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California car sales tax at a glance
| California | |
|---|---|
| Tax | sales tax |
| State rate | 7.25% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 9.03% |
| Counties and cities add tax | Yes |
| Trade-in lowers the tax | No, tax is on the full price |
| Leases | Tax on each monthly payment |
| Dealer doc fee cap | $85 |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out California sales tax on a car
Multiply the taxable price by the rate. California taxes the full price, even with a trade-in.
A $30,000 car with a $5,000 trade: $30,000 x 7.25% = $2,175 at the state rate, plus any county or city tax where you register the car.
7.25% statewide base rate (includes 1% local Bradley-Burns) plus district taxes where the buyer registers the vehicle. Doc fees are taxable.
Trade-ins
CA: no credit. CDTFA Pub 34: the trade-in allowance cannot be excluded from the amount on which tax is based (a $20,000 car with a $4,000 trade is taxed on $20,000).
Leasing a car in California
Tax on each monthly payment. California: unless the lessor paid tax on its purchase price, use tax is due on each lease payment and the lessor collects it; capitalized cost reductions and doc charges at signing are also taxable (CDTFA Pub 34). The lease calculator uses California's method when you pick the state.
Dealer doc fees
Vehicle Code 4456.5 as shown in DMV's Vehicle Industry Registration Procedures Manual: $85 max for dealers in DMV's private industry partner program, $70 otherwise. SB 791 (would have raised it) was vetoed in Oct 2025.