Compton tax rates stack across four levels of government. Sales tax runs 10.75% on most purchases. Property tax starts at 1% of assessed value and climbs with voter-approved bonds. The city adds a utility user tax of 8.5% to 10% on monthly services, and California’s state income tax tops out at 14.4%. Here is how each one works and what you can do to reduce what you owe.
Sales and Use Tax: 10.75%
The combined sales and use tax rate in Compton is 10.75%, charged on most tangible goods and some services.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates California’s statewide base rate accounts for 7.25% of that total.2California Department of Tax and Fee Administration. Implementing New Local Jurisdictions or District Taxes The remaining 3.50% comes from district taxes layered on top.
Compton’s share of the local piece is Measure P, a 1% transaction and use tax voters approved in 2016 that flows to the city’s general fund for public safety and street maintenance.3Compton, CA. Measure P – Sales Tax Initiative (2016) Los Angeles County’s Measure A, a half-cent homelessness tax, took effect April 1, 2025 and replaced the earlier quarter-cent Measure H.4LA County Homeless Services and Housing. Measure A LA Metro transportation measures round out the balance.
Retailers collect the full 10.75% at checkout. The tax applies whether you buy locally or order from an out-of-state seller shipping into California.
Property Tax: 1% Plus Bond Add-Ons
California’s Proposition 13 caps the base property tax at 1% of assessed value.5Los Angeles County Assessor. Assessor – Proposition 13 Assessed value can rise no more than 2% per year unless the property sells or you build new, at which point it resets to market value.6California State Board of Equalization. California Property Tax An Overview
No Compton owner actually pays just 1%. Voter-approved bonds for the Compton Unified School District, community college districts, and county infrastructure add their own levies on top. The total varies by tax rate area and applies to residential, commercial, and industrial parcels alike.
When Property Tax Is Due
The Los Angeles County Treasurer and Tax Collector bills secured property taxes in two installments. The first is due November 1 and becomes delinquent after December 10. The second is due February 1 and becomes delinquent after April 10. A missed deadline brings a 10% penalty, and the second installment also carries a $10 administrative cost if paid late.7Los Angeles County Property Tax Portal. Adjusted Annual Property Tax Bill
Homeowner Exemption
If you live in the home you own, California’s homeowner exemption trims $7,000 off the assessed value. On a $400,000 home that’s about $70 a year. You file a one-time claim with the LA County Assessor and the exemption applies automatically after that. Second homes and rental property don’t qualify.
Utility User Tax: 8.5% to 10%
Compton charges a utility user tax on monthly services, with the rate depending on the service. Electricity, natural gas, and water are each taxed at 10%. Landline and mobile phone service are taxed at 8.5%.8City of Compton, CA. Compton Municipal Code – Chapter 3 Taxation Your service provider adds the tax to the bill and sends it to the city, where it helps fund public safety.
For a household with $300 a month in combined utility bills, the tax adds roughly $25 to $30 depending on the service mix.
Senior and Low-Income Exemption
Residents who are 62 or older, or officially disabled, can apply for a utility user tax exemption if they meet income limits and hold the utility accounts in their own name.9Compton, CA. Utility Users Tax Exemption You apply in person at the City Treasurer’s Office with recent bills for gas, electricity, phone, and water, proof of income, and a government photo ID. The city doesn’t issue refunds for months before you file, so apply as soon as you qualify.
Documentary Transfer Tax on Property Sales
When Compton real estate changes hands, Los Angeles County charges a documentary transfer tax of $1.10 per $1,000 of the sale price, after subtracting any liens the buyer assumes.10Los Angeles County Registrar-Recorder/County Clerk. Documentary Transfer Taxes – General Info A $500,000 sale generates a $550 tax. Gifts between family members, transfers into a revocable living trust, and property divisions in divorce are exempt, but the exemption has to be declared on the face of the recorded document.
Business License Tax
Any business operating inside Compton city limits needs a city business license. Fees are tied to the type of business and its revenue, with a gross receipts tax referenced in the city’s licensing provisions.8City of Compton, CA. Compton Municipal Code – Chapter 3 Taxation A retail store and a contractor won’t pay the same amount. Applications and renewals go through the city’s business license office.11City of Compton, California. Business License
California State Income Tax
Compton residents also pay California’s graduated state income tax, which includes some of the highest rates in the country. Nine brackets start at 1% on the first several thousand dollars of taxable income and climb to a top marginal rate of 14.4% on income above $1 million, a figure that includes a 1% mental health services surcharge. California does not tax Social Security benefits, which matters for retirees. Returns go to the Franchise Tax Board.
Federal Deductions That Reduce the Total
If you itemize on your federal return, some of what you pay in Compton can come back as a deduction.
State and Local Tax (SALT) Deduction
The SALT deduction covers state income tax, property tax, and either sales tax or income tax (not both). Under the One Big Beautiful Bill Act signed in 2025, the cap sits at $40,400 for most filers in 2026, with a $20,200 limit for married couples filing separately. The cap rises 1% each year through 2030. Compton homeowners who pay both California income tax and sizeable property tax often hit the ceiling.
Mortgage Interest Deduction
You can deduct interest on up to $750,000 of mortgage debt for loans taken out after December 15, 2017, a limit the One Big Beautiful Bill Act made permanent. Mortgages that predate that cutoff keep the older $1 million limit. In Southern California, where home prices push loan balances up, this deduction often beats the SALT deduction in dollar terms.