The sales tax in Los Angeles is a critical piece of the puzzle when you’re budgeting for purchases, running a business, or just trying to understand why that $10 item costs $10.90 at checkout. Whether you’re a resident, a business owner, or just passing through California’s largest city, knowing the exact tax rate—and what it covers—can save you money and headaches.
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Current Sales Tax Rate
As of 2025, the combined sales tax rate in Los Angeles is 9.5%. This might seem straightforward, but it’s actually a combination of several different tax layers stacked on top of each other. The state of California sets a baseline, the county adds its portion, and the city of Los Angeles adds another layer. Understanding this structure helps you see where your tax dollars are actually going.
The 9.5% rate applies to most retail purchases within Los Angeles city limits. However—and this is important—some cities in Los Angeles County have slightly different rates. If you’re in unincorporated areas or nearby cities like Long Beach or Santa Monica, you might pay a different percentage. This is why it’s worth double-checking your specific location.
Rate Breakdown by Component
Here’s where it gets interesting. That 9.5% isn’t just one tax; it’s a combination:
- State Sales Tax: 7.25% (set by California)
- Los Angeles County Tax: 1.25%
- Los Angeles City Tax: 1% (approved by voters in 2017)
This breakdown matters if you’re comparing Los Angeles to other California cities. For example, if you check the sales tax in San Diego, you’ll see a different total because San Diego County and the city of San Diego have their own local tax rates. The state portion is always the same across California, but local additions vary significantly.
What’s Actually Taxed
Not everything you buy is subject to sales tax, and this is where many people get confused. Understanding what’s taxed and what’s not can actually help you make smarter purchasing decisions.
Generally taxed items:
- Clothing and accessories
- Electronics and appliances
- Furniture and home goods
- Toys and games
- Restaurant meals and prepared foods
- Gasoline and fuel
- Haircuts and personal services
Generally NOT taxed items:
- Unprepared groceries (raw fruits, vegetables, bread, milk, eggs)
- Prescription medications
- Medical equipment (wheelchairs, hearing aids)
- Most services (legal advice, accounting, repairs—though this varies)
The distinction between “prepared” and “unprepared” food trips up a lot of people. If you buy a rotisserie chicken from the grocery store deli, that’s taxed. If you buy raw chicken breasts, it’s not. Buy a sandwich from the deli counter? Taxed. Buy bread and lunch meat to make it at home? Not taxed.
Common Tax Exemptions
California offers several exemptions that can reduce your tax burden, especially if you’re a business owner or qualify for specific categories.
Resale exemptions: If you’re buying items to resell (you’re a retailer), you can use a resale certificate to avoid paying sales tax on your wholesale purchases. You’ll collect tax from your customers instead. This is huge for business owners because it prevents tax stacking.
Nonprofit exemptions: Qualified nonprofits can purchase items tax-free if they’re for charitable purposes. You’ll need documentation and approval from the California Department of Tax and Fee Administration.
Manufacturing equipment: Certain equipment used directly in manufacturing is exempt. This is more relevant if you’re running an industrial operation.
Energy-saving appliances: California occasionally offers tax breaks for energy-efficient products, though these are temporary and change yearly.
City-to-City Variations
This is critical: Los Angeles County has multiple cities, and each can set its own local tax rate. You might drive 15 minutes and find yourself in a different tax jurisdiction.
For comparison, check the sales tax in Santa Ana, which is also in Orange County but has its own local additions. Similarly, sales tax in Fresno differs because Fresno is in a different county with different local rates.
Within Los Angeles County specifically:
- Los Angeles city: 9.5%
- Long Beach: 10.25%
- Santa Monica: 10.25%
- Pasadena: 10.25%
- Torrance: 9.5%
- Unincorporated areas: 9.25%
If you’re a business owner with multiple locations or a consumer who shops across city lines, these differences add up. A $1,000 purchase in Long Beach costs $102.50 in tax versus $95 in Los Angeles—that’s a $7.50 difference on a single transaction.
Business Implications
If you’re running a business in Los Angeles, sales tax is more than just a line item—it’s a compliance requirement that can get expensive if mishandled.
