Credit card processing and merchant services in Los Angeles, CA
Los Angeles merchants started charging 10.25% sales tax on October 1, 2026. Update every terminal and checkout, then check what your card processing really costs.
If a register in Los Angeles still charges 9.75%, it has been under-collecting since October 1, 2026. Measure ER, approved by voters on June 2, added a 0.5% countywide tax, and CDTFA now lists the city of Los Angeles at 10.25%. On $40,000 a month in taxable sales, that half point is $200 a month you didn't collect but still owe.
Don't stop at your main terminal. Many cities in the county already had district taxes of their own, so they now sit above the city: Long Beach, Pasadena and Glendale are at 11%, Santa Monica and Culver City at 11.25%, and Lancaster and Palmdale at 11.75%. A caterer or food truck selling across the county may need a different rate in each city, and CDTFA's lookup by address is the quickest way to check.
The Census Bureau's 2022 Economic Census counted about $81.4 billion in retail sales and $17.4 billion in accommodation and food services sales in the city of Los Angeles. At those volumes, a few tenths of a percent in processing costs adds up quickly.
Surcharging is allowed in practice, with conditions. California's 1985 ban is still in the Civil Code, yet the Attorney General generally treats the 2018 Italian Colors ruling as covering merchants in the same position as the plaintiffs, and misleading prices remain illegal. If you take only cards, SB 478 makes the card fee part of the price you advertise.
We'd start with your statement. A free statement review shows your effective rate, and our restaurant and retail pages explain how interchange-plus pricing works for those businesses.
Rules that matter in Los Angeles
Measure ER sales tax increase
Measure ER, approved by voters in the June 2, 2026 election, added a new 0.5% countywide tax in Los Angeles County. CDTFA lists the city of Los Angeles at 10.25% from October 1, 2026, up from 9.75%. Every city in the county picked up the same half point, and a few added city taxes of their own at the same time, so check each address you sell from.
Sources: CDTFA, Explanation of tax rate changes; CDTFA, Special notice L-1037: new sales and use tax rates effective October 1, 2026 (PDF); CDTFA, California city and county sales and use tax rates (effective October 1, 2026)
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Common questions
What is the sales tax rate in Los Angeles?
CDTFA lists 10.25% for the city of Los Angeles as of October 1, 2026. That's half a point higher than before, because Measure ER added a 0.5% countywide tax. Many other cities in the county charge more, between 10.75% and 11.75%, so check the address of each sale if you work across the county.
Does Los Angeles require businesses to accept cash?
Not that we could find as of October 2026. The City Council has had a proposed cashless retail ban in the works since 2023 (Council File 23-0846), but we found no adopted ordinance, and we found no statewide cash requirement either. If you go card-only, SB 478 means the card fee has to be in your advertised prices.
Can a Los Angeles restaurant add a credit card surcharge?
Generally yes, if it's disclosed honestly. California's ban in Civil Code 1748.1 is still on the books, but the Attorney General generally follows the 2018 Italian Colors ruling for similarly situated merchants. Keep the fee within your cost and the card network caps, leave debit cards out, and read our restaurant payment processing guide before you print new menus.
How do I update my POS for the October 2026 rate change?
Change the rate from 9.75% to 10.25% on every terminal, your online checkout and any invoice templates used for sales in the city. If you also sell in other cities, look each address up with CDTFA, because many cities in the county now charge 11% or more. Then run a test sale and check the receipt.
More California cities besides Los Angeles
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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