California Sales Tax Hike: Starting April 1, 2025, people in Los Angeles County will pay more sales tax. This happens because of a new law called Measure A. This law helps pay for homes and help for people without homes. The tax rate goes up from 9.5% to 9.75%. Some cities already add their own tax. So, the total tax will be even higher. Some places will have tax over 11%.
Measure A was passed by voters in November 2024 as a replacement for Measure H, the existing quarter-cent sales tax introduced in 2017 to fund homeless services. People voted for Measure A to replace an old tax. This new tax gives more money. The county thinks it will get more than $1 billion each year.
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California Sales Tax Hike: Where Will the Money Go?
The extra tax money will be split two ways:
- Homeless services (60%): This includes mental health care, addiction treatment, and emergency shelters. Cities will receive funds based on their homeless population.
- Affordable housing (40%): Most will go to building low-cost homes, with a small portion for oversight.
This helps build homes people can afford. This law stays forever, unless people vote to change it.
Which Cities Pay More and How Much
The base county tax rises from 9.5% to 9.75%, but many cities already charge extra. Here’s what some areas will pay:
- Lancaster & Palmdale: 10.25% to 11.25% (highest in the county)
- Azusa, Glendora, Irwindale, South El Monte: 10.75%
- Downey: 10.5%
- Manhattan Beach: 10.25%
What’s Taxed and What’s Not
- You’ll pay more on: Clothes, electronics, furniture, and other retail goods.
- No increase on: Groceries (except hot food), prescription medicine, and EBT purchases. Things bought with EBT cards also do not cost more tax. People can check the state website or ask their city to learn more.
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Cities such as Compton, Lynwood, Pico Rivera, Santa Monica, and South Gate, which were not previously affected by Measure H, will now have a new tax burden under Measure A, raising their sales tax to 10.75%. These cities now pay more tax. The state gives out papers to help people know the new tax rates.
“We know every penny counts, but this will help those who need it most,” said a county official. Some business owners worry about higher prices, but others hope better housing and services will strengthen communities.
Stores must update cash registers by April 1. Shoppers may want to check their city’s exact rate before big purchases. The state tax website will have full details.
