California’s Sales Tax Hike in One County Starts April 2025 As the sales tax hike begins on April 1, 2025, Los Angeles County residents and businesses will be levied with “Measure A,” which is another form of tax that is expected to provide services to rectify homelessness and financial support for affordable housing plans. This new
Sales Tax Hike
“Measure A” was endorsed by voters in November in the year 2024. The purpose of “Measure A” is to replace with “Measure H” adopted in 2017, which was rather a 0.25% sales tax to assist homeless people. Now, the “Measure A” tax has been increased to 0.5%, which would mean shoppers across the county will now have to pay an additional 0.25% sales tax.
This tax is going to be used for what?
The sales tax will generate almost $1 billion every year, which will directly support the following areas:
| Category | Distribution Percentage | Details |
|---|---|---|
| Services for Homeless | 60% | – Mental health and addiction recovery programs – 15% allocated to cities based on homeless population – 1.65% reserved for pilot programs |
| Affordable Housing Initiatives | 40% | – LA County Affordable Housing Solutions Agency: 35.75% – Funding for Housing Authority operations |
The most important characteristic of “Measure A” is that it remains enforceable until voters repeal it. Therefore a “Measure H” had an expiration date by which it would no longer be offensive. This new tax has no expiration date.
Which areas will this affect?
The base sales tax of Los Angeles County will rise from 9.5% to 9.75%. However, some of the cities already have local sales taxes; thus, the increase will be considerably more.
Areas with the hottest 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% |
To get the actual tax rate that will be applicable in your area, you can contact the California Department of Tax and Fee Administration.
What items will be taxed at the new rate?
The new rate will apply to most consumer goods, from clothing to electronics to furniture. There are, however, some essential items that will not be taxed:
- Nonprocessed food (such as groceries)
- Prescription drugs
- Medical devices
- Purchases made with EBT (Electronic Benefit Transfer)
If you would like to determine whether a particular product is taxable, you could check out the official CDTFA website or call your local government office.
Conclusion
The rate for that new sales tax, “Measure A,” would probably go as high as 11% in some areas of Los Angeles County from April 2025. This new tax has been introduced with the aim of aiding support services and homelessness-related plans for affordable housing. But there will be a fairly significant direct impact on the average citizen and business.
If you live in Los Angeles County or do business in it, you need to know about this new tax and shape your financial decisions accordingly.
FAQs
Q1. When does the new sales tax increase take effect?
A. The sales tax hike in Los Angeles County will go into effect on April 1, 2025.
Q2. Why is the sales tax increasing?
A. The increase is due to Measure A, a voter-approved tax intended to provide funding for homelessness services and affordable housing initiatives in the county.
Q3. How much is the tax increase?
A. Measure A raises the countywide sales tax by 0.25%, bringing the total tax rate to 9.75% in most areas. Some cities with additional local sales taxes will see rates exceed 11%.
Q4. Will this tax ever expire?
A. Unlike Measure H, which had a set expiration date, Measure A has no end date. It will remain in place until repealed by voters.
Q5. How can I check the new tax rates in my area?
A. Residents and business owners can visit the California Department of Tax and Fee Administration (CDTFA) website to check updated tax rates.