Tax rates in Los Angeles stack across several layers: a 9.75% combined sales tax, a base 1% property tax that usually lands above 1.1% once voter-approved bonds are added, a combined city and county real estate transfer tax of $5.60 per $1,000 of sale price, a 14% hotel occupancy tax, utility user taxes of 10% to 12.5%, and a business tax tied to gross receipts. Each has its own rules, deadlines, and exemptions.
Sales and Use Tax
Every purchase of tangible goods in the city of Los Angeles carries a combined sales and use tax rate of 9.75%.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That figure stacks California’s 7.25% statewide base with local district taxes approved by voters over the years, much of it dedicated to transportation.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information
Retailers collect the full rate at the register and remit it to the state. Buy something out of state and bring it to LA, and you owe the equivalent use tax, so there’s no advantage to shopping across state lines. Rates also differ from city to city within LA County. Several nearby cities carry a 10.25% combined rate, so what you owe depends on where the sale happens, not where you live. You can look up the exact rate for any address on the California Department of Tax and Fee Administration’s website.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
Property Tax
California’s Proposition 13 caps the base property tax rate at 1% of assessed value.3California Legislative Information. California Constitution Article XIII A – Tax Limitation Assessed value is set when you buy the property or finish new construction, and it can only rise by a maximum of 2% per year after that, regardless of the market. Two neighbors with identical homes can have wildly different tax bills because of it.
The 1% base rarely tells the whole story. Voter-approved bonds for schools, fire stations, and transit are layered on top as separate line items. The LA County property tax portal lists these as “voted indebtedness,” and they vary by district.4Los Angeles County Property Tax Portal. Adjusted Annual Property Tax Bill Most Los Angeles property owners end up paying an effective rate somewhere above 1.1%, depending on their neighborhood’s bond obligations.
Payment Deadlines
The annual bill comes in two installments. The first is due November 1 and becomes delinquent after December 10, when a 10% penalty applies. The second is due February 1, with a delinquency date of April 10 that triggers a 10% penalty plus a $10 processing fee.5Los Angeles County Property Tax Portal. Annual Secured Property Tax Bill Those deadlines are hard cutoffs. One day late costs the full penalty.
Challenging Your Assessment
If you believe your property has been overvalued, the annual window to challenge a regular assessment runs from July 2 through November 30.6Los Angeles County Assessment Appeals Board. Assessment Appeals Board For supplemental assessments triggered by a purchase or remodel, you get 60 days from the date printed on the notice or tax bill. Calamity-related reassessments allow six months. Filing an appeal doesn’t pause your obligation to pay, but a successful reduction produces a refund.
Real Estate Transfer Tax
When real property changes hands, both the county and city collect a transfer tax at the time the deed is recorded. The county charges $0.55 per $500 of sale price, or $1.10 per $1,000.7Los Angeles County Registrar-Recorder/County Clerk. Documentary Transfer Taxes – General Info The city adds $2.25 per $500, or $4.50 per $1,000.8American Legal Publishing. Los Angeles Municipal Code 21.9.2 – Tax Imposed Combined, that’s $5.60 per $1,000. On a $900,000 home, the base transfer tax runs $5,040.
Measure ULA on High-Value Sales
Properties selling above $5.3 million face an additional transfer tax under Measure ULA, the Homelessness and Housing Solutions Tax voters approved in 2022. As of July 2025, sales between $5,300,000 and $10,599,999 are taxed at 4%, and sales at $10,600,000 or above at 5.5%. The thresholds adjust annually for inflation.9Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
The detail that catches people off guard: Measure ULA applies to the entire sale price, not just the amount over the threshold. A $6 million sale triggers a 4% tax on the full $6 million, adding $240,000 on top of the base transfer tax. Certain transfers are exempt, including sales to qualified affordable housing organizations, government entities, and certain small nonprofits that have held tax-exempt status for at least ten years.10Los Angeles Housing Department. ULA Exemption Eligibility Guidelines
Hotel and Short-Term Rental Tax
Hotels and short-term rentals charge a 14% transient occupancy tax on stays of 30 consecutive days or less.11American Legal Publishing. Los Angeles Municipal Code 21.7.3 – Tax Imposed The tax is calculated on the room rate before other service fees. Hotels with 50 or more rooms also pass through a 2% Tourism Marketing District assessment as a separate line item.12City of Los Angeles. Non-Gross Receipts Business Tax Rate Table On a $250 room in a larger property, that’s $40 in city taxes and assessments before state and county charges.
If you rent out your home through a platform like Airbnb or Vrbo, the same 14% TOT applies. The city also requires a home-sharing registration, valid for 12 months and renewed annually, with the registration number displayed on all listing advertisements.13Los Angeles City Planning. Home-Sharing Many platforms collect and remit the TOT automatically, but the legal obligation falls on you as the operator.
Utility User Tax
The city taxes utility consumption at rates that vary by service type. For electricity, residential customers pay 10% of their charges, while commercial and industrial users pay 12.5%.14American Legal Publishing. Los Angeles Municipal Code 21.1.4 – Electricity Users Tax Gas and communications services carry their own rates under separate municipal code sections. The charges appear directly on your utility bill.
Seniors aged 62 and older and individuals with qualifying disabilities can apply for a Lifeline exemption. To qualify, the combined adjusted gross income of everyone in the household must be under $60,600 for the prior calendar year, and the utility account must be in the applicant’s name at a residential address inside the city.15Los Angeles Office of Finance. Lifeline – Utility Users Tax Exemption for Seniors and Individuals with Disabilities At 10% on electricity alone, a household spending $200 per month on power saves $240 a year.
City Business Tax
Any business operating within city limits owes an annual business tax based on gross receipts, with rates that vary significantly by industry. Retail businesses pay $1.27 per $1,000 of gross receipts, wholesale operations pay $1.01 per $1,000, and professions and occupations pay the highest rate at $4.25 per $1,000.16Los Angeles Office of Finance. Tax Information Booklet Other common categories:
- Contractors: $153 flat on the first $60,000, then $1.01 per $1,000 above that
- Rental of dwelling units or commercial property: $1.27 per $1,000
- Personal property rental: $2.55 per $1,000
- Parking operations: $4.25 per $1,000
Businesses with total worldwide gross receipts of $100,000 or less qualify for a small business exemption and owe nothing, provided they file their annual renewal on time.17Los Angeles Office of Finance. Tax Incentives and Exemptions That condition trips people up. The exemption isn’t automatic. Skip the renewal filing and you lose it, even if revenue falls well under the threshold. Every business still needs to register with the Office of Finance regardless of size.
Late Payment Penalties
Penalties add up fast across LA’s tax obligations. Missing a property tax deadline triggers an immediate 10% penalty on the unpaid installment with no grace period.5Los Angeles County Property Tax Portal. Annual Secured Property Tax Bill On a $5,000 installment, that’s $500 gone for being a day late.
California sales tax follows the same pattern. Businesses that fail to file on time owe a 10% penalty on the unpaid tax, and a separate 10% penalty applies if the late payment is attributed to negligence.18California Department of Tax and Fee Administration. Regulation 1703 Transient occupancy and business tax delinquencies carry their own penalty and interest schedules under the municipal code. Paying late is consistently expensive.