Measure A, also known as the “Homelessness Services and Affordable Housing Ordinance,” will take effect on April 1, adding a half-cent sales tax to fund housing efforts for the county’s homeless community. As a result, residents and businesses in Los Angeles County will see their sales tax rate rise from 10.25% to 10.50%.

The last significant sales tax increase in Los Angeles County was in 2017, when voters approved Measure H—a quarter-cent (0.25%) tax to fund homelessness prevention programs. Before that, in 2013, the county saw an increase due to Measure M, a half-cent sales tax to improve public transportation.

Now, Measure A replaces Measure H, leading to a net increase of 0.25% from previous levels. With this latest increase, LA County’s sales tax remains among the highest in the country.

With the new increase, many parts of Los Angeles County will have some of the highest sales tax rates in the U.S. While California’s statewide base sales tax is 7.25% (one of the highest in the country), local jurisdictions can add their own sales taxes on top of that.

For comparison:

California (Los Angeles County) – 10.50% (some cities, like Santa Monica and Long Beach, may be even higher)
Tennessee (Memphis) – 9.75%
Illinois (Chicago) – 10.25%
Washington (Seattle) – 10.25%
Oregon, Montana, New Hampshire, Delaware – 0% (these states have no state or local sales tax)

With this increase, LA County joins Chicago and Seattle as one of the few major metro areas in the U.S. with sales tax rates above 10%.

The sales tax increase will impact all consumers and businesses in LA County, but certain groups will feel the burden more than others:

Low-Income Households – Sales taxes are regressive, meaning they take up a larger percentage of income for low-income individuals. Essentials like clothing, household goods, and even some prepared foods will now cost more.
Small Businesses – Businesses that sell taxable goods may see decreased consumer spending due to higher prices, while also paying more for supplies.
Renters & Homeowners – While Measure A is intended to fund affordable housing programs, it could also lead to slightly higher costs for home goods and services.
Tourists & Visitors – Visitors to LA County will also pay more for taxable goods, potentially making travel-related purchases more expensive.

Residents and businesses are encouraged to review the Special Notice from the California Department of Tax and Fee Administration for detailed information on how the tax rate change will affect them. LA County officials will monitor the impact of Measure A on housing services and local businesses as it rolls out.

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