Overview of Tax on Coffee in California
Residents of California who consume coffee on a regular basis may be interested to know whether the state government taxes the beverage. Fortunately, the answer is no: California does not impose a specific tax on coffee.
Sales Tax on Coffee in California
Although there is no special tax applicable to coffee consumption within the state, all retail products purchased in California are subject to the state’s 7.25% sales tax. Depending on the region of residence, local taxes may also be applied to all purchases.
Exceptions and Special Programs
Some special programs, such as the Low Income Exclusion Plan, may provide exemptions from sales tax to eligible citizens. Furthermore, some counties provide for an exemption for concentrated food items, including coffee.
It is recommended that residents of California inquire at their local shops or retailers in order to ascertain the final price of any bought items.
In addition to the 7.25% sales tax and any local taxes, other fees may apply for some products. Examples of additional fees include:
- Live Entertainment Fees: If entertainment services are included with the purchase of a food or beverage item, a additional fee of 10% may be charged
- Packaging Charges: A 10¢ per package fee is applied on disposable or recyclable containers
From all this, it is clear that while coffee is not subject to any specific tax in California, it is still subject to the usual sales tax rate of 7.25%. Residents should ensure that they are aware of any additional fees that may apply, as well as any local taxes, in order to better understand the final price of any purchases.