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If you live in LA County, you could pay more at the checkout. As of April 1, the sales tax rate in unincorporated parts of Los Angeles County — and in cities without their own special tax measures — increased from 9.5% to 9.75%.
But that’s just the baseline. Many cities across the county — including Long Beach, Glendale and West Hollywood — will now see a 10.5% tax. Others, like Lancaster and Palmdale, have pushed rates even higher, up to 11.25%, after approving additional tax hikes.
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The increase follows voters approving Measure A in November 2024, which replaced the existing Measure H quarter-cent tax with a half-cent tax hike. The increase is aimed at funding countywide homeless services.
How will this tax impact shoppers?
Measure A, a new sales tax in LA County starting April 1, 2025, will raise over $1 billion annually, with 60% going to homeless services and 40% to affordable housing. Some cities, including Santa Monica and Pico Rivera, are now subject to the new tax rules.
While the tax increase seems small on minor purchases, it can add up on larger items. In Westlake Village, shoppers are already noticing a difference: The LA County side now pays 9.75%, while the Ventura County side pays 7.25%.
“So if I have a choice, I’m going to the one where it’s less,” Laura, a shopper, told CBS News.
And Laura isn’t alone.
“As soon as I saw the bill today, I was like, whoa! I’m pregnant, so I’m trying to save money during this time,” Brittney Mukar, another shopper, added.
Not everyone is convinced the additional funds will be well spent. LA County leaders have faced criticism after an audit from November 2024 found the Los Angeles Homeless Services Authority (LAHSA) could not track how nearly $2.5 billion in funding was spent.
“I’m all for helping the homeless — I’m not for wasting my money,” said Laura.
How to protect your budget amid rising taxes
With higher prices and economic uncertainty already straining household budgets, even a modest increase in sales tax can affect your bottom line. Here are a few ways to soften the blow.
Find ways to save
We often don’t realize just how much we spend on insurance each year — until it starts to add up. U.S. homeowners’ insurers have hiked premium rates by double digits over the past two years. With this in mind, it could pay to take a closer look at your home and auto insurance, especially if they’re up for renewal.
Shopping around is one of the best ways to find better rates, but calling individual providers can take a lot of time and effort.
OfficialHomeInsurance.com takes the hassle out of shopping for home insurance. In just under 2 minutes, you can explore competitive rates from top insurance providers, all in one place. OfficialHomeInsurance.com can make it easy to find the coverage you need at a price that could fit your budget.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
But home insurance premiums aren’t the only thing coming out of homeowners’ pockets. If you own a car, you have another cost to deal with.
Car insurance rates rose an average of 16.5% in 2024, according to ValuePenguin. Like with home insurance, shopping around and bundling can lead to substantial savings.
OfficialCarInsurance.com lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you’re getting the best deal. Their matchmaking system takes into account your location, vehicle details and driving history to find you the lowest rate possible.
You can find deals starting at just $29 per month and switch over your policy in only a few minutes.
Get more for your cash
With prices rising across the board, it’s essential to ensure your money is growing as quickly as it can and that you’re earning interest on all your ready cash. Switching to a high-yield savings or checking account can help you grow your savings.
Wealthfront’s high-yield cash account offers a 4.00% APY on deposits — nearly ten times the national average. Plus, it charges no account, monthly or overdraft fees.
The account has no annual or maintenance fees and is insured by the Federal Deposit Insurance Corporation for balances up to $8 million.
Even better, if you fund your account with $500 or more, you get a $30 bonus.
Save while you spend
You don’t need to set aside big chunks of money to make progress on your long-term financial goals. With Acorns, you can automatically invest your spare change every time you spend, helping you grow your savings effortlessly.
The app rounds up each of your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. This means that every transaction — from your morning coffee to grocery shopping — contributes to building your savings account.
That $4.25 coffee? It’s now a 75-cent investment in your future. You can even get a $20 bonus investment when you sign up with a recurring deposit.
These small amounts add up over time. It’s a simple way to grow your savings without even thinking about it.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
