Studio City is a neighborhood of the City of Los Angeles, so it uses Los Angeles tax rates rather than its own. The headline Studio City tax rates are a 9.50 percent combined sales tax, a Proposition 13 property tax base of 1 percent of assessed value (closer to 1.15 to 1.25 percent once bonds and assessments are added), and a city business tax that runs from $1.01 to $4.25 per $1,000 of gross receipts depending on how the business is classified. California state income tax and federal income tax apply on top of all of that.
Sales Tax at the Register
Every retail purchase of tangible goods in Studio City is taxed at 9.50 percent. California’s statewide base is 7.25 percent, and the remaining 2.25 percent comes from voter-approved Los Angeles County measures, including Measure M and Measure R for regional transportation and Measure H for homelessness services.1California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate Most groceries and prescription medications are exempt, so the 9.50 percent falls mainly on clothing, electronics, furniture, prepared food, and other non-exempt goods.
The California Department of Tax and Fee Administration collects the full amount from retailers and distributes the local shares back to the county and city.2California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates Because local add-ons can change after elections, the CDTFA rate lookup is the right place to confirm the current rate before relying on it.
Use Tax on Out-of-State Purchases
If you buy something online or out of state and the seller does not charge California sales tax, you owe use tax at the same 9.50 percent rate. You can report the exact amount on your California income tax return (Form 540), use the Use Tax Lookup Table on that return for nonbusiness items under $1,000, or pay directly through the CDTFA’s online portal after each purchase.3California Department of Tax and Fee Administration. California Use Tax for Personal Use Vehicles, vessels, and aircraft have separate reporting requirements and cannot be handled on your income tax return.
Property Tax on Studio City Homes
Proposition 13 caps the base property tax rate at 1 percent of assessed value.4Los Angeles County Assessor. Proposition 13 Assessed value is usually the purchase price, and it can rise by no more than 2 percent per year unless there is a change of ownership or new construction.5California State Board of Equalization. Publication 800-10 Information Sheet That rule is why longtime Studio City homeowners often pay far less than new buyers on the same block.
The 1 percent base is only the starting point. The actual bill also carries voter-approved bond debt for school districts, community college improvements, and infrastructure, plus direct assessments for flood control, fire protection, and park maintenance.6Los Angeles County Treasurer and Tax Collector. Adjusted Annual Property Tax Bill Once those stack up, most Studio City homeowners pay an effective rate somewhere between 1.15 and 1.25 percent of assessed value. The annual secured property tax bill from the county lists every line item.
Transfer Tax When Property Changes Hands
Sellers owe a documentary transfer tax when real estate changes hands. For properties selling at or below $5,300,000, the city charges $2.25 per $500 of value (0.45 percent of the sale price), and Los Angeles County adds its own transfer tax, bringing the combined base cost for a typical home sale to a bit under 0.6 percent.7Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ
Measure ULA, approved by Los Angeles voters in 2022, layers on much higher rates at the top of the market. Properties selling above $5,300,000 but below $10,600,000 trigger an additional 4 percent transfer tax, pushing the combined effective rate to roughly 4.45 percent. Sales at $10,600,000 or above face a 5.5 percent ULA rate, bringing the total to about 5.95 percent.7Los Angeles Office of Finance. Real Property Transfer Tax and Measure ULA FAQ Those thresholds adjust annually with inflation. On a $7 million sale, the ULA portion alone is $280,000.
City Business Tax
Every business operating in Studio City must register with the City of Los Angeles Office of Finance and get a Business Tax Registration Certificate. The annual tax is based on the prior year’s gross receipts, though a few activity types are taxed by square footage or number of operating days. Rates run from $1.01 to $4.25 per $1,000 of gross receipts depending on classification.8Los Angeles Office of Finance. Tax Information Booklet
Two categories cover most Studio City businesses: retail sales at $1.27 per $1,000 and professions and occupations at $4.25 per $1,000.9Los Angeles Office of Finance. Know Your Rates A restaurant grossing $800,000 would owe about $1,016 in city business tax, while a consulting firm with the same revenue would owe $3,400. The city can audit and reclassify businesses retroactively, so getting the classification right matters.
Annual renewals are due by February 28.10Los Angeles Office of Finance. Key Points to Remember Businesses with $100,000 or less in total gross receipts (including revenue earned outside Los Angeles) qualify for a small business exemption from the tax itself, but still have to register and file.11Los Angeles Office of Finance. Small Business Exemption FAQ Missing the deadline triggers late fees; operating with no certificate at all adds penalties on top of the back taxes.
Short-Term Rental Tax
Anyone renting a room, apartment, or home to guests for 30 consecutive days or less in Studio City must collect a 14 percent transient occupancy tax on the rent charged.12Los Angeles Office of Finance. Transient Occupancy Tax Requirements This covers hotels, motels, and short-term rental hosts alike. The operator adds the 14 percent to the guest’s bill and remits it to the city.13City of Los Angeles. Los Angeles Municipal Code Sec. 21.7.3 and 21.7.7
If an operator fails to collect the tax, the unpaid amount becomes a personal debt owed by the operator to the city. Hosts using platforms like Airbnb should confirm whether the platform handles TOT remittance; if it does not, the host is fully liable.
California State Income Tax
California personal income tax applies to Studio City residents on top of federal tax. The state uses nine brackets, starting at 1 percent on the first $11,079 of taxable income for a single filer and topping out at 12.3 percent on income above $742,953. Married couples filing jointly reach the top rate on income above $1,485,906.14California Franchise Tax Board. 2025 California Tax Rate Schedules An additional 1 percent mental health services surcharge on taxable income over $1 million brings the real top rate to 13.3 percent, the highest in the country.
For most middle-income earners in Studio City, the effective California rate works out to between 4 and 8 percent after the graduated brackets are applied. California’s standard deduction is much smaller than the federal one, which pushes more filers to itemize at the state level. The brackets are indexed for inflation, so thresholds shift slightly each year.
Federal Income Tax
Federal income tax applies to Studio City residents the same way it applies everywhere else, but the interaction with California’s high state tax is what makes the combined picture steep. For 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.15Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 The seven federal brackets for 2026 are:
- 10%: up to $12,400 single / $24,800 joint
- 12%: $12,401 to $50,400 single / $24,801 to $100,800 joint
- 22%: $50,401 to $105,700 single / $100,801 to $211,400 joint
- 24%: $105,701 to $201,775 single / $211,401 to $403,550 joint
- 32%: $201,776 to $256,225 single / $403,551 to $512,450 joint
- 35%: $256,226 to $640,600 single / $512,451 to $768,700 joint
- 37%: above $640,600 single / above $768,700 joint
Stack California’s 13.3 percent top rate on the federal 37 percent and a high-earning Studio City resident can face a combined marginal rate above 50 percent on the last dollars earned.15Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 The SALT deduction, capped at $40,000 beginning in 2025 under the One Big Beautiful Bill Act with 1 percent annual increases through 2029 ($20,000 for married filing separately), offsets part of that but does not cover the full state tax bill at higher incomes.