San Francisco, California Sales Tax Rate

Economic Context. San Francisco is the heart of the Bay Area economy.

The combined sales tax rate in San Francisco is 8.625%, composed of the California state rate of 7.250% plus a local portion of 1.375%.

Key industries driving San Francisco's economy include Technology/SaaS, Venture Capital, Financial Services, Tourism — 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 Francisco: tax is $12.94 ($150.00 × 0.08625), total is $162.94.

Sales tax in San Francisco is administered locally by City and County of San Francisco. At 8.625%, San Francisco's rate is lower than nearby Oakland (10.75%) and San Jose (10%) but higher than San Diego (7.75%).

Special tax rules specific to San Francisco:

• San Francisco is a consolidated city-county. The 8.625% rate includes the state 7.25% plus SF's 1.375% local rate. San Francisco also has a separate gross receipts tax on businesses.

San Francisco-specific: SF's tech/SaaS dominance makes digital tax rules especially relevant.

San Francisco is a consolidated city-county, meaning there's no separate county tax layer — unlike Oakland (Alameda County) or San Jose (Santa Clara County).

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: 8.625%.

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 Francisco 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.