Los Angeles sales tax: rates and what to book

Short answer: The sales tax rate in the City of Los Angeles is 10.25 percent from October 1, 2026, up from 9.75 percent. That 10.25 percent is the LA County countywide rate, and many cities in the county add their own district tax on top, so rates run up to 11.75 percent. The rate you charge depends on where the sale happens or where the item is delivered.

What changed on October 1, 2026

CDTFA, the state agency that runs sales tax, raised the Los Angeles County countywide rate from 9.75 percent to 10.25 percent on October 1, 2026. That rate applies in unincorporated LA County and in every city in the county that has no district tax of its own. The City of Los Angeles is one of those cities, so its rate is 10.25 percent.

Most cities in the county that already had their own district tax went up by the same half point or more. A sale on September 30 and a sale on October 1 at the same register can carry different rates. Your books need to keep the two apart.

Rates in a few LA County cities

The statewide base rate is 7.25 percent. Everything above that is district tax, set by voters in the county or the city. These are CDTFA's published rates from October 1, 2026.

Rates change. Check the address in CDTFA's rate lookup before you set up a new location or a new tax code.

Which rate applies to a sale

For a sale at your counter, you charge the rate where your shop is. A cafe in Santa Monica charges 11.25 percent. A cafe in Silver Lake charges 10.25 percent.

Delivered sales are less simple. The 7.25 percent state rate always applies. A district tax at the delivery address applies when you are engaged in business in that district. CDTFA says you are engaged in business there if you have a place of business in the district, deliver with your own vehicle, or have total California sales over $500,000 in the current or prior year. Ask your CPA to confirm which rule fits you before you set up rates by ZIP code.

What to update after a rate change

1. Check the POS Ring a test sale in Square, Toast, Clover or Shopify POS and confirm the receipt shows the new rate.
2. Check invoicing and the online store Open a draft invoice for an LA address. Check the tax line before you send any real invoices.
3. Check QuickBooks or Xero Look at the tax rates and tax codes in your file. Confirm each location uses the rate in effect on the invoice date.
4. Split the quarter If a return period crosses October 1, keep sales before and after that date separate, so each part is taxed at the right rate.

Seller's permit and filing frequency

You need a seller's permit from CDTFA if you are engaged in business in California and sell or lease goods that would normally be taxable at retail. CDTFA says the permit is free, but it can ask for a security deposit in some cases.

CDTFA assigns your filing frequency when you register, based on the tax you report or the sales you expect. The options are quarterly, quarterly prepay, monthly, fiscal yearly and yearly. You must file by the due date even in a period with no sales. Quarterly returns are due April 30, July 31, October 31 and January 31.

The sales tax payable account

Sales tax you collect is not income. It belongs to the state from the moment the customer pays it. In your books, it should go to a liability account, usually called Sales Tax Payable, and the payment to CDTFA should clear that account.

Each period, compare three numbers: the tax your POS or store reports as collected, the tax on your return, and the balance in Sales Tax Payable. They should agree. When they do not, the usual causes are refunds not recorded in both places, processor deposits booked net with the tax mixed in, or a payment posted to an expense account.

Marketplace sales

Since October 1, 2019, a marketplace facilitator such as Amazon or Etsy is generally the retailer for sales it handles and collects and pays the tax. If you hold a seller's permit, CDTFA says you still report your total sales, including marketplace sales, and then deduct the facilitated sales as "other" on the return. Your books need marketplace sales in their own income account so that deduction is easy to support.

Use tax on out-of-state purchases

If you buy equipment or supplies from an out-of-state seller that does not charge California tax, you generally owe use tax. The sales and use tax rates are the same. CDTFA tells businesses to base the rate on where the item is first used. Seller's permit holders report it on the sales and use tax return, on the line for purchases subject to use tax.

In the books, tag those purchases when they come through the bank feed, so the amount is ready when the return is due.

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