The Palmdale sales tax rate is 11.25%, effective April 1, 2025.1California Department of Tax and Fee Administration. New Sales and Use Tax Rates Effective April 1, 2025 That is a full percentage point higher than the 10.25% rate Palmdale carried before, and it puts the city among the highest-taxed in Los Angeles County for retail purchases. The rate applies to most physical goods bought within city limits, but several big categories, including grocery food and prescription drugs, stay exempt.
How the 11.25% Is Built
Every taxable sale in Palmdale carries the same 11.25% combined rate, collected by the retailer and distributed by the California Department of Tax and Fee Administration (CDTFA) to the state, county, city, and regional agencies entitled to a share.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
The rate sits on California’s 7.25% statewide base. On top of that base, Palmdale shoppers pay an additional 4% in district taxes. The two largest locally controlled pieces are Palmdale’s own Measure AV at 0.75% and Los Angeles County’s Measure A at 0.50%. The rest comes from various Los Angeles County and regional transportation and transit measures that apply countywide.
Why the Rate Went Up in 2025
The jump from 10.25% to 11.25% on April 1, 2025, was driven by Measure A, a half-cent countywide sales tax that Los Angeles County voters approved in November 2024 to fund homelessness programs, including housing construction, rental assistance, and support services.3LA County Homeless Services & Housing. Measure A Measure A applies across the county, so every city in Los Angeles County saw a similar increase on the same date.
The other local piece, Measure AV, has been in place since Palmdale voters approved it in November 2020. It adds 0.75% and generates roughly $12 million per year, all of which stays in Palmdale to fund street repair, 911 response, homelessness services, park maintenance, veterans and senior programs, mental health initiatives, and community policing.4City of Palmdale, CA. Measure AV Oversight Committee A seven-member citizens’ oversight committee reviews the spending each year. The tax has no expiration date and runs until voters end it.
What You Pay Sales Tax On
The 11.25% rate applies to retail sales of tangible personal property, meaning physical items you can buy and take with you. Electronics, clothing, furniture, building materials, appliances, and vehicles all carry the full rate. A few categories work differently, and the differences are worth knowing before you assume a receipt is wrong.
Grocery Food Is Exempt
Most food bought at a grocery store for home consumption is exempt in California.5California Department of Tax and Fee Administration. Sales and Use Tax Regulations – Article 8 Produce, meat, dairy, bread, canned goods, frozen meals, cereal, eggs, cooking oils, and snack foods including candy and chips are not taxed. Carbonated beverages and alcohol are taxable. Juice, bottled water, coffee, and milk are not taxed when sold cold and unheated at a store.
Hot and Restaurant Food Is Taxed
Hot food is always taxable. If a deli heats your sandwich, a gas station warms your burrito, or a restaurant plates your meal, that sale is taxable whether you dine in or take it to go.6California Department of Tax and Fee Administration. Regulation 1603 Cold food is trickier. Under the “80-80 rule,” restaurants and food sellers where more than 80% of revenue comes from food and more than 80% of food sales are already taxable must charge tax on cold takeout too. So a sit-down restaurant selling you a cold sandwich to go will likely charge tax; a grocery deli selling the same sandwich likely won’t.
Prescriptions and Prescribed Medical Devices
Prescription medications are exempt, as are certain medical devices prescribed by a licensed practitioner. Over-the-counter drugs and supplements are generally taxable.
Digital Goods and Software
California generally does not tax digital products delivered electronically. Downloaded software, ebooks, mobile apps, streaming subscriptions, and digital music are exempt as long as no physical media is included.7California Department of Tax and Fee Administration. Internet Sales – Nontaxable Sales (Publication 109) If the seller bundles a physical backup copy, like a USB drive, with the download, the entire transaction becomes taxable. That matters most for business software, where vendors sometimes ship a physical backup along with electronic delivery.
Services
Professional services such as legal advice, accounting, consulting, and medical care are not subject to sales tax. The tax applies to goods, not labor or expertise. When a service includes transferring a physical product, like a mechanic installing a part, the product portion is typically taxable even though the labor is not.
Use Tax on Out-of-State and Online Purchases
When you buy something from an out-of-state retailer that doesn’t collect California tax, you owe “use tax” at the same 11.25% rate. The idea is to keep local stores and remote sellers on even footing. Most large online retailers and marketplace platforms, including Amazon, already collect California tax at checkout because state law requires it for platforms exceeding $500,000 in annual California sales.8California Department of Tax and Fee Administration. Use Tax Collection Requirements Based on Sales into California
Where use tax actually comes up is purchases from smaller out-of-state sellers, private-party transactions across state lines, or items you buy while traveling and bring home. You report and pay by April 15 of the following year, either on your California income tax return (Form 540) or by filing directly with the CDTFA.9California Department of Tax and Fee Administration. California Use Tax For Personal Use For individual purchases under $1,000 each, the CDTFA’s lookup table is an alternative to tracking exact amounts. Vehicles, boats, aircraft, and mobile homes are exceptions and must be reported directly to the CDTFA rather than on your income tax return.
If You Sell in Palmdale
Selling taxable goods in Palmdale requires a California seller’s permit before your first sale. Registration is free through the CDTFA’s online system, though the agency may require a security deposit based on your estimated sales to cover unpaid taxes if the business later closes.10California Department of Tax and Fee Administration. Obtaining a Seller’s Permit
The CDTFA assigns your filing frequency, monthly, quarterly, or annually, based on your sales volume and tax liability. Businesses averaging $17,000 or more per month in tax liability must make monthly prepayments. The agency can reassign your frequency as your sales change, so check your filing portal after any significant revenue shift. Returns are filed and paid online.
Missing a filing deadline or paying late triggers a 10% penalty on the unpaid tax. If you both file late and pay late, the combined penalty still caps at 10% for that period rather than doubling.11California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee Interest also accrues monthly on unpaid balances at a rate tied to the IRS underpayment rate plus three percentage points. A $5,000 tax bill left unpaid for six months can easily grow by several hundred dollars in combined penalties and interest.
Keep records of every sale, including date, items sold, price, tax collected, and payment method. If you accept resale certificates from wholesale buyers, hold onto them; you’ll need them to justify why no tax was collected if you’re audited. The CDTFA can look back several years, so keeping records longer than you think necessary is the safer play.