Los Angeles Local Tax Guide (2026)
Workers in LA pay only California state income tax and federal tax — there is no city line on the pay stub and no LA return to file. The City of LA Office of Finance administers business, utility, parking, and cannabis taxes, not a personal income tax.
Verified 2026-08-21 against official city / state sources. Where a 2026 rate could not be individually re-verified, the verified year and source are stated instead of a guess.
Quick answer (Los Angeles, 2026)
No — Los Angeles does not impose a city income tax. No California city currently taxes residents’ or workers’ income. LA instead levies a business tax of $1.01–$4.25 per $1,000 of gross receipts (category-dependent), utility user taxes, parking and cannabis taxes. Source: City of Los Angeles Office of Finance — business taxes (no city income tax) (retrieved 2026-08-21).
What you actually pay
No California city imposes a personal income tax on residents or workers — Los Angeles included. Paycheck withholding is federal + California state only.
LA’s business tax is a gross-receipts tax charged per $1,000 of revenue, with rates by industry (e.g., $4.25 for professions/occupations, $1.27 retail, $1.01 wholesale).
A small business exemption applies at or below $100,000 in annual gross receipts; a separate creative-artist exemption covers qualifying creative work up to $300,000.
Other LA local levies include utility user tax, parking tax, and cannabis business taxes.
This guide summarizes structural facts for planning. It is not a substitute for the official California tax code or a licensed preparer.
Frequently asked questions
Related state guide
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Tax outcomes depend on your full facts, filing history, and jurisdiction-specific rules that change yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Sources & methodology
- City of Los Angeles Office of Finance — business taxes (no city income tax) — City of Los Angeles Office of Finance