Los Angeles Sales Tax Guide 2025 (California)

Navigating sales tax compliance and obtaining a business license in Los Angeles, California, can be challenging for businesses of all sizes. Understanding the local regulations, tax rates, economic nexus thresholds, lease revenue bonds, filing requirements, and knowing the delinquency date is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses, helping you focus on growth without the headache of managing complex tax rules. In this guide, we’ll break down everything you need to know about sales tax in Los Angeles for 2025.

Los Angeles Sales Tax Rate (California)

As of January 1, 2025, the sales tax rate in Los Angeles, California, is 9.5%. This rate includes state, county, and local taxes, which can impact funding for projects through mechanisms like lease revenue bonds. The Los Angeles Office of Finance's sales and use tax unit ensures the proper allocation of sales tax receipts to the city.

Jurisdiction	Sales tax rate
State Tax	6.00%
County Tax	0.25%
City Tax	1.00%
Special Tax	3.25%
Combined Tax	10.25%

(Note: Sales tax rates are subject to change. Check the California Department of Revenue’s website for the latest updates.)

Sales Tax Calculator Los Angeles (California)

Imagine you’re a business owner in Los Angeles selling a custom bicycle for $2,000. You need to determine the sales tax amount and the total price the customer must pay.

Step 1: Identify the Sales Tax Rate

As of 2025, the sales tax rate in Los Angeles, CA, is 9.5%. This includes the state base tax and additional county and city sales taxes.

Step 2: Convert the Tax Rate into Decimal Form

To use the percentage in a calculation, convert 9.5% into decimal form:

9.5% = 9.5 ÷ 100 = 0.095

Step 3: Calculate the Sales Tax

Multiply the item price by the sales tax rate:

2,000 × 0.095 = 190

So, the sales tax on the bicycle is $190.

Step 4: Calculate the Total Amount Due

To find the final price, add the sales tax to the original price:

2,000 + 190 = 2,190

Final Answer:

The total price the customer pays is $2,190.

What If a Different Tax Rate Applies?

If a business operates in a special district with a different tax rate (e.g., 10.25% instead of 9.5%), the same formula applies, just using the adjusted tax rate.

FAQ on Sales Tax in Los Angeles CA

What is the Sales Tax for Los Angeles California​?

As of January 1, 2025, the total sales tax rate in Los Angeles, California, is 9.5%. This rate is a combination of the state base tax and additional local taxes.

How Much is Sales Tax in Los Angeles CA?

In Los Angeles, the sales tax rate is 9.5%. This means that for a taxable purchase of $100, an additional $9.50 is added as sales tax, bringing the total to $109.50.

What is the Sales Tax Rate in Los Angeles California?

The sales tax rate in Los Angeles is 9.5%. This rate includes the California state sales tax of 6.0%, a Los Angeles County sales tax of 0.25%, and additional special district taxes totaling 3.25%.

What is LA City Sales Tax?

The City of Los Angeles itself does not impose an additional city sales tax beyond the combined state and county rates. Therefore, the total sales tax rate for transactions within the city limits remains at 9.5%.

How to Calculate Sales Tax in Los Angeles​?

To calculate the sales tax for a purchase in Los Angeles:

1. Determine the purchase price of the taxable item or service.
2. Multiply the purchase price by the sales tax rate (0.095).

For a $200 item:

Sales Tax = $200 × 0.095 = $19

How do I Calculate Sales Tax in Los Angeles?

Calculating sales tax in Los Angeles involves multiplying the cost of the taxable item or service by the current sales tax rate of 9.5%.

For instance, on a $50 purchase:

Sales Tax = $50 × 0.095 = $4.75

The total cost to the customer would be $50 + $4.75 = $54.75.

Los Angeles Sales Tax Exemption

Certain items and entities are exempt from sales tax in Los Angeles. For example, sales of certain food products for human consumption are generally exempt. Additionally, nonprofit organizations may qualify for exemptions under specific conditions. You can consult our blog on Los Angeles sales tax exemptions or the California Department of Tax and Fee Administration for more detailed information.

FAQ on Sales Tax Exemption in Los Angeles CA

Is There Sales Tax on Clothes in LA?

Yes, clothing purchases in Los Angeles are subject to the standard sales tax rate of 9.5%. Unlike some states that exempt clothing from sales tax, California taxes most tangible personal property, including apparel.

What is the Local Retail Sales Tax in Los Angeles?

The local component of the sales tax in Los Angeles includes a 0.25% Los Angeles County sales tax and additional special district taxes totaling 3.25%, combined with the state rate to total 9.5%.

What is the Retail Sales tax in Los Angeles County?

Los Angeles County imposes a sales tax rate of 9.5%. This rate applies uniformly across the county, including the City of Los Angeles, and funds generated from lease revenue bonds contribute to local infrastructure projects.

What is the Los Angeles Sales Tax on SaaS?

In California, the taxability of Software as a Service (SaaS) can be complex. Generally, SaaS is not considered taxable because it is viewed as a service rather than the sale of tangible personal property. However, specific circumstances can vary. For more detailed information on sales tax rates and regulations, you can refer to the this blog on the Los Angeles sales tax on SaaS.

What is the Los Angeles Sales Tax Clothing?

Purchases of clothing in Los Angeles are subject to the standard sales tax rate of 9.5%, contributing to the city's emergency resources and funding through lease revenue bonds. This applies to all types of apparel sold within the city and county. For more detailed information on sales tax rates and regulations, you can refer to the this blog on the Los Angeles sales tax on clothing.

Los Angeles Sales Tax Filing Steps