The Los Angeles sales tax rate is 9.75 percent as of early 2026, charged on most purchases of physical goods made within city limits.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That total combines California’s 7.25 percent statewide base with 2.50 percent in county and city district taxes that fund transit, homelessness services, and local infrastructure.2California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate Groceries, prescription medications, and most professional services are not taxed.
How the Rate Is Built
The 7.25 percent statewide portion is itself a stack of components. Roughly 6 percent flows to state funds covering general operations, public safety, and health and social services. The other 1.25 percent goes directly to city and county governments for transportation and general operations.2California Department of Tax and Fee Administration. Detailed Description of the Sales and Use Tax Rate
On top of that, Los Angeles layers 2.50 percent in district taxes.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates Several of the largest pieces trace to voter-approved county measures:
- Measure R (2008), a half-cent tax for rail and bus rapid transit, carpool lanes, highway improvements, and local transportation.3LA Metro. Measure R
- Measure M (2016), another half-cent for traffic relief, street and sidewalk repairs, expanded transit, and bridge seismic retrofitting.4LA Metro. Measure M
- Measure H (2017), a quarter-cent tax dedicated to homelessness services and prevention.5California Department of Tax and Fee Administration. LA County Sales Tax for Homeless Services Takes Effect October
Those three alone account for 1.25 percent, with additional county and city district taxes making up the rest. Rates shift as new voter measures take effect or old ones expire. The CDTFA publishes upcoming changes before each effective date; several cities in Los Angeles County are adjusting on April 1, 2026, though the City of Los Angeles rate is not among them.6California Department of Tax and Fee Administration. Explanation of Tax Rate Changes
Rates vary sharply by city within LA County, running from 9.75 percent up to 11.25 percent, so crossing a city line can change what you pay.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates For any specific address, the CDTFA has an online rate lookup tool.7California Department of Tax and Fee Administration. Know Your Sales and Use Tax Rate
What You Pay Tax On
Sales tax applies to tangible personal property, which California defines as anything that can be seen, weighed, measured, felt, or touched.8California Department of Tax and Fee Administration. California Revenue and Taxation Code 6016 – Tangible Personal Property That covers clothing, electronics, furniture, vehicles, and digital goods sold on physical media. If you can hold it in your hands, it’s almost certainly taxable.
Labor charges tied to making a physical product are taxable too. When a retailer charges for fabricating or assembling a product as part of a sale, that labor gets taxed whether or not it’s listed separately on the receipt.9California Department of Tax and Fee Administration. Taxable Labor – Publication 108 – Section: Fabrication Labor Is Taxable A custom furniture maker owes tax on both the materials and the build labor for your bookshelf.
Delivery charges follow their own rule. Handling is always taxable. For shipping, if the seller doesn’t keep records showing the actual cost of each delivery, the whole delivery charge gets taxed along with the sale.10California Department of Tax and Fee Administration. Shipping and Delivery Charges – Publication 100 Expect delivery fees on taxable goods to carry tax unless the invoice specifically breaks out actual shipping cost.
What You Don’t Pay Tax On
Most groceries are exempt. Food products meant for home preparation, including produce, meat, dairy, bread, and canned goods, are not taxed. The exemption falls away once food is sold heated, served as a meal, or eaten at the seller’s location. The rotisserie chicken from the deli case is taxable; the raw chicken next to it is not. Hot bakery items and hot coffee sold for a separate price are a narrow exception and keep the exemption even though they’re heated.11California Department of Tax and Fee Administration. Common Sales and Use Tax Nontaxable Sales and Partial Exemptions – Section: Food Products
Prescription medications dispensed by a pharmacist on a physician’s, dentist’s, or podiatrist’s order are exempt.12California Department of Tax and Fee Administration. Drug Stores – Section: Sales of Medicines Medical Supplies and Medical Appliances Over-the-counter drugs are generally taxable. The exemption turns on the prescription requirement, not on whether something qualifies as medicine.
Professional services sit outside the sales tax system. Hiring a lawyer, accountant, or consultant means paying for expertise rather than a product, and California treats these providers as the consumers of any paper or supplies they use in their work. The legal test asks whether the “true object” of the transaction is the service or a physical item. An accountant preparing your taxes sells a service; a printer producing 500 business cards sells a product.13California Department of Tax and Fee Administration. Sales and Use Tax Regulations – Article 1 Service Enterprises
Online Orders and Out-of-State Purchases
When you buy something from a retailer that doesn’t collect California sales tax, whether from an out-of-state online seller or during travel, you owe an equivalent amount called use tax. The rate matches your local sales tax rate, which for Los Angeles residents is 9.75 percent.14California Department of Tax and Fee Administration. Resources for California Use Tax
In practice, most large online retailers already calculate and collect the right amount at checkout. California requires out-of-state sellers to collect once their total sales of tangible goods delivered into the state exceed $500,000 in the current or prior calendar year, and marketplace platforms like Amazon and eBay collect on behalf of their third-party sellers.15California Department of Tax and Fee Administration. California Revenue and Taxation Code 6203 Use tax mainly catches purchases from smaller independent sellers below the threshold.
You report use tax on your California income tax return. The return includes a lookup table that estimates the amount based on your adjusted gross income, which works for most people making small untaxed purchases through the year. For any single item costing $1,000 or more, you must use the detailed worksheet and report the actual purchase price.14California Department of Tax and Fee Administration. Resources for California Use Tax
Vehicles, boats, and aircraft work differently. Use tax on those gets paid through the DMV at registration rather than on the income tax return.14California Department of Tax and Fee Administration. Resources for California Use Tax If you personally hand-carry items back from a foreign country, the first $800 in purchases within any 30-day period is exempt from use tax.
Getting a Refund for Overpaid Sales Tax
If sales tax was overpaid, whether through a seller’s error, a returned item, or a miscalculated rate, you can file a claim with the CDTFA using Form CDTFA-101. Claims can be submitted online through the CDTFA portal, by mail, or in person at any CDTFA office.16California Department of Tax and Fee Administration. Claim for Refund or Credit The claim must identify the time period, explain the basis for the overpayment, and include supporting documentation.
The deadline is strict. Claims must be filed within three years of the close of the reporting period in which the overpayment happened, or within six months of the date a tax determination becomes final, whichever is later.17California Department of Tax and Fee Administration. California Revenue and Taxation Code 6902 – Claim Limitation Period Miss the window and the CDTFA cannot approve a refund regardless of how clear the overpayment is.