Sales taxes will rise across L.A. County starting Tuesday. Here's how it will impact you - Los Angeles Times
Don’t be surprised if there’s a few extra cents rung up on your receipt this week. Starting Tuesday, Los Angeles County residents will see a quarter percent sales tax increase on their purchases due to a voter approved measure that supports county-run homeless services.
As of April 1, Los Angeles County residents in unincorporated areas and in cities that did not impose their own voter-approved tax will see their sales tax jump from 9.5% to 9.75%.
In California, Alameda County currently has the highest countywide sales tax at 10.25%, according to tax rates effective January 2025.
In November, voters in Los Angeles County approved Measure A, a replacement for the county’s 2017 quarter-cent sales tax to fund homeless services called Measure H.
Measure H was set to expire in 2027.
But now Measure A will replace it entirely, two years before the expiration date, and raise the tax rate to a half cent, which the county estimates will generate over $1 billion annually.
The new tax will remain in effect until it’s repealed by voters.
Measure A’s goals, according to the county’s Homeless Initiative, includes reducing the number of people falling into homelessness and living on the streets with mental or substance use disorders, increasing the number of affordable housing units in the county and increasing the number of people transitioning into permanent housing from encampments.
Here’s the breakdown of how the proceeds of Measure A are slated to be used, by percentage.
Approximately 60% of the proceeds will go towards county homeless services:
Approximately 40% will be allocated to housing production:
No. Some cities within the county have different, highers sales tax rates and as a result of Measure A those rates will be increased higher than 9.75%, according to the California Department of Tax and Fee Administration.
Cities whose current rate is 10.25% and will be increased to 10.50% as a result of Measure A:
Cities that approved their own new sales tax rate in combination with Measure A, listed from highest rate to lowest:
These cities were excluded from Measure H’s 0.25% sales tax but now subject to Measure A and will see their sale tax rate increase to 10.75%:
These cities are also seeing an increase from Measure A and their own local rate:
- Santa Fe Springs’ current rate is 10.50% and it will increase to 10.75%.
- Torrance’s current rate is 10% and it will increase to 10.25%.
A lot of your everyday purchases are subject to the tax including furniture, toys, clothing and electronics.
The California Tax Service Center states items that are exempt from the sales tax includes:
- Sales of certain food products for human consumption (such as your groceries).
- Sales to the U.S. Government.
- Sales of prescription medicine and certain medical devices.
- Sales of items paid for with EBT cards.