California | 6.00% |
Santa Clara | 0.25% |
City + District Rates Range | 2.875% – 3.625% |
Combined Sales Tax Rates Range | 9.125% – 9.875% |
Businesses are required to collect sales tax in Santa Clara if they have a sales tax nexus in California and sell to residents of Santa Clara.
Physical Nexus: This occurs when a business has a tangible presence in the state. Examples include having a store, warehouse, office, or employees in California if your business operates any of these within the state, you have a physical nexus and must collect sales tax from customers in Santa Clara. Economic Nexus: This is based on the volume of sales or number of transactions a business conducts in the state. For instance, if your business exceeds a certain threshold of sales or transactions in California which is often defined as a specific dollar amount or number of transactions, you establish economic nexus. This means even if you don’t have a physical presence in the state, you are still required to collect sales tax from customers in Santa Clara.