Tax Lawyers in Los Angeles

Los Angeles does not impose a separate city income tax; instead, residents are subject to California’s progressive state income tax; rates from 1% to 12.3%, plus an additional 1% on income exceeding $1 million, culminating in a top rate of 13.3% for high earners.

Businesses operating within the city are subject to the California state corporate income tax rate, generally 8.84% (with banks and financial institutions at 10.84%), in addition, businesses in the City of Los Angeles are also subject to the Los Angeles City Business Tax (LACBT), a local gross receipts tax with rates varying by business classification, typically ranging from 0.1% to 6.0% of gross receipts.

The sales tax in Los Angeles County increased to 9.75% on April 1, 2025. This rate includes the 7.25% California state tax, a 1.00% Los Angeles County rate, and a 1.50% special district tax; however, individual cities within the county may have higher total sales tax rates due to local additions. The city does not have a state-level inheritance tax or estate tax.

In Los Angeles County, property taxes are governed by California’s Proposition 13, limiting the base rate to 1% of assessed value with a potential 2% annual increase.

The city of Los Angeles imposes a real property transfer tax of 0.45%, along with a Measure ULA tax on property sales over $5.15 million (4% for $5.15M–$10.3M, and 5.5% for property above $10.3M.

Additionally, taxes in Los Angeles are managed at the state level by the California FTB (income/corporate) and CDTFA (sales). Locally, Los Angeles County handles property taxes, and the City of Los Angeles administers its Business Tax and property transfer taxes.

Los Angeles does not have a city income tax; instead, both individuals and businesses pay California state income tax. California employs a progressive system for individual income, with rates from 1% to 12.3%, plus a 1% Mental Health Services Tax on income exceeding $1 million, reaching a top rate of 13.3%. Lower individual earners benefit from deductions and credits, resulting in a smaller tax burden, while higher earners pay a larger percentage. Social Security benefits are exempt from California state income tax.

For corporate income, California levies a flat tax rate of 8.84% on most corporations’ taxable income. Banks and financial institutions face a slightly higher rate of 10.84%. Additionally, most corporations doing business in California, including those in Los Angeles, are required to pay an annual franchise tax, with a minimum of $800.

Furthermore, Los Angeles has an average sales tax rate of 9.75%, comprising the 7.25% state rate, a 1.00% county rate, and a 1.50% special district tax. Also, the City of Los Angeles levies a tax on utility services like electricity, gas, telephone, and water. The residents also pay state and federal excise taxes on goods like gasoline, tobacco, and alcohol.

Despite its high taxes, the city of Los Angeles exempts some income sources. They include:

• Social Security benefits
• Unemployment compensation
• State income refund
• Disability insurance and certain employer-provided benefits
• Grants paid to low-income individuals
• Life insurance proceeds
• Some tax credits (e.g., low-income and renter credits)

Yes, the city of Los Angeles provides:

• Property tax exemptions for homeowners, seniors, disabled individuals, and veterans.
• Sales tax exemptions for groceries, prescription medications, and medical equipment.
• Income tax exemptions on Social Security benefits and some retirement distributions.
• Green energy tax incentives for installing solar panels and energy-efficient appliances.

The cost of hiring a Los Angeles tax lawyer is influenced by the complexity of your tax issue and the legal work involved.

TaxLawyer.com simplifies the process by helping Los Angeles taxpayers find qualified Los Angeles tax attorneys who deliver expert guidance without overwhelming your finances, offering tailored solutions to fit your needs.

When looking for a Los Angeles tax lawyer, follow these steps:

• Identify your tax problem, whether it’s an IRS audit, offshore tax issues, or tax relief.
• Verify the credentials and expertise of the tax lawyer in Los Angeles.
• Arrange an initial consultation to assess your legal options.
• Clarify fee structures and legal agreements before hiring.

At TaxLawyer.com, we make this process easier by connecting Los Angeles residents with skilled tax lawyers Los Angeles who can provide effective solutions.