Orange County has a Total Sales Tax. The combined tax rate is 7.75% for most of its citizens; however, some localities in the county must pay higher rates to the state because they intersect with other taxes specific to those cities—the locality with the highest tax rate in Santa Ana, whose value is 9.25%.
Two other cities belong to the group with the highest taxes: Fountain Valley, Garden Grove, Placentia, Seal Beach, Stanton, and Westminster, with 8.75%. La Habra and La Palma are behind with 8.25% but remain with a high tax rate. In this context, having context about taxes in Orange County is ideal for meeting your tax responsibilities.
What is the sales and use tax rate in Orange County?
Orange County is located in California and comprises 47 cities and towns and 144 zip codes. The average cumulative rate in the state is 8.02%.
The minimum combined sales tax rate is 7.75% for the year 2022 in Orange County. This is the figure consisting of state and municipal taxes, of which 6% of the Sales Tax belongs to the state of California, while Orange County is left with a local sales tax of 1.75%.
Professionals in the field require automating Sales Tax compliance will help your business comply with the unforeseen changes these laws have. In 2018, a U.S. Supreme Court decision in South Dakota changed these laws at the state level and the requirements for collecting this tax.
This tax is used to fund public transportation, local activities, etc. Here are some considerations you should take into account about the levy:
- Business premises collect Sales Tax in Orange County
- Groceries are exempt from payment throughout the state of California.
- Orange County contains only 1.75% of the maximum local tax allowed by California law.
- Orange County is one of the lowest taxing localities of all other cities in California
What are the Orange Sales and Use Tax rates by the city?
It is a record of the rates and percentages of this tax by city:
Valley Source
- Sales and Use Tax rate of 8.75%.
- 6.00% State Sales Tax Rate
- Local Tax Rate of 1.25%
- 0.50% County Tax Rate
- Municipal Tax Rate of 1.00%
Garden Grove
- 8.75% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% Local Tax Rate
- 0.50% County Tax Rate
- Municipal Tax Rate of 1.00%
La Habra
- 8.25% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal Tax Rate of 0.50%
La Palma
- 8.25% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal tax rate of 0.50%
Placentia
- 8.75% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal tax rate of 1.00%
Santa Ana
- 9.25% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal Tax Rate of 1.00%
Seal Beach
- 8.75% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal Tax Rate of 1.00%
Stanton
- 8.75% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal tax rate of 1.00%
Westminster
- 8.75% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal Tax Rate of 1.00%
All other cities in Orange County
- 7.75% Sales Tax Rate
- 6.00% State Tax Rate
- 1.25% local tax rate
- 0.50% County Tax Rate
- Municipal tax rate of 0.00%
What is taxed, and what is exempt from this tax?
The Sales Tax applies to all goods and services bought and sold. This includes clothing and even food in restaurants. In addition, 30 items have additional charges, including cigarettes, alcohol, tires, cannabis, batteries, gasoline, and so on.
Just as items that comply with this tax and others that run with additional fees, a group of products and services are exempt from these payments. Among them, you can find:
- Groceries or non-prepared foods
- Plants and seeds that are used for food
- Medicines with prescription
- Livestock
- Energy services
All merchants operating in California must automatically calculate the sales tax due on the purchase made. Products purchased for resale or commercial use are exempt from sales tax.
Online or mail order purchases are also subject to sales tax. If you do not pay it at invoicing, you must pay it later at the California Franchise Tax Board.