Pasadena city taxes include a 10.50% combined sales tax, a property tax capped at 1% of assessed value plus voter-approved add-ons, a business license tax that varies by trade, utility user taxes from 7.50% to 9.40%, a 12.11% hotel and short-term rental tax, and a real estate transfer tax of $1.10 per $1,000 of sale price. What follows is what each one costs, when it’s due, and who collects it.
Sales and Use Tax
Retail purchases of tangible goods in Pasadena are taxed at a combined rate of 10.50%.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates California’s statewide base accounts for 7.25%, and voter-approved district taxes add the remaining 3.25%.
The city’s own piece is Measure I, a 0.75% transaction and use tax Pasadena voters approved in November 2018, which funds fire, police, street repairs, homeless services, and after-school programs through the General Fund. Groceries and prescription medications are not subject to the tax.
The rest of the district portion goes to Los Angeles County. Pasadena’s rate rose from 10.25% to 10.50% when the countywide homelessness tax under Measure A replaced the earlier Measure H in April 2025, doubling the county share from a quarter cent to a half cent.2California Department of Tax and Fee Administration. Explanation of Tax Rate Changes
Property Tax
Pasadena property tax follows the statewide framework set by Proposition 13. The base ad valorem tax on real property cannot exceed 1% of assessed value.3Justia. California Constitution Article XIII A Section 1 Assessed value is set at purchase (or when new construction is completed) and rises by no more than 2% per year afterward, regardless of the market.4California Legislative Information. California Constitution Article XIII A – Tax Limitation A long-time owner and a new buyer on the same street can pay very different amounts.
Voter-Approved Add-Ons
Your annual bill includes charges beyond the 1% base. Pasadena property owners pay the Library Special Tax under Chapter 4.109 of the Pasadena Municipal Code, with a rate that adjusts annually by a cost-of-living formula and applies to single-family homes, condominiums, multi-unit residential buildings, and nonresidential parcels.5City of Pasadena. City of Pasadena Library Special Tax Ordinance School bonds, community college bonds, and metropolitan water district assessments appear as separate line items.
Supplemental Bills After Purchase
Buying property triggers a reassessment by the Los Angeles County Assessor. If the new assessed value exceeds what the prior owner was paying, you receive supplemental tax bills on top of the standard annual bill.6Treasurer and Tax Collector. New Property Owner The county mails these directly to you, even if a lender normally pays your taxes through escrow. A lower reassessment produces a refund instead.
Due Dates
The annual secured property tax bill is paid in two installments. The first is due November 1 and delinquent after December 10. The second is due February 1 and delinquent after April 10.7Treasurer and Tax Collector. Secured Property Taxes General Information Not receiving a bill in the mail does not excuse a late payment or waive penalties.
Business License Tax
Anyone conducting business in Pasadena must obtain a business license before opening, and the tax owed depends on the type of business.8City of Pasadena. Business Licenses – Department of Finance Rates from the city’s adopted fee schedule include:
- General business: $196.34 base plus $38.97 for each employee after the first.
- Professional business: $521.44 for the first professional, $260.05 for each additional professional, plus $38.97 per non-professional employee.
- Contractors: $1,571.35 for general engineering contractors, $1,047.97 for general building contractors, and $786.33 for specialty contractors. Six-month licenses cost 60% of the annual rate; three-month licenses cost 30%.
- Businesses with take-out service: $391.38 base plus $78.00 per employee after the first.
Figures adjust periodically.9City of Pasadena. Schedule of Taxes, Fees, and Charges
Late Penalties
Penalties escalate quickly. An account 30 days past due incurs a 25% penalty on the original tax, and another 25% stacks on the first day of each following month up to a 100% cap. Interest also accrues at 1.5% per month.10City of Pasadena. Business License Application A $500 tax left unpaid four months past due can grow to $1,000 in penalties alone before interest. The city sends a renewal notice at least ten days ahead of the due date and gives a 30-day grace period before penalties start.
Utility User Tax
Utility services are taxed under Chapter 4.56 of the Pasadena Municipal Code at the following rates:11City of Pasadena. Utility Users Tax
- Electricity: 7.67%
- Gas: 7.90%
- Water: 7.67%
- Telecommunications: 8.28%
- Prepaid wireless: 7.50%
- Video (cable and streaming TV): 9.40%
Your utility provider collects the tax on your regular bill and remits it to the city, so no separate payment is required. Rates apply to both residential and commercial accounts.
Transient Occupancy Tax
Hotels, motels, and short-term rentals charge guests a 12.11% transient occupancy tax on the room rate.12City of Pasadena. Short-Term Rental Regulations Short-term rental hosts must file quarterly and remit both the tax and Tourism Business Improvement District assessments on this schedule:
- First quarter: due April 20
- Second quarter: due July 20
- Third quarter: due October 20
- Fourth quarter: due January 20
Starting April 1, 2026, Airbnb and VRBO will automatically collect and remit the transient occupancy tax and TBID assessments for Pasadena bookings. Hosts who list exclusively on those platforms will no longer send payment themselves, but they must still file the quarterly activity report. Missing the report means non-renewal of the short-term rental permit even when no money is owed. Hosts on other platforms remain responsible for both filing and payment.12City of Pasadena. Short-Term Rental Regulations
Real Property Transfer Tax
When real estate changes hands, the transaction is subject to a documentary transfer tax of $0.55 for every $500 of the sale price or equity transferred, which works out to $1.10 per $1,000.9City of Pasadena. Schedule of Taxes, Fees, and Charges A $1 million home carries a $1,100 transfer tax. Pasadena does not add a city-level transfer tax on top of the standard county rate.13Los Angeles County Registrar-Recorder/County Clerk. Documentary Transfer Taxes – General Info
Exemptions and Relief
Property owners age 62 or older can apply for an exemption from the Library Special Tax. Qualifying requires enrollment in Pasadena Water and Power’s CARES or CARES Plus discount program, and applications must be received by June 30 to take effect for the upcoming billing cycle.14Pasadena Public Library. Library Special Tax – Exemption
Proposition 13’s 2% annual cap on assessed value increases works as ongoing relief for long-term owners, since Pasadena home values have generally risen faster than 2% per year.4California Legislative Information. California Constitution Article XIII A – Tax Limitation
Where to Pay
Property tax payments go to the Los Angeles County Treasurer and Tax Collector, not the City of Pasadena. The county accepts payment online, by mail, or in person, on the two-installment schedule above.7Treasurer and Tax Collector. Secured Property Taxes General Information
Business license taxes go to the City of Pasadena Finance Department. Utility user taxes are collected automatically by your service provider. Short-term rental hosts file and pay through the city’s online rental registration portal. Keep confirmation records for every submission, because the burden of proving timely payment sits with the taxpayer if a dispute comes up.