With a combined state, county and city sales tax rate reaching 9.5%, Los Angeles has one of the highest sales tax burdens in the United States. However, sales tax applies differently across the massive, diverse Los Angeles area based on the district and city. Understanding exactly when, where and how much sales tax is owed in LA can be confusing but is critical for retailers. This in-depth guide covers Los Angeles Sales Tax Calculator everything businesses need to know to comply with Los Angeles sales tax laws.
Los Angeles Sales Tax Calculator
The Los Angeles sales tax calculator is an automated tool that calculates the sales tax due for purchases made in Los Angeles County and Orange County. To use the calculator, you simply select the city where the purchase is being made from a dropdown menu, then enter the pre-tax purchase price. The calculator will automatically look up the sales tax rate for that location and compute the sales tax owed by multiplying the tax rate by the purchase price.
Loss Angeles Sales Tax Calculator
Los Angeles Sales Tax Calculator
The total cost including tax is then displayed. This tool eliminates the need to manually look up tax rates and calculate sales tax, making it quick and easy to determine the final cost of a purchase in LA or Orange County. The calculator ensures accuracy and compliance with the various sales tax jurisdictions across Los Angeles.
An Overview of Los Angeles Sales Tax
Los Angeles sales tax consists of three components that combine to reach a total rate up to 9.5%:
- 7.25% California state sales tax
- 1.25% Los Angeles County tax
- Up to 1% additional city taxes
Key facts about los angeles sales tax:
- Taxable sales include retail goods, food, rentals and more
- Prescription medicine is exempt from CA sales tax
- Different rates apply within LA metro area cities
- Special district taxes boost rates on lodging, transportation, etc
- Sales tax filing is quarterly for most businesses
With varied rates across LA, identifying the precise sales tax rate to collect at each business location is critical.
Do I Need to Collect Los Angeles Sales Tax?
If your business sells taxable goods or services within the borders of Los Angeles, you must register to collect and remit applicable sales taxes. This includes:
In-State Brick & Mortar Stores
LA retailers with physical storefronts must collect CA state, LA county and local city sales taxes on taxable transactions based on store location.
Remote Sellers
Out-of-state retailers also have nexus for Los Angeles sales tax if they exceed CA economic thresholds, including:
- $500,000+ in annual California sales
- 200+ separate transactions with CA customers
- Inventory stored in CA fulfillment centers
- Utilizing CA affiliates for sales referrals
Remote sellers meeting any of these standards must collect and remit Los Angeles sales tax.
Marketplace Sellers
Third-party sellers on platforms like Amazon, eBay and Etsy may also have LA sales tax obligations if the marketplace handles payments, fulfillment or delivery.
No Physical or Economic Nexus
If your business has no presence in California, you likely don’t need to collect Los Angeles sales tax. However, you may still need to provide buyers with a tax invoice they can use to pay use tax.
What Transactions are Taxable in Los Angeles?
California broadly taxes retail sales of tangible goods along with many services. Major Los Angeles taxable sales include:
- All retail goods (electronics, apparel, furniture, etc)
- Prepared food, restaurant meals, catering
- Hotel rooms and other short-term lodging rentals
- Vehicle purchases, rentals and leases
- Sporting/concert admissions and tickets
- Gas, electric, telecom utility bills
Some exemptions include grocery food, prescription medicine, and manufacturing equipment. See CDTFA’s taxable sales list.
Los Angeles Sales Tax Rates
Within the Los Angeles area, sales tax rates range from 9% to 9.5%:
- Los Angeles (Los Angeles): 9.5% total rate
- Beverly Hills: 9.5% total rate
- Santa Monica: 9.5% total rate
- Glendale: 9.5% total rate
- Pasadena: 9.5% total rate
- Long Beach: 9.25% total rate
- Burbank: 9.25% total rate
The base 7.25% CA state sales tax applies for all. The county tax is 1.25%. City rates up to 1% are added.
Special taxes boost lodging, dining, transport and more. For example:
- 14% transient occupancy tax is added to hotel rooms in LA city
- 10% cannabis tax is added to recreational marijuana
- Up to 30% ticket charge added to sporting/concert events
Use CDTFA’s ZIP Code Lookup Tool to find exact rates.
Registering for a Los Angeles Seller’s Permit
Retailers that meet the sales tax nexus thresholds must register for a California Seller’s Permit with the CDTFA. This allows you to legally collect and report Los Angeles sales tax.
