LA County raises sales tax to 10.25% as cost of living spikes
Effective Oct. 1, Los Angeles County increased its sales tax from 9.75% to 10.25% after voters approved Measure ER, making it the nation’s highest rate.
Following a June vote, Los Angeles County implemented a sales-tax increase on Oct. 1, raising the rate from 9.75% to 10.25% under Measure ER, now the highest in the United States. The additional revenue will flow into the county’s general fund to finance health-care services, safety-net providers and public-health initiatives overseen by the LA County Department of Public Health. In affluent neighboring cities like Santa Monica, Pasadena and West Hollywood, the combined local and county rates will approach or exceed 11%, prompting shoppers to notice higher costs on groceries and other items.
While essential items such as food, prescription drugs and certain medical equipment are exempt, many residents say the hike adds to an already steep cost of living. Experts note that the tax hike coincides with broader economic pressures, including high housing costs and rising gasoline prices in California. The measure is projected to stay in effect for five years.
Why it matters
The tax hike raises everyday costs for millions of residents while funding critical health and safety services.
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