The Sales Tax Rate in Los Angeles

The sales tax rate in Los Angeles is 9.5%. This rate applies to most purchases of goods and some services within the city limits. The rate is made up of the California state sales tax (7.25%) plus local taxes added by Los Angeles County and the City of Los Angeles.

The exact rate you pay can vary slightly depending on which part of Los Angeles you are in, because some neighborhoods and districts add their own local sales taxes on top of the base rate. However, 9.5% is the standard rate for most of the city. If you cross into an unincorporated area of Los Angeles County or into a neighboring city, the rate may be different.

Key Takeaways

  • Los Angeles city sales tax is 9.5%, made up of the state rate plus local additions.
  • Some areas within Los Angeles County charge slightly different rates depending on local district taxes.
  • Food for home consumption is generally not taxed, but prepared food and restaurant meals are.
  • Clothing and shoes under $110 are exempt from sales tax in California.
  • The rate you pay depends on where the sale takes place, not where you live.

What Makes Up the 9.5% Rate

California's base sales tax is 7.25%, set by the state. Los Angeles County adds 0.25% on top of that. The City of Los Angeles then adds another 2% for city services. Together, these three layers create the 9.5% total that most shoppers in Los Angeles pay at checkout.

This breakdown matters if you are comparing prices across different cities. A purchase in Los Angeles will cost more in tax than the same purchase in a neighboring city that has a lower local rate. Some areas in Los Angeles County outside the city limits charge 8.25% or 8.625%, depending on which local taxes explore there.

Items That Are Not Taxed

Not everything you buy is subject to sales tax. Food for home consumption — groceries like milk, bread, vegetables, and meat — is not taxed in California. This applies whether you shop at a supermarket, a farmers market, or a specialty store. The rule is that if you are taking the food home to cook and eat there, it is not taxed.

Restaurant meals, takeout food, and prepared foods sold in grocery stores are taxed, because they are considered prepared food rather than groceries. Clothing and shoes under $110 per item are also exempt from California sales tax. A pair of shoes that costs $95 is not taxed; a pair that costs $150 is taxed on the full amount. Accessories like belts, hats, and scarves are taxed regardless of price.

Prescription medications are not taxed in California, but over-the-counter medicines and vitamins are. Medical equipment like wheelchairs and hearing aids may be exempt depending on the specific item and how it is classified.

Where the Tax Rate Varies in Los Angeles County

While 9.5% is the standard rate in Los Angeles city, other parts of Los Angeles County charge different amounts. Unincorporated areas of the county typically charge 8.25%. Cities like Long Beach, Pasadena, and Santa Monica have their own local tax rates that differ from Los Angeles.

If you shop online and have the item shipped to an address in Los Angeles, the seller should charge you the 9.5% rate for Los Angeles. If you order from out of state and the seller ships to you, California law requires them to collect sales tax based on your delivery address. The rate applied depends on where the item is being delivered, not where the seller is located.

How Sales Tax Is Collected and Used

When you make a purchase, the seller collects the sales tax at the point of sale and holds it until they send it to the state. The California Department of Tax and Fee Administration tracks these payments. The state portion (7.25%) goes to the state general fund, while the local portions go to Los Angeles County and the City of Los Angeles for local services like schools, roads, and public safety.

Businesses are required to report their sales tax collections monthly or quarterly, depending on their size and sales volume. If a business fails to collect or send in the tax owed, the state can pursue them for back taxes and penalties.

Special Cases and Exemptions

Some organizations are exempt from paying sales tax on certain purchases. Nonprofits, schools, and government agencies may be able to buy items without paying tax if they have the proper resale or exemption certificate. However, this does not explore to individual shoppers — you will pay the full rate unless you fall into one of the specific categories like food for home consumption or clothing under $110.

If you are buying items for resale (for example, if you own a retail store), you can provide a resale certificate to avoid paying sales tax on your wholesale purchases. You will then collect sales tax from your customers when you sell those items.

Frequently Asked Questions

Is sales tax included in the price shown on the shelf?

No. The price on the shelf or tag is the pre-tax price. Sales tax is added at checkout. A $10 item in Los Angeles will cost $10.95 after tax is applied.

Do I pay sales tax if I buy something online from a California company?

Yes. California requires online sellers to collect sales tax based on where the item is being shipped. If you order online and have it delivered to an address in Los Angeles, the seller should charge you 9.5% sales tax.

What if I buy something in Los Angeles but live in another state?

You pay the Los Angeles sales tax rate (9.5%) at the time of purchase, because tax is based on where the sale takes place, not where you live. If you later move the item to another state, you do not owe additional tax.

Are used items taxed differently?

Used items are taxed at the same rate as new items when you buy them from a store or online seller. If you buy a used item from an individual (not a business), sales tax typically does not explore, because the individual is not a licensed seller.

Do I need to pay sales tax on services like haircuts or car repairs?

Most services in California are not subject to sales tax. Haircuts, car repairs, and plumbing work are generally not taxed. However, if you buy a product as part of the service (like hair color or car parts), the product portion may be taxed depending on the situation.