Beverly Hills sales tax is one of the highest in California, and if you’re shopping, doing business, or relocating to this iconic Los Angeles enclave, you need to understand exactly what you’re paying. As a CPA who’s helped countless clients navigate California’s complex tax system, I can tell you that most people are surprised when they discover their actual tax burden here—and that’s before you factor in local assessments and special district taxes.
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Current Beverly Hills Sales Tax Rates
As of 2024, the combined Beverly Hills sales tax rate stands at 9.5%. This breaks down into the California state base rate of 7.25%, plus an additional 2.25% in local taxes. Now, I know what you’re thinking—that’s steep. And you’re right. When you’re buying a $100,000 piece of jewelry or a luxury car, that 9.5% adds up fast.
The city of Beverly Hills has maintained this rate structure to fund essential services, including its world-class police department, fire services, and public infrastructure. Unlike some municipalities that have seen rate increases year-over-year, Beverly Hills has kept its local portion relatively stable, though it’s worth checking the official City of Beverly Hills website for any updates, as special assessments can occasionally apply to specific transactions or districts.
Tax Rate Breakdown Explained
Let me break this down so it actually makes sense. That 9.5% isn’t just one number—it’s a layered system:
- State Base Rate: 7.25% (applies statewide)
- County Tax (Los Angeles): 0% (LA County itself doesn’t add extra)
- City of Beverly Hills Local Tax: 1.5%
- Special District Taxes: 0.75% (varies by location within Beverly Hills)
The special district portion is what trips up most people. Depending on which specific area of Beverly Hills you’re in, you might be in a Mello-Roos district or a Community Facilities District (CFD) that adds an extra layer. It’s not just one flat rate across the entire city—location matters.
If you’re comparing this to nearby areas like San Diego’s sales tax rate (7.75%) or Anaheim’s sales tax (9.5%), you’ll see Beverly Hills sits right at the top of the Southern California range.
What’s Actually Subject to Tax
Here’s where it gets interesting—and where people often make costly mistakes. Not everything you buy in Beverly Hills is taxed at the same rate, and some things aren’t taxed at all.
Taxable items include:
- Clothing and accessories (with some exceptions for items under $110)
- Electronics and appliances
- Jewelry and luxury goods
- Restaurant meals and prepared food
- Vehicles and vehicle parts
- Most services (though this varies)
Generally NOT taxed:
- Groceries and unprepared food
- Prescription medications
- Medical equipment and supplies
- Most services (though labor for repairs often is)
The clothing exemption is particularly relevant in Beverly Hills. California exempts clothing items under $110 from sales tax, but anything above that threshold is fair game. So that designer handbag at $5,000? Full tax applies. A basic t-shirt at $40? No tax.
Common Tax Exemptions
As a tax professional, I always tell my clients: understanding exemptions can save you real money. Beverly Hills recognizes several important ones.
Resale Certificates: If you’re a business owner purchasing inventory for resale, you can use a resale certificate to avoid paying sales tax at the point of purchase. You’ll collect tax from your customers instead. This is huge for retail operations in Beverly Hills.
Tax-Exempt Organizations: Nonprofits, religious organizations, and educational institutions can purchase items tax-free with proper documentation. If you run a qualifying organization, make sure you’re registered with the California Department of Tax and Fee Administration (CDTFA).
Agricultural Exemptions: While Beverly Hills isn’t exactly farmland, agricultural equipment and seeds used in farming are exempt. Not super relevant here, but worth knowing.
Manufacturing Equipment: Certain equipment used in manufacturing is exempt. Again, less common in Beverly Hills, but if you’re in production, this matters.
How Beverly Hills Compares
Let’s put Beverly Hills in context. I’ve worked with clients across California, and the tax rates vary wildly depending on where you are.
Beverly Hills at 9.5% is higher than:
- Los Angeles proper (9.5%—actually tied)
- Santa Monica (9.5%—also tied)
- Culver City (9.5%—you see the pattern)
But it’s comparable to many affluent LA County areas. If you’re relocating from out of state, this might shock you. For comparison, Connecticut’s sales tax is 6.35%, and Suffolk County sales tax in New York is 8.875%. California’s tax structure is genuinely among the highest in the nation, and Beverly Hills sits right at that upper edge.
The key difference? Beverly Hills’ rate is driven almost entirely by local choice. The city council has voted to maintain these rates because the revenue funds services that make Beverly Hills what it is—excellent schools, top-tier police protection, and pristine public spaces.
