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California Statewide Sales and Use Tax Rate Decreases by 1% July 1, 2011


By: California State Board of Equalization (BOE)

June 29, 2011 - The statewide sales and use tax rate will decrease from 8.25 percent to 7.25 percent on July 1, 2011, Senator George Runner, Second District Member of the California State Board of Equalization (BOE), announced today.

"A lower sales tax rate will put more dollars in Californians' pockets," said Senator Runner. "That's a good thing for folks who are struggling to pay their bills or find work, and it's a good thing for local business owners who could benefit from some increased customer spending. But even with this reduction, Californians will still pay the highest statewide sales tax rate in the nation."

The 1 percent decrease applies, generally, to all taxable transactions in California. In areas where voters have approved additional sales taxes, the total tax rate applied to purchases will be the statewide base tax rate of 7.25 percent, plus any applicable local sales tax. Retailers should check the BOE website, www.boe.ca.gov, for updates.

Part of a 2008-09 budget agreement, Assembly Bill x3 3 temporarily increased the General Fund portion of the sales and use tax rate by 1 percent in April of 2009, and will sunset on June 30, 2011.

The sales and use tax rate in California currently ranges from 8.25 percent to 10.75 percent, depending on whether additional regional voter-approved sales taxes apply. Beginning July 1, 2011, the range will be 7.25 percent to 9.75 percent.


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