Minimum Sales Rate Tax for 2024
| 6.00% | Column content | Column content | Column content | Column content | |
| 0.25% | Column content | Column content | Column content | Column content | |
| 1.88% | Column content | Column content | Column content | Column content | |
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Rtd Greater Denver | Column content | Column content | Column content | Column content | |
| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 9.38% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $500,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 30th of the month following the reporting period. | Column content | Column content | Column content | Column content |
The statewide state sales tax rate in California is 7.25%, but since the County district Tax Sp is 1.88% and the city specific tax is 0.25%, the minimum sales tax rate for San Jose is 9.38%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In San Jose businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for San Jose
In San Jose, businesses are required to pay taxes based on the number of employees, rental units, square footage for commercial properties, or water meter connections. The tax structure is adjusted annually based on inflation, capped at 3% increases for incremental taxes. Businesses with 1-2 employees or rental units pay a base tax of $216.35 starting July 1, 2024. Incremental rates apply as employee or unit numbers increase, with caps on total taxes.
Additionally, non-residential properties are taxed at $0.0300 per square foot, and mobile home park lots and water meter connections have incremental taxes. For out-of-town businesses, tax rates vary depending on the duration of business activity in the city. All businesses must also pay a $4 state fee annually, and even those operating fewer than 5 days in San Jose must register without being taxed.
Services
Generally not taxable unless tied to the sale of taxable goods, recreational activities, or the repair/maintenance of taxable items.
Goods
Most items like appliances, cars, furniture, sporting equipment, and electronics are subject to sales tax.
Clothing
Taxable.
Electronics
Taxable.
SaaS
Not taxable, as it is classified as a service.
Digital Products
Generally not taxable if delivered electronically.
Software
Taxable when downloaded.
Freight/Shipping
Shipping charges for taxable goods are also taxable unless itemized separately on the invoice.
Speak to a US sales tax expert today
Schedule a call today