Collection responsibility: You’re required to collect sales tax from customers and remit it to California’s Department of Tax and Fee Administration. You can’t just pocket the difference between what you charge and what you owe. The state views this as money held in trust.
Nexus rules: Even if you don’t have a physical location in Los Angeles, you might owe sales tax if you have “nexus” (a significant presence) in California. This includes employees, warehouses, or even drop-shipping arrangements. The rules changed significantly after the Supreme Court’s Wayfair decision.
Quarterly vs. annual filing: Depending on your sales volume, you might file sales tax returns monthly, quarterly, or annually. Higher-volume businesses typically file more frequently.
Sales tax audits: The California Department of Tax and Fee Administration does conduct audits, and they’re not gentle. If they find underpayment, you’ll owe back taxes, penalties, and interest. It’s worth getting this right from the start.
For broader tax planning, you might also want to review California state estimated tax payments if you’re self-employed or have business income.
Smart Planning Tips
Track your spending: If you’re a business owner, meticulous record-keeping is non-negotiable. Track what you buy, what you sell, and what you owe. Use accounting software to automate this—it’s cheaper than dealing with an audit.
Understand your exemptions: If you qualify for any exemptions, document them properly. The burden is on you to prove you’re entitled to them, so keep receipts and certificates organized.
Plan large purchases strategically: If you’re buying something expensive and you’re near a city line, it might be worth checking the tax rate in adjacent cities. On a $10,000 purchase, a 0.75% difference equals $75 in savings.
Use tax-advantaged accounts: For personal finances, consider using pre-tax dollars through FSA or HSA accounts for eligible medical expenses. While this doesn’t eliminate sales tax, it reduces your taxable income.
Stay updated: Tax rates and exemptions change. Subscribe to updates from the California Department of Tax and Fee Administration or work with a tax professional who monitors these changes. What was true in 2024 might shift in 2025.
Frequently Asked Questions
Is groceries taxed in Los Angeles?
Most unprepared groceries are not taxed in Los Angeles. This includes raw vegetables, fruits, bread, milk, eggs, and meat. However, prepared foods from deli counters, bakeries, and restaurants are taxed. The key distinction is whether the food is ready to eat.
Do I pay sales tax on online purchases in LA?
Yes, you typically owe sales tax on online purchases shipped to Los Angeles, even if the retailer is out of state. Most major online retailers now collect and remit this tax automatically. If they don’t, you’re technically supposed to report it on your state income tax return as “use tax,” though enforcement is limited for individual consumers.
Can I get a refund on sales tax?
Generally, no. Sales tax is final once paid. However, if a retailer overcharges you or makes an error, you can request a refund directly from them. You cannot claim a refund from the state just because you paid tax on a purchase.
What’s the difference between sales tax and use tax?
Sales tax is collected by the retailer when you buy something. Use tax is a self-assessed tax you owe when you purchase something without sales tax being collected (typically out-of-state purchases). Both go to the same place—California’s tax coffers—but the mechanism is different.
Do services have sales tax in LA?
Most services are not taxed in California, but there are exceptions. Haircuts, manicures, and personal grooming services are taxed. Repair services are generally not taxed. Professional services like accounting or legal advice are not taxed. When in doubt, ask the service provider.
How often do sales tax rates change?
State rates rarely change (California’s 7.25% has been stable for years), but local rates can change when cities or counties pass new measures. These typically require voter approval, so they’re not sudden, but they do happen. Always verify the current rate for your specific location.
Final Thoughts
The sales tax in Los Angeles at 9.5% is straightforward on the surface but complex underneath. You’re paying 7.25% to the state, 1.25% to the county, and 1% to the city. Knowing what’s taxed, what’s exempt, and how rates vary across Los Angeles County puts you in control of your finances—whether you’re a consumer making smart purchasing decisions or a business owner managing compliance obligations.
The best strategy? Stay informed, track your spending, and when in doubt, ask. A few minutes of research or a conversation with a tax professional can save you hundreds of dollars and prevent costly compliance mistakes. And if you’re comparing Los Angeles to other California cities, remember that each location has its own tax structure—what you pay here might be different from what you’d pay in San Diego, Santa Ana, or Fresno.
