Shoppers across the entire economic spectrum are impacted sales tax equally. Sometimes these types of flat rate taxes impose an especially large burden on shoppers who are on limited incomes. California, with certain exceptions, doesn’t have a sale tax on a majority of grocery food items. (However, restaurant meals along with some heated fast food products you do have to pay sales tax on.)
Currently, the State of California charges a 6% sales tax rate. A sales tax is assessed by Orange County for certain items, which includes a standard quarter of a percent rate as well as a 1.5% special tax rate. The combined sales tax rate that the County and State impose stands at 7.75% presently.
Some municipalities in California also have the power to be able to assess sales taxes. As a consequence, incorporated location in Orange County (such as Fountain Valley), have an extra municipal tax rate on certain rates increases the sales and use tax over 7.75%. The bottom line is that in the state of California, consumers must check their sales tax rate for every specific shopping venue very carefully to determine the amount they should anticipate having to pay in sales tax. Many communities in Orange County currently charge less in sales tax compared to other L.A. cities nearby.