California’s Sales Tax will Decrease January 1, 2017

 

On January 1, 2017, the statewide sales and use tax rate will decrease one quarter of one percent (0.25%).  The decrease in the statewide rate is effective for all cities and counties in California.  Sales tax is comprised of the statewide sales and use tax rate of 7.25 percent plus any district tax.  For most of Orange County California the the new sales tax is 7.75 percent down from 8.00 percent.

Most of Orange County is a full 1.00 percent or more less than Los Angeles County.

Why is the sales and use tax rate decreasing?  Proposition 30, The Schools and Local Public Safety Protection Act of 2012 that was approved by California voters in November 2012 to temporarily increase the sales and use tax by 0.25 percent expires December 31, 2016.

A retailer who continues to charge and collect the higher statewide sales and use tax rate after January 1, 2017, must either refund the excess tax collected to their customer or pay the excess tax to the Board of Equalization (BOE).  You may not keep it.

List of Orange County Sales Tax Rates as of January 1, 2017.

Counties Rate Location
  Orange   7.750 %   Aliso Viejo*
  Orange   7.750 %   Anaheim*
  Orange   7.750 %   Atwood
  Orange   7.750 %   Balboa (Newport Beach*)
  Orange   7.750 %   Balboa Island (Newport Beach*)
  Orange   7.750 %   Ballroad
  Orange   7.750 %   Bolsa
  Orange   7.750 %   Brea*
  Orange   7.750 %   Brookhurst Center
  Orange   7.750 %   Buena Park*
  Orange   7.750 %   Capistrano Beach (Dana Point*)
  Orange   7.750 %   Corona Del Mar (Newport Beach*)
  Orange   7.750 %   Costa Mesa*
  Orange   7.750 %   Coto De Caza
  Orange   7.750 %   Cowan Heights
  Orange   7.750 %   Dana Point*
  Orange   7.750 %   East Irvine (Irvine*)
  Orange   7.750 %   El Modena
  Orange   7.750 %   El Toro (Lake Forest*)
  Orange   7.750 %   El Toro M.C.A.S.
  Orange   7.750 %   Foothill Ranch
  Orange   7.750 %   Fountain Valley*
  Orange   7.750 %   Fullerton*
  Orange   7.750 %   Garden Grove*
  Orange   7.750 %   Huntington
  Orange   7.750 %   Huntington Beach*
  Orange   7.750 %   Irvine*
  Orange   8.250 %   La Habra*
  Orange   7.750 %   La Palma*
  Orange   7.750 %   Ladera Ranch
  Orange   7.750 %   Laguna Beach*
  Orange   7.750 %   Laguna Hills*
  Orange   7.750 %   Laguna Niguel*
  Orange   7.750 %   Laguna Woods*
  Orange   7.750 %   Lake Forest*
  Orange   7.750 %   Leisure World
  Orange   7.750 %   Leisure World (Seal Beach*)
  Orange   7.750 %   Los Alamitos*
  Orange   7.750 %   Mariner
  Orange   7.750 %   Midway City
  Orange   7.750 %   Mission Viejo*
  Orange   7.750 %   Monarch Beach (Dana Point*)
  Orange   7.750 %   Newport Beach*
  Orange   7.750 %   Orange*
  Orange   7.750 %   Placentia*
  Orange   7.750 %   Rancho Santa Margarita*
  Orange   7.750 %   Rossmoor
  Orange   7.750 %   San Clemente*
  Orange   7.750 %   San Juan Capistrano*
  Orange   7.750 %   San Juan Plaza (San Juan Capistrano*)
  Orange   7.750 %   Santa Ana*
  Orange   7.750 %   Seal Beach*
  Orange   7.750 %   Silverado Canyon
  Orange   7.750 %   South Laguna (Laguna Beach*)
  Orange   8.750 %   Stanton*
  Orange   7.750 %   Sunset Beach
  Orange   7.750 %   Surfside (Seal Beach*)
  Orange   7.750 %   Trabuco Canyon
  Orange   7.750 %   Tustin*
  Orange   7.750 %   University Park (Irvine*)
  Orange   7.750 %   Villa Park*
  Orange   7.750 %   Westminster*
  Orange   7.750 %   Yorba Linda*
  Orange   7.750 %   Cypress*

(Note:*” next to city indicates incorporated city)
Obtained from California State Board of Equalization website January 4, 2017.

To go to California State Board of Equalization website and check tax rates for different cities or counties click here.