Sales tax in Los Angeles city is 9.5 percent

The sales tax rate in Los Angeles city is 9.5 percent. This is the combined rate of the state sales tax (7.25 percent) plus the local tax that Los Angeles County and the city of Los Angeles add on top. When you buy something at a store or online and it ships to an address in Los Angeles city, the seller adds 9.5 percent to your bill.

The rate you pay depends on your exact location. Los Angeles city proper has a 9.5 percent rate, but nearby areas in Los Angeles County — such as Long Beach, Santa Monica, or unincorporated county areas — have different rates because each city and district adds its own local portion. If you live or shop just outside Los Angeles city limits, your rate may be higher or lower.

Key Takeaways

  • Los Angeles city sales tax is 9.5 percent, made up of the state rate (7.25 percent) plus local additions.
  • The rate applies to most goods but not to groceries, prescription medications, or certain medical equipment.
  • Online purchases to a Los Angeles address are taxed at 9.5 percent, even if the seller is out of state.
  • Nearby cities and unincorporated areas of Los Angeles County have different rates, sometimes as high as 10.25 percent.
  • The local portion of the tax funds county and city services; the breakdown between county and city varies by location.

What the 9.5 percent rate includes

California's base sales tax is 7.25 percent statewide. Los Angeles County adds 0.25 percent, and the city of Los Angeles adds an additional 2 percent. Together, these make 9.5 percent. The county portion funds county services; the city portion funds city services such as streets, libraries, and fire departments.

This rate has been in place since 2017, when Los Angeles voters approved Measure M, a half-cent sales tax increase dedicated to transit and transportation projects. Before that, the rate was 9 percent. The 2 percent city portion includes the original 1.25 percent plus the 0.75 percent from Measure M.

Items that are not taxed

Not everything you buy is subject to the 9.5 percent rate. Groceries — items you buy at a supermarket to cook at home — are not taxed in California. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed, but raw groceries are not.

Prescription medications are also exempt from sales tax. Over-the-counter medicines like aspirin or cold medicine are taxed, but drugs you need a prescription to buy are not. Medical equipment such as wheelchairs, crutches, and diabetic testing supplies are typically exempt as well, though the rules can be specific to the item.

How the rate applies to online purchases

If you order something online and have it shipped to an address in Los Angeles city, the seller charges you 9.5 percent sales tax at checkout, regardless of where the seller is located. This applies to purchases from out-of-state retailers, Amazon, and other online marketplaces. The seller collects the tax and sends it to California.

If you pick up an order in person at a store in Los Angeles city, you pay the 9.5 percent rate. If you pick it up at a store outside the city — say, in Long Beach or Santa Monica — you pay that location's rate instead. The tax rate is based on where the item is delivered or picked up, not where you live.

Rates in nearby areas

Los Angeles city's 9.5 percent rate is not the same as the rest of Los Angeles County. Long Beach has a 10.25 percent rate. Santa Monica has a 10.25 percent rate. Pasadena has a 10.25 percent rate. Unincorporated areas of Los Angeles County — places not within any city — have a 9.5 percent rate, the same as Los Angeles city.

The variation exists because each city and special district can add its own local tax on top of the state and county base. A city might add a local tax to fund specific projects or services. If you shop near the border between Los Angeles city and another city, the rate can change depending on which side of the line the store is on.

Where the tax money goes

The 0.25 percent county portion goes to Los Angeles County for county-wide services. The 2 percent city portion is split: 1.25 percent funds general city services such as police, fire, parks, and libraries; 0.75 percent (from Measure M) is dedicated to transit and transportation projects, including bus and rail improvements.

Measure M, the transportation tax approved in 2017, is set to expire in 2042 unless voters renew it. Until then, that 0.75 percent continues to fund transit projects. If you see a breakdown of the tax on a receipt, it may not show this split — most receipts just show the total rate — but the city and county track the money separately.

Frequently Asked Questions

Is the sales tax rate the same everywhere in Los Angeles?

No. Los Angeles city is 9.5 percent, but nearby cities like Long Beach, Santa Monica, and Pasadena are 10.25 percent. Even within Los Angeles County, rates vary. Check the rate for your specific city or neighborhood if you are near a border.

Do I pay sales tax on groceries in Los Angeles?

No. Raw groceries — items you buy to cook at home — are not taxed in California. This includes produce, meat, dairy, and canned goods. Restaurant meals and prepared foods are taxed, but unprepared groceries are not.

Why is the sales tax so high in Los Angeles?

California's base rate is 7.25 percent. Los Angeles County adds 0.25 percent, and the city adds 2 percent (which includes the Measure M transportation tax). The combined rate of 9.5 percent is higher than some states, but it funds local services and transit projects that residents voted to support.

Do I have to pay sales tax on online orders shipped to Los Angeles?

Yes. Online retailers are required to charge sales tax on orders shipped to California addresses, including Los Angeles. The rate is 9.5 percent for Los Angeles city addresses. This applies even if the seller is out of state.

When does Measure M expire?

Measure M, the 0.75 percent transportation tax, is set to expire in 2042. If voters do not renew it before then, the sales tax rate in Los Angeles city will drop to 8.75 percent. The city and county would need to find other funding for transit projects.