The sales tax rate in Colma, California is 9.875%. That rate applies to most purchases of tangible goods within town limits, layering California’s 7.25% statewide base with 2.625% in San Mateo County district taxes. Groceries, prescription medications, and a few other categories stay exempt.
How the 9.875% Breaks Down
Every California sales tax rate starts from the same 7.25% statewide base, which funds the state general fund and returns a portion to cities and counties for local services.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information San Mateo County voters have layered 2.625% in district taxes on top of that base to reach Colma’s 9.875%.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
Three voter-approved measures make up much of the district portion:
- Measure A, a half-cent transportation tax first approved in 1988 and administered by the San Mateo County Transportation Authority.3San Mateo County Transportation Authority. Measure A and W Programs
- Measure W, a half-cent tax passed in 2018 and split between the Transportation Authority and SamTrans, funding highway projects, local streets, Caltrain grade separations, and bike and pedestrian improvements. It runs through June 30, 2038.4San Mateo County Transportation Authority. Measure W
- Measure K, a half-cent countywide tax funding health care access, affordable housing, early learning, and public safety.5County of San Mateo. Local Funds for Local Needs – Measure K
Those three measures account for 1.5% of the district layer. The remaining 1.125% comes from additional district levies, including allocations to SamTrans and other regional programs. Shoppers see only the single 9.875% figure on a receipt, but it represents several separate funding streams.
What Gets Taxed
Sales tax applies to nearly all purchases of tangible personal property, meaning physical items you can pick up and carry out of a store. Furniture, electronics, clothing, office supplies, and similar retail goods all carry the full 9.875% rate. California imposes the tax on retailers based on gross receipts from sales of tangible personal property.6California Department of Tax and Fee Administration. California Revenue and Taxation Code 6051 – Imposition and Rate of Sales Tax
Service charges can also trigger the tax when they’re bundled into the price of a physical product. If a furniture store folds delivery and setup into the sale price rather than itemizing them, the full amount is generally taxable. Standalone labor is not taxable; labor that results in transferring a physical product to the buyer is.
Vehicle Purchases Work Differently
Colma’s car dealerships draw shoppers from across the Peninsula, but the tax on a vehicle purchase does not automatically match Colma’s rate. California calculates vehicle tax based on where you register the vehicle, not where the dealership sits.7California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles Register your car at a Colma address and you pay 9.875%. Register it in a city with a lower combined rate and you pay that lower rate. The dealership collects the tax at the point of sale, so confirm which rate appears on your paperwork.
What’s Exempt
Several categories of essential goods stay exempt, and those exemptions apply regardless of the district taxes layered on top.
Groceries
Food products purchased for home consumption are exempt.8California Legislative Information. California Code RTC 6359 – Food Products for Human Consumption That covers produce, meat, dairy, eggs, bread, canned goods, and frozen foods bought at a grocery store.9California Department of Tax and Fee Administration. Tax Guide for Grocery Stores The exemption disappears once food is prepared hot, served as a meal, or sold for immediate on-site consumption. A rotisserie chicken from the hot case is taxable; a raw chicken from the meat counter is not.10California Department of Tax and Fee Administration. Sales and Use Tax Regulations – Article 8, Regulation 1602
Prescriptions and Medical Devices
Prescription medications dispensed by a pharmacist or furnished by a licensed physician are exempt.11California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6369 The exemption also covers prosthetic devices, orthotic braces, and items permanently implanted in the body such as pacemakers and bone pins. Insulin and related diabetic supplies, including glucose test strips and lancets, qualify when furnished by a pharmacist in accordance with a physician’s instructions.12California Department of Tax and Fee Administration. Regulation 1591.1 – Specific Medical Devices, Appliances, and Related Supplies Over-the-counter medications you pull off a shelf without a prescription stay taxable.
Menstrual Hygiene Products
California permanently exempts menstrual hygiene products. The exemption took effect January 1, 2020, and the legislature removed the sunset date in 2021, making it ongoing.13California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6363.10
Online and Out-of-State Purchases
Buy something online or from an out-of-state seller with no California sales tax collected, and you owe use tax at the same rate you’d pay locally. For Colma residents, that’s 9.875%. Use tax exists to prevent shoppers from avoiding the tax by purchasing across state lines or from sellers who don’t collect it.14California Department of Tax and Fee Administration. California Use Tax For Personal Use
Most individuals report use tax on their annual California income tax return using Form 540 or 540 2EZ. The CDTFA provides a Use Tax Lookup Table for nonbusiness items costing less than $1,000 each, so you don’t need to save every receipt. Use tax is owed by April 15 of the year after the purchase. Vehicles, vessels, and aircraft cannot be reported on your income tax return and must instead go directly to the CDTFA.14California Department of Tax and Fee Administration. California Use Tax For Personal Use
If you already paid sales tax to another state, you can claim a credit. When that other state’s rate was lower than 9.875%, you owe California the difference.
Out-of-state retailers with more than $500,000 in annual gross sales delivered into California must register with the CDTFA and collect the tax themselves. Sellers with a physical presence in California, such as a warehouse or in-state employees, must collect regardless of sales volume.
How Retailers Collect and Remit
Businesses operating in Colma need a valid seller’s permit from the CDTFA before making any sales. Operating without one is a misdemeanor under California law.15California Legislative Information. California Code RTC 6071 Retailers collect the tax from customers at the point of sale and hold those funds in trust until remitting them to the state.16California Department of Tax and Fee Administration. Sales and Use Tax in California Once the CDTFA processes returns, it distributes the local and district portions back to Colma and the relevant county agencies.
Penalties for Late Filing or Payment
The CDTFA imposes a 10% penalty for filing a sales tax return late and a 10% penalty for paying late. When both happen at once, the combined penalty is capped at 10% of the tax owed for that period, so a single late return will not draw a 20% hit.17California Department of Tax and Fee Administration. Trouble Paying Taxes
Interest runs on top of penalties. For all of 2026, the CDTFA charges 10% annual interest on unpaid balances, calculated at a monthly factor of 0.00833 for each month or partial month overdue.18California Department of Tax and Fee Administration. Interest Rates The rate is pegged to the IRS rate plus 3% and is re-evaluated every six months. A business that falls behind on remittances can also have its seller’s permit suspended or revoked.