Impact on Local Businesses
If you own a business in Beverly Hills, sales tax compliance isn’t optional—it’s essential. And it’s more complex than most business owners realize.
Every business collecting sales tax must:
- Register with the CDTFA before opening
- Collect the correct tax rate (which varies by location within the city)
- File returns monthly, quarterly, or annually depending on your volume
- Keep detailed records of all transactions
- Stay current on rate changes and special assessments
I’ve seen Beverly Hills businesses get into serious trouble by either not collecting enough tax or misclassifying what’s taxable. The penalties are steep—10% of unpaid tax, plus interest calculated daily. For a business doing $1 million in annual sales, that’s potentially $95,000 in tax liability. Miss it, and you’re looking at additional penalties.
The good news? If you’re diligent about compliance, you’re protected. The CDTFA is actually quite reasonable if you make good-faith efforts to comply and correct mistakes promptly.
Smart Shopping Strategies
Now, let me be clear: you can’t legally avoid Beverly Hills sales tax by shopping elsewhere and bringing items back. Tax follows the transaction, not the item. But there are legitimate strategies worth knowing.
Timing and Planning: If you’re making a large purchase, understand what you’re buying. That $50,000 watch? 9.5% tax applies. But if you’re buying components to manufacture something, different rules might apply.
Out-of-State Purchases: Here’s where it gets interesting. If you purchase something online from an out-of-state retailer with no physical presence in California, you technically owe use tax—which is essentially sales tax by another name. California is aggressive about collecting this, especially for high-value items.
Business Purchases: If you’re buying for a business, ensure you have proper documentation. A resale certificate, when properly used, saves you 9.5% on inventory purchases. For a retail business, that’s enormous.
Tax-Free Holidays: California doesn’t have traditional tax-free holidays like some states do. However, keep an eye on special programs. For example, Maryland’s tax-free week shows how some states structure these, and occasionally California considers similar programs.
Frequently Asked Questions
Is Beverly Hills sales tax higher than Los Angeles?
No, they’re identical at 9.5%. Both cities chose to implement the same local tax rate. The difference comes down to specific location within each city—some areas have additional special district taxes that others don’t.
Do I pay sales tax on services in Beverly Hills?
Sometimes. Services are generally not taxed, but labor for repairs and installation often is. For example, if you buy a TV and pay for installation, the TV is taxed but the installation labor typically isn’t. However, certain services like personal services (haircuts, massages) are taxed in California. Always ask your service provider to clarify.
Can I get a refund if I overpaid sales tax?
Possibly, but you need documentation. If a retailer charged you incorrectly, contact them first. If they won’t refund it, you can file a claim with the CDTFA, but you’ll need proof of the overcharge. This is why keeping receipts matters.
What about online purchases from Beverly Hills retailers?
If you’re buying online from a Beverly Hills-based retailer and having it shipped to your address in Beverly Hills, you pay the full 9.5%. If you’re shipping it out of state, it depends on that state’s tax laws. If you’re buying from a Beverly Hills retailer but shipping to another California city, you pay that city’s tax rate.
Do luxury goods have a different tax rate?
No. A $100 item and a $100,000 item are both taxed at 9.5% in Beverly Hills. There’s no luxury tax surcharge. However, vehicles have a different calculation—you pay tax on the purchase price, but there are some nuances around trade-ins and financing that affect the final number.
Are there any upcoming changes to Beverly Hills sales tax?
As of my last update in 2024, there are no announced changes to the rate. However, special assessments can be added through local ballot measures. Always check the City of Beverly Hills official communications for any proposed changes.
Final Takeaway
Beverly Hills sales tax at 9.5% is steep, but it reflects the city’s commitment to maintaining the services and infrastructure that make it one of the most desirable places to live and do business in California. Whether you’re a resident, a business owner, or a visitor, understanding the breakdown—state rate, local rate, and special districts—helps you make informed financial decisions.
The key takeaway? Don’t just accept the tax as inevitable. Understand what’s taxable, know your exemptions, and if you’re running a business, stay compliant. The difference between casual compliance and careful attention to detail can mean tens of thousands of dollars over time.
If you’re dealing with significant Beverly Hills transactions—whether that’s opening a business, making major purchases, or managing tax obligations—consider consulting with a tax professional who understands California’s system. It’s an investment that typically pays for itself many times over.