You can register for your seller’s permit online via the CDTFA website. You will need to provide business identification details and info on your sales activities in California.
Keep your seller’s permit certificate on hand at your business locations as proof of registration. You must also display the California Sales Tax poster at your point-of-sale.
Filing Los Angeles Sales Tax Returns
Most retailers will file Los Angeles (and all California) sales tax returns on a quarterly basis using CDTFA’s CA Form BOE-401-A. Sales tax payments are also due quarterly.
Exact due dates for quarterly sales tax filings are:
- Q1 (January – March): Due April 30
- Q2 (April – June): Due July 31
- Q3 (July – September): Due October 31
- Q4 (October – December): Due January 31
Filings should detail total taxable sales, location taxes collected, allowable deductions, and taxes due. You can submit returns and payments via mail or online through CDTFA system.
Claiming Los Angeles Sales Tax Exemptions
Some customers and sales transactions are exempt from paying Los Angeles sales tax. You must obtain documentation to support any exemptions:
- Resale certificates – for buyers purchasing inventory/components for resale
- Nonprofit exemptions – for purchases by valid 501(c)(3) charities
- Interstate commerce – for goods substantively shipped out of California
- Manufacturing exemptions – for equipment used predominantly in manufacturing
Never exempt any sales without first securing the proper certificates.
Use Tax on Out-of-State Purchases
California charges use tax on items purchased sales tax-free outside Los Angeles and stored or used within the city. Use tax offsets revenue lost to cross-border shopping.
Use tax mirrors the sales tax rates. Consumers must report use tax on their California tax return based on all out-of-state purchases. Businesses pay use tax on merchandize brought into LA on their sales tax returns.
Keeping detailed records of external purchases makes use tax filing easier.
Other Los Angeles Taxes on Food, Lodging & More
On top of standard Los Angeles sales tax, some industries face additional city and county levies:
- Cannabis – Growers face excise tax up to $161 per pound. Dispensaries charge 10% recreational cannabis tax.
- Lodging – 14% transient occupancy tax added to LA hotel rooms along with additional district occupancy taxes.
- Parking – 18% parking occupancy tax added to parking fees in commercial lots.
- Car rentals – Up to 10% local tax can be added by LA area jurisdictions.
Ensure you collect and remit all state, county and city taxes relevant to your business activities.
Getting Help with Los Angeles Sales Taxes
- Consult the CDTFA Los Angeles District Office for support.
- Review Los Angeles sales tax info in the CDTFA Tax Guide for LA County.
- Watch CDTFA online seminars on recent sales tax updates and best practices.
- Use CDTFA’s online registration and filing system for easy compliance.
- Partner with an accountant or sales tax software provider for automated filing services.
With varied local district rates, Los Angeles sales tax rules can quickly get complicated. Automating filings through a service provider reduces headaches and avoids costly mistakes.
Frequently Asked Los Angeles Sales Tax Questions
1. What is the sales tax rate in Los Angeles?
Total Los Angeles sales tax rates range from 9% to 9.5% combined state, county and city taxes. The 9.5% applies within the City of Los Angeles.
2. Does Los Angeles tax groceries?
No, grocery food items are exempt from sales tax in Los Angeles and all California. Prepared hot foods are taxed.
3. When do you pay sales tax in Los Angeles?
Most LA retailers file sales tax returns and payments quarterly. Due dates are at the end of April, July, October and January for each calendar quarter.
4. Does Los Angeles collect use tax?
Yes, California charges use tax on items purchased out of state and brought back into LA for storage or use. Use tax mirrors the rates residents would pay locally.
5. How do I register for a seller’s permit in Los Angeles?
You can register online for your California Seller’s Permit which allows you to collect LA sales tax. Apply through the CDTFA online registration system.
6. What are district taxes in Los Angeles?
Special taxes on lodging, sports, meals, transport and more are charged in tourism districts to fund local projects. LA lodging faces a 14% transient occupancy tax.
7. Are services taxed in Los Angeles?
Some services like automobile repairs, golf fees, cable services, laundry and more are subject to Los Angeles sales tax. Professional services are exempt.
The Bottom Line on Los Angeles Sales Tax
Los Angeles sales tax compliance involves managing multiple state, county and city tax jurisdictions. Take time to understand all requirements for your business’s locations and transactions. Automating filings through a tax service can simplify compliance.
