San Jose, California Sales Tax Rate

Economic Context. San Jose is the largest city in Silicon Valley and the 10th largest in the US.

The combined sales tax rate in San Jose is 10.000%, composed of the California state rate of 7.250% plus a local portion of 2.750%.

Key industries driving San Jose's economy include Technology/SaaS, Semiconductor, Venture Capital, Software — 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 Jose: tax is $15.00 ($150.00 × 0.10000), total is $165.00.

Sales tax in San Jose is administered locally by Santa Clara County / City of San Jose. At 10%, San Jose's rate is above the California average — higher than San Francisco (8.625%) and San Diego (7.75%) but below Oakland (10.75%).

Special tax rules specific to San Jose:

• San Jose's 10% rate includes the state 7.25%
• Santa Clara County 1.625%
• and San Jose city add-ons. San Jose levies its own rate that funds specific local services.

San Jose-specific: San Jose's tech/SaaS-dominated economy means digital tax rules are particularly relevant.

Santa Clara County's relatively high local add-ons push San Jose to 10%, above the California average.

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: 10.000%.

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 Jose 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.