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Some items are exempt from sales and use tax, including: Sales of certain food products for human consumption (many groceries) Sales to the U.S. Government. Sales of prescription medicine and certain medical devices.

Summary. A sales tax exemption certificate allows a buyer to make tax-free purchases. The purchaser must provide the seller with a completed exemption certificate. Items covered by the exemption certificate are then exempt from sales and use tax. The seller keeps the exemption certificate.

The statewide tax rate is 7.25%. In most areas of California, local jurisdictions have added district taxes that increase the tax owed by a seller. Those district tax rates range from 0.10% to 1.00%. Some areas may have more than one district tax in effect.

Some items are exempt from sales and use tax, including: Sales of certain food products for human consumption (many groceries) Sales to the U.S. Government. Sales of prescription medicine and certain medical devices.

Interstate and Foreign Commerce. Sales tax generally does not apply to your transaction when you sell a product and ship it directly to the purchaser at an out-of-state location, for use outside California.

Even though the state-wide base rate for California online sales tax is 7.25%, like with the rest of California's complicated tax laws as they relate to online transactions, it's not that simple. There are a few key points that every online business owner should know when it comes to California internet sales tax.

Many smart shoppers can find bargains online, but don't realize they can incur a tax bill in the process. California law requires tax on in-state purchases, and also requires tax on items purchased out-of-state for use in California.