, Biotech/Life Sciences, Telecommunications — each may have distinct sales tax treatment under California law.

The formula to calculate sales tax for any purchase:

For a $150.00 purchase in San Diego: tax is $11.63 ($150.00 × 0.07750), total is $161.63.

Sales tax in San Diego is administered locally by San Diego County / City of San Diego. At 7.75%, San Diego has one of the lowest combined rates among major California cities — tied with Anaheim and Irvine.

Special tax rules specific to San Diego:

• San Diego's 7.75% rate is among the lowest for major US cities — only the 7.25% state rate plus a 0.5% county add-on. San Diego County has some of the lowest local add-ons in California.

San Diego-specific: The US Navy's Pacific Fleet presence ($50B+ annual economic impact) means defense contractors must navigate complex federal tax exemption rules.

San Diego County's exceptionally low 0.5% add-on keeps the combined rate at 7.75% — far below LA (9.75%) or Oakland (10.75%).

While sales tax is collected by registered vendors at the point of sale, use tax is a self-assessed tax that applies when taxable goods are purchased from a vendor who did not collect sales tax. The rates for both are identical: 7.750%.

If you purchase equipment, software, or supplies from out-of-state merchants and no tax was charged, you are legally obligated to report and pay use tax to California Department of Tax and Fee Administration (CDTFA). Use tax audits are common — failure to accrue on untaxed invoices is a frequent audit finding.

Businesses with physical presence or economic nexus in California must register with California Department of Tax and Fee Administration (CDTFA) before collecting tax.

For full registration, filing, exemption certificate, and audit guidance, see the California sales tax guide.

Businesses in San Diego must maintain resale certificates and transaction records to comply with California tax audits. If you sell wholesale, obtain a valid resale certificate from the buyer.

For detailed guidance, see the California sales tax page.