The Los Angeles sales tax rate is 9.75 percent as of 2026, a combined figure that includes California’s statewide base plus several voter-approved county district taxes.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates It applies to most purchases of physical goods within city limits. The rate moved up in April 2025, when Measure A, a half-cent countywide tax for homeless services, replaced the smaller quarter-cent Measure H that was expiring.2California Department of Tax and Fee Administration. Explanation of Tax Rate Changes Operative April 1, 2025
How the 9.75 Percent Is Built
California’s statewide base rate is 7.25 percent, charged everywhere in the state. That base funds the state general fund, local public safety, health and social services, and a portion that goes directly to city and county budgets. The remaining 2.50 percent in Los Angeles comes from district taxes that county voters approved for specific purposes.
The two largest are Measure M and Measure R, each adding 0.50 percent for transportation projects like rail expansion and highway improvements across Los Angeles County. Measure A, approved in November 2024, adds another 0.50 percent for homelessness prevention and housing.3Los Angeles County Homeless Services. Measure A – LA County Homeless Services and Housing Smaller district levies make up the balance.
Rates vary across Los Angeles County. Some neighboring cities carry rates above 10 percent because they’ve approved their own additional district taxes on top of the county-wide ones. When goods are delivered, the rate is based on the delivery address, not the seller’s location. The CDTFA publishes an address lookup tool to confirm the exact rate for any point in the state.4California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
What the Tax Applies To
California sales tax applies to retail sales of tangible personal property: clothing, electronics, furniture, appliances, housewares, and similar physical items. Every retail sale is taxable unless a specific exemption applies.5California Legislative Information. California Revenue and Taxation Code 6051 – Imposition of Tax
Groceries
Most food bought for home consumption is exempt. That covers produce, meat, dairy, bread, cereal, canned goods, and similar staples.6California Legislative Information. California Revenue and Taxation Code 6359 – Food Products The exemption disappears when food is sold hot, served for on-site consumption, or bought from a restaurant. A rotisserie chicken from a grocery deli counter is taxable because it’s sold hot; the same chicken bought raw is not. Carbonated drinks and alcohol are always taxable, no matter where you buy them.
Prescription Medicine and Medical Devices
Prescription medications dispensed by a licensed pharmacist are exempt.7California Department of Tax and Fee Administration. California Code 6369 – Prescription Medicines Over-the-counter medicine is fully taxable. Prosthetic devices and artificial limbs that replace or assist a natural body part are exempt, along with their replacement parts. Dental prosthetics, hearing aids, and eyeglasses are not covered by that exemption.
Software and Digital Products
California currently taxes software only when it’s delivered on physical media like a disc or USB drive. Downloaded software, remotely accessed software, e-books, music files, and streaming content are not subject to sales tax.8Legislative Analyst’s Office. The 2026-27 Budget: Sales Tax on Prewritten Software The Governor has proposed extending the tax to downloaded prewritten software starting January 1, 2027, though custom software would remain exempt. The proposal has not passed.
Occasional Sales
Selling your own belongings when you’re not in the business of selling goods generally qualifies as an occasional sale and is exempt.9California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6367 The sale can’t be part of a pattern frequent enough to require a seller’s permit.10California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6006.5 Selling an old couch through a marketplace app is almost certainly fine. Flipping furniture every weekend is not. Vehicles, vessels, and aircraft are specifically excluded; they’re always taxable regardless of how rarely you sell one.
Shipping and Fabrication Labor
Delivery charges can be left out of the taxable amount, but only if three conditions are all met: you ship by common carrier, the U.S. Postal Service, or a contract carrier; the delivery charge is listed separately on the invoice; and the charge doesn’t exceed your actual shipping cost.11California Department of Tax and Fee Administration. Shipping and Delivery Charges Bundling shipping and handling into one line makes the handling portion taxable. Inflating a delivery charge above your real cost makes the excess taxable. Without records of what you actually paid to ship, the entire charge becomes taxable.
Pure service labor like consulting, design, or repair isn’t taxable. But labor that creates or assembles a product is. If you commission a custom cabinet, the fabrication labor is part of the taxable sale, whether it’s itemized separately or rolled into one price.12California Department of Tax and Fee Administration. Taxable Labor – Publication 108
Use Tax on Out-of-State and Online Purchases
Buying something from a seller that doesn’t collect California sales tax, then using the item in Los Angeles, means you owe use tax at the same 9.75 percent rate. Use tax exists to keep out-of-state sellers from having a built-in price advantage over local businesses.13California Legislative Information. California Revenue and Taxation Code 6201 – Imposition of Tax
Most people run into this with online orders or things bought while traveling. The easiest way to report and pay is on your California state income tax return, which has a line for use tax and a lookup table that estimates the amount based on your income. You can also pay the CDTFA directly through its online portal.14California Department of Tax and Fee Administration. California Use Tax Individuals and businesses with more than $10,000 a year in untaxed purchases (not counting vehicles, vessels, or aircraft) must register with the CDTFA as a “qualified purchaser” and report use tax directly instead of through an income tax return.15California Department of Tax and Fee Administration. Frequently Asked Questions – Qualified Purchaser Program That $10,000 threshold runs through December 31, 2028, after which a $100,000 gross receipts standard takes over.
If You’re a Business Collecting the Tax
Every business selling tangible goods in Los Angeles needs a seller’s permit from the CDTFA. The application takes the business name, each place of business, and other details the CDTFA requests.16California Legislative Information. California Revenue and Taxation Code 6066 – Permits The permit itself has no fee, though the CDTFA may require a security deposit based on the business.
Filing frequency is assigned by the CDTFA based on sales volume: yearly, quarterly, monthly, or quarterly with monthly prepayments.17California Department of Tax and Fee Administration. Filing Dates for Sales and Use Tax Returns Interest and penalties apply to late returns, underpayments, and incorrect rate calculations.18California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee Because the rate depends on where the item is delivered, confirming the delivery address on every sale matters more than most new business owners expect.
Businesses that buy goods purely to resell them can skip paying tax at purchase by giving the supplier a valid resale certificate. The certificate must include the buyer’s name and address, seller’s permit number, a description of the goods, a statement that the purchase is “for resale,” the date, and the buyer’s signature.19California Department of Tax and Fee Administration. Sales for Resale – Valid Resale Certificates Sellers can verify a buyer’s permit number through the CDTFA’s online tool or by calling 1-888-225-5263.
Selling into California from another state can trigger a California collection duty even without any physical presence here. The economic nexus threshold is $500,000 in combined sales of tangible property delivered into the state during the current or preceding calendar year.20California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6203 For sales made through platforms like Amazon, eBay, or Etsy, the marketplace is generally responsible for collecting and remitting the tax.21California Department of Tax and Fee Administration. Tax Guide for Marketplace Facilitator Act
Anyone buying an existing Los Angeles business should ask the CDTFA for a tax clearance certificate before closing. The buyer can inherit the previous owner’s unpaid sales tax, interest, and penalties up to the purchase price. If the CDTFA doesn’t respond within 60 days after the latest of three dates (receipt of the written request, the date of sale, or the date the seller’s records become available for audit), the buyer is released from that successor liability.22Legal Information Institute. Successors Liability