North Hollywood is a neighborhood of the City of Los Angeles, so the tax rates that apply here are the City of Los Angeles and Los Angeles County rates layered on top of California’s statewide taxes. Sales tax runs 9.75%. Property tax starts at 1% of assessed value under Proposition 13 and typically lands near 1.25% once voter-approved bonds are added. Businesses owe a city gross receipts tax that varies by industry. Real estate sales trigger a combined county and city transfer tax of $5.60 per $1,000 of the sale price, with an extra Measure ULA tier above $5.3 million.
Sales and Use Tax Rate
The combined sales and use tax rate in North Hollywood is 9.75%, the same rate charged throughout the City of Los Angeles.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That figure is built from the statewide base of 7.25% plus 2.50% in local district taxes approved by voters.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information Measure R and Measure M each contribute 0.5% of the local portion, dedicated to Metro transportation projects, with the rest going to other county and city levies.
The rate applies to retail sales of tangible goods delivered or used within the city.
Use Tax on Out-of-State Purchases
Buy something from an out-of-state retailer that doesn’t collect California sales tax, and you owe use tax at the same 9.75% rate. This comes up most often with online orders, furniture shipped from another state, or vehicles brought in from elsewhere. Most individuals report and pay use tax on their California income tax return using the worksheet in the instructions. Vehicles, vessels, and aircraft are handled differently: use tax on those is paid directly to the CDTFA.3California Department of Tax and Fee Administration. California Use Tax, Good for You. Good for California
Property Tax Rate
Under Proposition 13, which added Article XIII A to the California Constitution, the base property tax rate is capped at 1% of assessed value.4California Legislative Information. California Constitution Article XIII A – Tax Limitation Voter-approved bonds for schools and local infrastructure push the effective rate closer to 1.25%, with the exact figure depending on which agencies tax your parcel. Every property in Los Angeles County sits inside a Tax Rate Area, and the LA County Auditor-Controller publishes a lookup tool that returns the precise rate for your address.5Los Angeles County Auditor-Controller. Tax Rate Area Lookup
How Fast Your Assessment Can Rise
Proposition 13 also limits the yearly change in assessed value to the lesser of 2% or the actual change in the California Consumer Price Index.6California Department of Tax and Fee Administration. Decline in Value – Proposition 8 CPI usually exceeds 2%, so long-term owners generally see the 2% ceiling in practice. A sale or new construction resets the property to full market value, which often produces a much larger jump.
Supplemental Bills After a Purchase
That reassessment produces a supplemental tax bill on top of the regular one. The county recalculates taxes as of the first day of the month after the ownership change, prorated for the rest of the fiscal year.7Los Angeles County Treasurer and Tax Collector. Supplemental Secured Property Tax Bill If the sale closes between January and May, expect two supplemental bills: one for the balance of the current fiscal year and another for the full year ahead. The amount reflects the difference between the prior assessed value and your purchase price, multiplied by the 1% general levy and prorated by months.
Payment Deadlines
Regular property tax bills come 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 10.8California Tax Service Center. Property Tax Function Important Dates Missing either date triggers a 10% penalty on the unpaid amount. Many owners pay through a mortgage escrow account, but if you own outright or your lender doesn’t escrow, you handle the dates yourself.
Business Tax Rate
Any person or entity doing business in North Hollywood owes the City of Los Angeles Business Tax, charged as a rate per $1,000 of annual gross receipts. The rate depends on how the city classifies your activity. Common categories include:9Los Angeles Office of Finance. Tax Information Booklet
- Retail sales: $1.27 per $1,000 of gross receipts
- Wholesale sales: $1.01 per $1,000
- Professions and occupations: $4.25 per $1,000
- Rental of dwelling units or commercial property: $1.27 per $1,000
- Contractors: $153 for the first $60,000, plus $1.01 per $1,000 above that
- Personal property rental: $2.55 per $1,000
The spread matters. A freelance consultant earning $200,000 owes $850 under the professions rate. A retail shop with the same revenue owes $254. Classification drives the bill.
Small Business Exemption
If your total annual gross receipts, including revenue earned outside the city, are $100,000 or less, you owe no business tax.10Los Angeles Office of Finance. Tax Incentives and Exemptions The catch is that you still have to be registered with the city and file your renewal on time. Miss the filing and the exemption disappears even if your revenue would have qualified.
Filing Deadline
The annual business tax renewal for 2026 is due by March 2, 2026. Payments must reach a branch office by 4:00 p.m., be postmarked by that date, or be filed electronically by 11:59 p.m.11Los Angeles Office of Finance. Business Tax Renewal Instructions Late penalties escalate quickly: 5% of the tax owed on day one of delinquency, another 5% each subsequent month, and a 40% cap after four months.12Los Angeles Office of Finance. Penalties Rates A $1,000 bill becomes $1,400 if you wait five months.
Real Estate Transfer Tax Rate
Selling property in North Hollywood triggers transfer taxes at both the county and city level, assessed on the sale price and typically paid at the close of escrow.
The Los Angeles County Documentary Transfer Tax is $0.55 per $500 of value conveyed, or $1.10 per $1,000.13Los Angeles County Registrar-Recorder. Documentary Transfer Tax General Information The City of Los Angeles adds $2.25 per $500, or $4.50 per $1,000.14American Legal Publishing. Los Angeles Municipal Code Section 21.9.2 – Tax Imposed Combined, that is $5.60 per $1,000 of sale price. On an $800,000 home, the seller owes $880 to the county and $3,600 to the city, totaling $4,480. Transfers between spouses and conveyances into a revocable living trust where the transferor is a beneficiary are among the exempt categories.
Measure ULA on High-Value Sales
Sales above $5.3 million carry an additional tax under Measure ULA, officially the Homelessness and Housing Solutions Tax. Properties conveyed for more than $5,300,000 but under $10,600,000 are taxed at 4% of the full consideration. Sales at $10,600,000 or above are taxed at 5.5%.15Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ The thresholds adjust annually by the Chained Consumer Price Index; the figures above apply after June 30, 2025. The tax applies to the entire sale price, not just the amount above the threshold, so a $6 million sale produces $240,000 in Measure ULA tax on top of the $33,600 in base transfer taxes. Most North Hollywood houses sell well below the threshold, but commercial and multi-unit properties can reach it.
How the SALT Cap Affects What You Actually Pay
Federal law lets itemizers deduct state income taxes and property taxes, but caps the combined deduction at $40,400 for the 2026 tax year ($20,200 if married filing separately).16Office of the Law Revision Counsel. 26 USC 164 – Taxes The cap rises 1% annually through 2029 and reverts to $10,000 in 2030 under current law. North Hollywood homeowners paying both California income tax and property tax often hit this ceiling, so part of the state and local burden produces no federal deduction. The city business tax is treated differently: it is deductible as a business expense on Schedule C or an entity return, and that deduction is not subject to the SALT cap.