Los Angeles County is set to increase its sales tax from 9.75% to 10.25%, putting it among the highest rates in the country. This decision follows the passage of Measure ER, which voters approved earlier in the summer.
The sales tax hike took effect on Thursday after being approved on June 2nd. With this change, Los Angeles finds itself competing with Cook County, Illinois, where the general merchandise sales tax fluctuates between 9% and 11.5%.
County officials assert that the additional revenue will support healthcare services, including hospitals, clinics, and public health initiatives, as stated by the Los Angeles County Department of Public Health.
This tax increase is expected to last for only five years. Notably, necessities such as groceries, prescription medications, and some medical equipment will not be subject to the new tax rate.
In certain cities—like Pasadena, Santa Monica, and West Hollywood—residents might encounter total sales tax rates of 11% or more.
However, many locals are expressing concerns about the timing of the tax increase, especially in a region already known for its high living costs.
“I’m feeling it across the board, from groceries to everything in between,” reported one resident.
Others have remarked on how much harder it has become to afford living in the area compared to a decade ago.
“No one can really start here anymore,” another resident shared. “It’s definitely not affordable anymore, especially if you’re starting out.”
Tonantzin Carmona, an economic policy director at The Century Foundation, has highlighted the challenges Californians face when it comes to making ends meet compared to families in other states.
“Housing in California was already extraordinarily expensive, but now mortgage rates are above 7%,” Carmona noted. “When you look at gas prices, the national average is around $4, but in California, it’s over $6.”
