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California Sales & Use Tax Guide 2025: Nexus, Exemptions, Rates, and Tax-Exempt Transactions

  • California Sales & Use Tax Guide 2025 Nexus, Exemptions & Rates
  • Sales Tax applies to retail sales of tangible personal property
  • Use Tax applies to goods purchased without sales tax
  • California’s statewide sales and use tax rate is 7.25%
  • Tax-exempt transactions include sales of food products, sales to the US Government, and prescription medicine
  • Partial exemptions for diesel fuels, farm equipment, racehorses, and timber harvesting
  • Nexus rules in California include economic nexus threshold of USD 500,000

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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