Los Angeles to Weigh 0.5% Sales Tax Increase
Los Angeles residents will decide on November 3 if they will pay a higher sales tax rate on everyday retail purchases.
Updated on Oct. 22, 2026 in Saving
Live Poll
Should your city fund expanded fire services through new taxes rather than existing budget reallocation?
Los Angeles voters head to the polls on November 3, 2026, to decide on Measure FD, a proposal that would increase the city sales tax by 0.5%. If approved, the tax rate would rise to 10.75% to provide an estimated $345 million in annual funding for the Los Angeles Fire Department.
Why it matters
The measure arrives as the city navigates budget priorities, with supporters citing a need for resources to manage rising emergency call volumes. This proposal represents a potential increase in the daily cost of living for residents through higher prices on taxable retail purchases.
The proposed 0.5% hike would bring the city sales tax to 10.75%, generating approximately $345 million annually for the fire department. This follows an October 1, 2026, rate increase that moved the city's sales tax to 10.25%.
The players
Los Angeles Fire Department
The municipal agency responsible for fire suppression and emergency medical services currently operating 106 stations.
Los Angeles Firefighters Union
A labor organization representing city firefighting personnel that has allocated $6 million to campaign for the tax measure.
Los Angeles Police Union
A labor organization representing local law enforcement officers that has committed $2 million to campaign against the measure.
The details
If the measure passes, the 0.5% tax will apply to all taxable retail purchases made within the city of Los Angeles. The revenue is earmarked to expand fire department resources, which handled approximately 497,000 emergency calls in 2025. This proposal aims to supplement the current $898 million department operating budget, a small portion of the city's $14.85 billion total 2026-27 fiscal year budget.
Timeline
November 3, 2026: Voters will decide on Measure FD.
October 1, 2026: The city's current 10.25% sales tax rate went into effect.
2025: The fire department handled approximately 497,000 emergency calls.
Money Landscape
Measure FD proposes a new tax tier in the wake of the city's recent shift to a 10.25% sales tax rate effective October 1, 2026. It highlights the ongoing municipal debate over whether to expand tax levies or reallocate existing funds within the $14.85 billion annual city budget.
Residents should review their anticipated retail spending, as a successful vote would increase the cost of most taxable goods by 0.5%. Households planning significant purchases may want to consider how this potential rate adjustment could impact their total costs after the vote.
The takeaway
If passed, the new tax rate would take effect on the first day of a calendar quarter occurring more than 110 days after adoption. Voters may wish to consult the official city ballot guide to review the specific distribution of funds before the November 3, 2026, election.
Further reading
Learn more about local tax policies and budgeting at Los Angeles Saving.
Source note: This article includes information reported by Daily News.
Live Poll
Should your city fund expanded fire services through new taxes rather than existing budget reallocation?
