The sales tax rate in San Pedro is 9.75 percent. San Pedro is a neighborhood within the City of Los Angeles, not a separate municipality, so it uses the same combined rate as the rest of the city. The rate rose from 9.5 percent on April 1, 2025, after Los Angeles County voters approved Measure A, a half-cent homelessness services tax that replaced the smaller quarter-cent Measure H.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates
How the 9.75 Percent Breaks Down
California’s statewide base rate is 7.25 percent. That portion goes to a mix of state programs and local public safety and is collected by every retailer in the state.2California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate The remaining 2.50 percent in San Pedro comes from five voter-approved countywide district taxes:
- Proposition A (1980), 0.50% — transit funding, including bus and rail service and local return to cities.3LA Metro. Propositions A and C
- Proposition C (1990), 0.50% — rail security, commuter rail, transit-related highway work, and local return.3LA Metro. Propositions A and C
- Measure R (2008), 0.50% — transportation projects, financed and accelerated under a two-thirds supermajority approval.4LA Metro. Measure R
- Measure M (2016), 0.50% — further rail and bus network expansion.
- Measure A (2024), 0.50% — homelessness prevention and housing. It repealed and replaced Measure H’s quarter-cent, a net increase of 0.25 percent that moved the combined rate from 9.50 to 9.75 percent.5City of El Segundo. LA County Sales Tax Rate Change – Effective April 1, 2025
Four of the five are transit-related. A $100 taxable purchase in San Pedro adds $9.75 in sales tax.
What Gets Taxed and What Doesn’t
California sales tax applies to tangible personal property — physical items you can see, touch, or weigh.6California Department of Tax and Fee Administration. Revenue and Taxation Code 6016 – Tangible Personal Property Clothing, electronics, furniture, and building materials all trigger the full 9.75 percent, calculated on gross receipts (the total price before coupons or negotiated reductions).7California Department of Tax and Fee Administration. Revenue and Taxation Code 6051 – Imposition and Rate of Sales Tax
Pure services generally aren’t taxed. A haircut, a labor-only plumbing call, or a consultant’s time won’t trigger sales tax. If the provider also sells you parts, the parts portion is taxable.8California Department of Tax and Fee Administration. Common Sales and Use Tax Nontaxable Sales and Partial Exemptions
Two exemptions matter for most households. Groceries bought for home consumption are tax-free, but the exemption is lost when food is sold hot, served as a prepared meal, or eaten on the seller’s premises. A cold sandwich from the grocery deli is exempt; a hot rotisserie chicken may not be.8California Department of Tax and Fee Administration. Common Sales and Use Tax Nontaxable Sales and Partial Exemptions Prescription medicine is exempt under Revenue and Taxation Code Section 6369.9California Department of Tax and Fee Administration. Sales and Use Tax Regulation 1591 Over-the-counter medications and supplements are generally taxable unless they meet specific nutritional thresholds as complete dietary foods.10California Department of Tax and Fee Administration. Sales and Use Tax Regulations – Article 8
Online Shopping and Use Tax
Since October 2019, California has required marketplace facilitators such as Amazon, eBay, and Etsy to collect and remit sales tax for third-party sellers.11California Department of Tax and Fee Administration. Sales and Use Tax Law – Chapter 1.7 For a San Pedro delivery address, that means most online purchases already include the correct 9.75 percent.
The gap shows up with smaller online retailers or out-of-state sellers that don’t collect California tax. When that happens, you owe use tax at the same 9.75 percent rate. Use tax exists to prevent tax-free shopping across state lines and covers any taxable item on which the seller didn’t collect California sales tax.12California Department of Tax and Fee Administration. California Use Tax
The simplest way to report use tax as an individual is on your annual California income tax return. The return includes a worksheet, and the CDTFA publishes a lookup table based on adjusted gross income if you don’t want to track every purchase. If you already paid sales tax to another state, you can claim a credit for that amount against the California use tax owed.12California Department of Tax and Fee Administration. California Use Tax
Private-Party Vehicle, Boat, and Aircraft Purchases
Buying a car, boat, or aircraft from a private seller is where use tax hits hardest, because no dealer is at the point of sale to collect it. You typically pay the use tax when you register the vehicle with the DMV, calculated on the total purchase price including any debt you assume. If you don’t pay at registration, the deadline for paying the CDTFA directly is the last day of the month following your purchase.13California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles
A true gift is exempt, but the CDTFA’s definition is strict. If you pay anything, trade anything, or assume any loan balance, it isn’t a gift. Supporting documents are a signed statement from the former owner and a copy of the title.13California Department of Tax and Fee Administration. Tax Guide for Purchasers of Vehicles
Seller’s Permits and Filing
Anyone selling or leasing tangible personal property in San Pedro needs a seller’s permit from the CDTFA. The permit itself is free, though the agency may require a refundable security deposit based on projected sales. Individuals, corporations, partnerships, and LLCs all need one, and it covers both retail and wholesale activity. Temporary sellers running a holiday booth or weekend sale need a temporary permit for selling periods of 90 days or less at one location.14California Department of Tax and Fee Administration. Obtaining a Seller’s Permit
After registration, the CDTFA assigns a filing frequency (monthly, quarterly, or annual) based on tax liability. New businesses often start monthly, and the agency can adjust the schedule as sales history develops. Returns are due by the last day of the month following the reporting period, with the deadline shifting to the next business day when it falls on a weekend or holiday.15California Tax Service Center. Sales and Use Tax
Late Filing and Other Penalties
Missing a filing deadline or paying late triggers a 10 percent penalty on the tax owed. If you both file and pay late, the combined penalty stays capped at 10 percent for that period; the CDTFA doesn’t stack them. Interest also accrues for each month or partial month a payment is overdue.16California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee
Steeper penalties apply to more serious violations:
- Negligence: 10 percent, when the CDTFA finds you underreported tax through carelessness or intentional disregard of the law.
- Fraud: 25 percent, plus potential criminal prosecution.
- Collecting tax but not remitting it: 40 percent, if you knowingly collected sales tax from customers and failed to send it to the state, provided the unremitted amount averages over $1,500 per month and exceeds 25 percent of your total liability for the period.
- Operating without a permit: 50 percent on top of the standard late-filing penalty, if the CDTFA finds you deliberately avoided registration to evade tax. This penalty doesn’t apply if taxable sales averaged $1,000 or less per month.
The 40 percent and 50 percent penalties are where businesses get into real trouble. Collecting sales tax from customers and keeping it is treated as something close to theft of government funds, and the CDTFA pursues those cases aggressively.16California Department of Tax and Fee Administration. Interest, Penalties, and Collection Cost Recovery Fee