Understanding Riverside Sales Tax
Every purchase in Riverside County, CA, comes with a hidden cost—sales tax. Whether you’re shopping, dining, or running a business, sales tax impacts your bottom line. But how much should you really be paying? Are there exemptions? What happens if your business collects sales tax incorrectly? Simplicity Financial has your back.
In Riverside County, sales tax isn’t just a single percentage set by the state. Instead, it’s a combination of state, county, and local district taxes—which means that what you pay in one part of Riverside might not be the same as what you pay elsewhere.
Let’s break down how sales tax works in Riverside, California, and how individuals and businesses can stay compliant while keeping more money in their pockets.
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What Is the Riverside County Sales Tax Rate?
As of 2025, the base sales tax rate in Riverside County is 7.75%, but the actual rate can vary depending on your exact location within the county. Here’s how it breaks down:
- California State Sales Tax: 6.00%
- Riverside County Local Tax: 1.25%
- City and District Taxes: Up to 1.50% (varies by location)
- Total Sales Tax in Riverside County, CA: 7.75% – 9.25%
For example:
- City of Riverside Sales Tax: 8.75%
- Temecula Sales Tax: 8.75%
- Palm Springs Sales Tax: 9.25%
That means if you buy a $100 taxable item in Riverside, you’ll pay anywhere from $7.75 to $9.25 in sales tax, depending on where you make the purchase.
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How Does Sales Tax Work for Businesses in Riverside County?
If you own a business in Riverside County, you are responsible for:
- Collecting the correct sales tax rate based on your location and type of business.
- Reporting and remitting sales tax to the California Department of Tax and Fee Administration (CDTFA).
- Filing sales tax returns on time to avoid penalties.
💡 Pro Tip: If you sell products online but have a physical location in Riverside, you may need to collect sales tax based on your customer’s location. Remote and e-commerce sales tax can be tricky, so it’s best to consult a professional.
Are There Any Sales Tax Exemptions in Riverside County?
Not everything is subject to sales tax in Riverside, California. Some items are exempt or taxed at a lower rate, including:
- Grocery items (unprepared food) – No sales tax
- Prescription medications – No sales tax
- Medical devices – Often tax-exempt
- Some manufacturing equipment – May qualify for partial exemption
- Certain agricultural products – Tax-exempt under California law
If you sell or buy any of these items, make sure you understand how the exemptions apply. Some businesses may need to obtain a resale certificate to avoid being charged sales tax on wholesale purchases.
People also read: What’s the Riverside Property Tax Rate? Our Riverside Tax Tips
What Happens If You Don’t Pay Sales Tax in Riverside County?
Failing to collect or remit sales tax properly can lead to:
🚨 Late Fees & Interest: The CDTFA charges penalties for late payments.
🚨 Audits: The CDTFA regularly audits businesses to verify sales tax compliance.
🚨 Legal Action: If sales tax isn’t paid, the state can seize assets, freeze bank accounts, or revoke business licenses.
💡 How to Avoid Issues: Use bookkeeping software, hire a remote tax professional, and file on time.
How to Pay Riverside Sales Tax
If you collect sales tax as a business owner in Riverside, you must:
1️⃣ Register with CDTFA – Businesses must register with the California Department of Tax and Fee Administration (CDTFA) for a seller’s permit.
2️⃣ File a Sales Tax Return – Sales tax must be reported quarterly or annually, depending on your revenue.
3️⃣ Remit Payment – You can pay online via the CDTFA website or by mail.
💡 Pro Tip: Many businesses overpay or underpay sales tax. Working with a financial expert ensures accuracy and compliance. If you need CFO services California residents can trust, look no further than Simplicity Financial.
How Does Riverside Sales Tax Affect Franchise Owners?
Franchise businesses in Riverside County must navigate complex sales tax rules that vary by industry, location, and revenue structure. Unlike independent businesses, franchises may need to collect and remit sales tax on royalty fees, product sales, and licensing agreements.
Understanding California Franchise Tax Payment rules is crucial for compliance. Learn more about How California Franchise Tax Payment Works and how to stay on top of your obligations as a franchise owner.
Sales Tax & Property Tax: What Homeowners & Investors Need to Know
Sales tax isn’t the only tax affecting Riverside County residents—property tax plays a significant role in homeownership and real estate investment. If you’re purchasing property for commercial use or short-term rentals, you may be responsible for both sales tax and property tax obligations.
For instance, if you’re renting out a furnished property on platforms like Airbnb, you might be required to collect transient occupancy tax (TOT) in addition to paying property taxes. Our article on Riverside Property Tax provides insights into how property taxes work, important deadlines, and exemptions that might apply to homeowners.
How Simplicity Financial Can Help With Sales Tax in Riverside
At Simplicity Financial, we specialize in remote accounting and tax services that make it easy to stay compliant with Riverside County sales tax regulations. Our services include:
✅ Fractional CFO Services – We send a financial expert to assist your team on an as-needed basis, ensuring you only pay for services you actually need.
✅ Sales Tax Compliance Audits – We review your tax filings to identify errors and ensure compliance.
✅ Tax Return Preparation – Avoid last-minute stress with our remote tax preparation services.
✅ Business Tax Consulting – Need help setting up your sales tax system? We provide expert guidance.
✅ Bookkeeping and Financial Planning – Stay organized and ready for tax season with our comprehensive bookkeeping solutions.
📞 Need help managing your Riverside sales tax obligations? Contact Simplicity Financial today!
FAQs About Riverside Sales Tax
What is the current Riverside County sales tax rate?
As of 2025, the Riverside County sales tax rate is 7.75% – 9.25%, depending on the location.
What is the City of Riverside sales tax rate?
The City of Riverside has a sales tax rate of 8.75%, which includes state and local district taxes.
Who has to pay sales tax in Riverside County?
Consumers pay sales tax when purchasing taxable goods and services. Businesses must collect, report, and remit sales tax to the CDTFA.
What purchases are exempt from sales tax in Riverside County?
Items such as grocery food, prescription medications, and certain medical devices are exempt from sales tax. You should consult with a professional from Simplicity Financial if you’re unsure of how to file your taxes correctly.
What happens if I don’t pay my Riverside sales tax on time?
Late payments result in penalties, interest charges, and possible audits from the CDTFA.
How do I file sales tax in Riverside County?
Businesses must register, file a return, and submit payments to the California Department of Tax and Fee Administration.
Disclaimer
This article is for informational purposes only and does not constitute legal or financial advice. Sales tax rates and laws change frequently. For personalized guidance, consult with a qualified tax professional or visit the California Department of Tax and Fee Administration (CDTFA) website.
