LA County Sales Tax Rate Increase Goes Into Effect April 1

Starting April 1, residents and businesses in Los Angeles County will see an increase in the sales tax rate, moving from 10.25% to 10.50%. This change comes as a result of Measure A, a countywide tax increase that was approved by voters in November 2024. Here’s everything you need to know about this adjustment.

The Details: What’s Changing?

The sales tax increase is a direct result of Measure A, also known as the Los Angeles County Homelessness Services and Affordable Housing Ordinance. This measure imposes an additional one-half percent (0.50%) sales tax on every dollar of goods sold in Los Angeles County. This increase is aimed at addressing some of the most pressing issues facing the area, including homelessness and the lack of affordable housing.

Measure A repeals the previous Measure H tax, which was originally introduced to fund services for homeless populations. The new tax will result in a net increase of one-quarter percent (0.25%) on all taxable sales across LA County.

Why This Matters

For both consumers and businesses, the higher sales tax will affect the cost of goods and services. Businesses operating in LA County will need to adjust their pricing and accounting systems to reflect this new rate, while consumers will notice a slight increase in the price of everything from groceries to electronics.

What Will the Revenue Be Used For?

The additional revenue generated by Measure A is intended to fund a variety of critical social services. The primary focus of this initiative is to help combat homelessness, providing support for rental assistance, homeownership programs, and services for vulnerable populations. This includes funding for mental health and addiction treatment, which are essential for addressing some of the root causes of homelessness.

The broader goal is to create long-term solutions that provide affordable housing and supportive services for individuals facing homelessness, ultimately benefiting the entire community.

What You Need to Do

Residents and businesses should take note of the new tax rate starting April 1. The California Department of Tax and Fee Administration (CDTFA) has issued a Special Notice that provides detailed information on the changes, and it’s recommended that both individuals and businesses familiarize themselves with this information to avoid any confusion or issues when paying or collecting taxes.

Businesses, in particular, will need to ensure they are applying the correct sales tax rate and updating their systems accordingly. The CDTFA’s Special Notice includes guidance on how businesses can comply with the new tax regulations.

The Bigger Picture: What’s Next?

While this tax increase will have a tangible impact on the cost of living and doing business in LA County, the long-term goal is to create sustainable change in the region. By addressing issues like homelessness and affordable housing, Measure A is part of a broader effort to improve the quality of life for residents in LA County.

As the county implements Measure A, officials will continue to monitor its effects on local services and funding. The additional revenue will play a crucial role in helping to address critical social issues, and the community will be able to see the impact of these changes in the years to come.

The increase in LA County’s sales tax is a significant change, but it’s part of a larger, community-focused initiative aimed at solving some of the county’s most challenging issues. Whether you’re a resident or a business owner, it’s important to be aware of this change starting April 1 and take the necessary steps to adjust to the new tax rate.

For further details, residents and businesses are encouraged to review the Special Notice issued by the California Department of Tax and Fee Administration.