Starting April 1, 2025, shoppers and businesses in Los Angeles County will see a sales tax increase as Measure A takes effect. This new tax is designed to generate additional funding for homelessness services and affordable housing but will also push tax rates in some areas above 11%, placing them among the highest in California.
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Sales Tax Increasing
Measure A, approved by voters in November 2024, replaces the previous Measure H—a quarter-cent sales tax passed in 2017 to address homelessness. Instead of a 0.25% tax, Measure A increases it to 0.50%, adding an extra 0.25% to taxable purchases countywide.
Where Will the Money Go?
The estimated $1 billion per year generated by the tax will be allocated as follows:
| Category | Allocation |
|---|---|
| Homelessness Services | 60% |
| – Mental health & substance use programs | – |
| – 15% distributed to cities based on unhoused population | – |
| – 1.65% for pilot programs | – |
| Affordable Housing Initiatives | 40% |
| – LA County Affordable Housing Solutions Agency | 35.75% |
| – Housing authority operations | – |
Unlike Measure H, Measure A has no expiration date and will remain in place unless repealed by voters in the future.
Affected
The base rate in Los Angeles County will increase from 9.5% to 9.75%, but cities with additional local sales taxes will experience even higher rates.
Highest Sales Tax Rates
| City | New Sales Tax Rate |
|---|---|
| Lancaster, Palmdale | 11.25% |
| Azusa, Glendora, Irwindale, South El Monte | 10.75% |
| Downey | 10.50% |
| Manhattan Beach | 10.25% |
| Compton, Lynwood, Pico Rivera, Santa Monica, South Gate | 10.75% |
For the most up-to-date rates in your area, residents and business owners can check with the California Department of Tax and Fee Administration (CDTFA).
Taxable
Most consumer goods, including clothing, electronics, and furniture, will be taxed at the new rate. However, some essential items remain exempt, including:
- Unprepared food (e.g., groceries)
- Prescription medications
- Medical devices
- EBT purchases
If you’re unsure whether a product is taxable, visit the CDTFA website or contact your local government office for clarification.
FAQs
When does the new tax rate take effect?
The new Measure A sales tax begins on April 1, 2025.
How much will the sales tax increase?
The tax will rise by 0.25%, bringing the base rate to 9.75%.
Which cities will have the highest tax rates?
Lancaster and Palmdale will see rates rise to 11.25%.
What will Measure A funds be used for?
60% will fund homelessness services, and 40% will support affordable housing.
Are any purchases exempt from the tax increase?
Yes, unprepared food, prescription medications, and EBT purchases remain untaxed.
