Credit card processing and merchant services in Sacramento, CA
In the Sacramento area, the city limit changes your sales tax by a full point. Get the rate right for each location, then take a hard look at what cards cost you.
In the Sacramento area, the city limit decides your sales tax. CDTFA lists the city of Sacramento at 8.75% as of October 1, 2026, and unincorporated Sacramento County at 7.75%. The other cities in the county split both ways: Elk Grove and Rancho Cordova match the city's 8.75%, Folsom and Citrus Heights are at 7.75%, and Galt is at 9.25%. West Sacramento, over the line in Yolo County, is also at 9.25%.
A one-point gap adds up. On a $2,000 taxable sale, 8.75% is $175 and 7.75% is $155. Use the lower rate inside the city and you owe the $20 difference yourself; use the higher rate outside it and you've overcharged the customer. Look up each address with CDTFA before you set up a terminal or an invoice.
The city is home to an estimated 536,449 people (July 2025), and its retailers sold about $7.8 billion in 2022, with roughly another $2 billion spent at hotels, restaurants and bars, according to the Economic Census.
Card fees follow the statewide rules. California's surcharge statute is still law on paper, but the Attorney General's office says it will generally extend the 2018 Italian Colors decision to merchants in the plaintiffs' position. The card networks cap the fee at your cost and keep debit off limits, and a card-only business must build the fee into its advertised prices under SB 478.
If you take payments at job sites or events, our mobile payments and home services pages cover the setup, and a free statement review shows what you're paying now.
Rules that matter in Sacramento
City and county rates differ
CDTFA lists the city of Sacramento at 8.75% and unincorporated Sacramento County at 7.75% (rates effective October 1, 2026). Other cities in the county range from 7.75% in Folsom and Citrus Heights to 9.25% in Galt, so use the rate for the address where each sale happens.
Source: CDTFA, California city and county sales and use tax rates (effective October 1, 2026)
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Common questions
What is the sales tax rate in Sacramento?
Inside the city of Sacramento, 8.75%, according to CDTFA's table effective October 1, 2026. Unincorporated parts of Sacramento County are at 7.75%. If your business address is near the city limit, check it with CDTFA's lookup by address before you set up your terminals.
Do Sacramento businesses have to take cash?
We couldn't find a statewide California law that makes businesses, in Sacramento or anywhere else, accept cash. Check the city's municipal code before you go cashless, and remember that a card-only business has to include card fees in its advertised prices under SB 478.
Can Sacramento businesses add a credit card surcharge?
Usually, if it's done openly. California's 1748.1 ban hasn't been repealed, but the Attorney General says it will generally apply the Italian Colors decision to similarly situated merchants. Disclose the fee before payment, keep it within your cost and the Visa and Mastercard caps, and leave debit and prepaid cards out.
How much can a one-point rate difference cost me?
On $30,000 of taxable sales in a month, one percentage point is $300. If you charge 7.75% on sales made inside the city, where the rate is 8.75%, that $300 is tax you owe but didn't collect. Check each location's rate with CDTFA rather than guessing.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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