The votes are still being counted. But the trend is clear.
LA County's Measure ER — a half-cent sales tax increase to fund public healthcare — took the lead in the vote count on June 8 and appears firmly on track to pass. Quaderno
Vote counting continues through June 26, with final certification required by July 2. Updates are dropping today at 5 p.m. AccurateTax
Barring a dramatic reversal in the remaining ballots, LA County's sales tax is going up.
And for every business selling into the largest county in the United States, the compliance clock starts now — not in October.
The number is simple. The implications aren't.
Measure ER is a temporary half-cent (0.5%) increase in the Los Angeles County sales tax for five years — estimated to generate approximately $1 billion per year to support healthcare and other essential services. Quizlet
In practice:
That 0.5% difference affects every single taxable transaction in LA County — every retail sale, every delivery, every service transaction subject to sales tax. Multiply it across millions of daily transactions in a county of 10 million people, and you're looking at $1 billion a year in additional tax collected from consumers and businesses.
Here's the compliance complexity that most businesses don't realize until it's too late.
LA County contains 88 incorporated cities — and many of them have their own additional local sales tax on top of the county base rate.
The county's base sales tax rate is 9.75%, while the cities of Lancaster and Palmdale already have sales tax rates above 11%. Quaderno
Measure ER's half-cent adds to whatever combined rate already applies in each city — not just to the county base. That means:
There is no single "LA County rate." There are 88 city rates plus an unincorporated county rate — all of which shift upward by 0.5% when Measure ER takes effect.
If you're collecting a flat "LA County rate" across all your California transactions, you're already making errors. Measure ER makes fixing that more urgent.
Physical retailers in LA County: Your point-of-sale system needs to be updated before the first transaction of October. The rate change applies to all taxable sales at your location — every product category that isn't specifically exempt.
Ecommerce sellers shipping to LA County: Every order shipped to an LA County address becomes subject to the higher rate in October. If your tax software calculates rates by ZIP code or address, it needs to pull the updated California rate tables when they go live. Not all platforms update automatically — verify with your vendor.
Marketplace sellers (Amazon, Etsy, Shopify): Most major marketplace facilitators collect and remit California sales tax on your behalf. But verify that your platform is applying rates at the address level — not just a statewide average. LA County's complexity requires ZIP-code-level accuracy.
Service businesses in LA County: If you provide taxable services — certain repairs, parking, specific personal services — the rate increase applies to those transactions as well. Review your service taxability under California rules and make sure your invoicing reflects the correct October rate.
Out-of-state sellers with California nexus: If you have economic nexus in California — $500,000 in annual California sales — you're responsible for collecting the correct rate for every delivery address in the state, including the updated LA County rates. Your compliance obligation doesn't change based on where you're headquartered.
October 2026 sounds like a long time away. It isn't — not if you're managing a complex POS environment, multiple sales channels, or a large customer catalog.
Here's the timeline that gives you the best chance of a clean transition:
Now — June:
July:
August:
September:
October 1 (or whenever the effective date is confirmed):
For ecommerce sellers specifically — here are the highest-population LA County cities where your delivery addresses are most likely to cluster, and what their combined rates will look like after Measure ER:
| City | Current Rate | Post-Measure ER |
|---|---|---|
| Los Angeles (city) | 10.25% | 10.75% |
| Long Beach | 10.25% | 10.75% |
| Glendale | 10.25% | 10.75% |
| Santa Monica | 10.25% | 10.75% |
| Culver City | 10.25% | 10.75% |
| Pasadena | 10.25% | 10.75% |
| Torrance | 10.25% | 10.75% |
| Burbank | 10.25% | 10.75% |
| Unincorporated LA County | 9.75% | 10.25% |
| Lancaster | 10.25%+ | 10.75%+ |
| Palmdale | 10.25%+ | 10.75%+ |
These are estimates based on current rates plus Measure ER's 0.5% addition. Verify final combined rates through the California Department of Tax and Fee Administration's rate lookup tool when official rates are published closer to the effective date.
One more thing worth understanding — especially if your customers ask.
Measure ER is estimated to generate approximately $1 billion per year to support healthcare and other essential services. The measure also includes independent oversight and public reporting on how funds are used. Quizlet
But Measure ER is a general tax — not a special tax with legally dedicated revenue. The Board of Supervisors approved a spending plan directing the money toward healthcare. That spending plan is not legally binding. Quaderno
The oversight committee and public reporting requirements are real — but the supervisors retain discretion over how general fund revenue is actually spent. Critics hammered this point throughout the campaign. It's worth knowing because it will come up in conversations with customers who ask why they're paying more.
Measure ER's near-passage — in a county that has approved multiple tax measures in recent years and where some cities already exceed 11% combined rates — tells a story about where California's local tax landscape is heading.
The California State Association of Counties estimates federal cuts will cost the 58 counties up to $9.5 billion. "For most California counties, raising local taxes to absorb the impacts of federal cuts is not feasible," said Graham Knaus, chief executive of the association. The Sales Tax People
LA County found a way to do it — barely. Other California counties are watching. Sacramento County, San Diego County, and others facing similar healthcare funding gaps may bring their own measures to the November 2026 ballot.
If you sell into California broadly, LA County's Measure ER may be the first of several local rate changes heading your way before year-end. The time to build a flexible, address-level California rate management process is now — before the next county puts a measure on the ballot.
Selling into LA County and want to make sure your systems are ready for the October rate change — or concerned about California compliance more broadly as more counties consider their own measures? Book a free consultation with our team at sales.tax. We'll review your California footprint, identify every jurisdiction where your rates are about to change, and make sure you're collecting correctly before October hits.