California Residents Nickel-and-Dimed by Mounting Taxes and Fees

Analysis shows surcharges and taxes piling up on everyday purchases across the state

Published on Feb. 13, 2026

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Californians are facing a growing number of small taxes and fees on everything from hotel stays to grocery purchases, with an analysis showing the final cost of goods and services can be significantly higher than advertised due to these surcharges. From a 14% hotel tax in Los Angeles to a 10-cent bottle deposit, these nickel-and-dime fees are adding up and contributing to the high cost of living in the state.

Why it matters

The proliferation of these taxes and fees across California is straining residents' budgets and highlighting the state's challenging tax environment. While some of the revenue goes toward public services, critics argue much of it is simply funding marketing campaigns rather than tangible improvements. The issue has become a major point of frustration for many Californians and is driving some to consider leaving the state.

The details

An analysis by The California Post found surcharges and taxes tacked onto a wide range of purchases in the state. For example, a $239 hotel stay in Los Angeles can balloon to $289 after adding a 14% Transient Occupancy Tax, a fee for hotel worker protection devices, and other levies. Alcohol purchases also incur a 10-cent California Redemption Value fee per bottle over 24 ounces. Overall, California has the 7th highest combined state and local sales tax rate in the country at 8.99%, meaning an extra $10 in taxes for every $100 spent.

  • In 2022, then-Mayor Eric Garcetti signed the Hotel Worker Protection Ordinance, which led to hotels adding a $10 surcharge.
  • California passed Senate Bill 478 in 2021, later amended by SB 1548, requiring businesses to disclose all mandatory charges.

The players

The California Post

A news publication that conducted an analysis on the proliferation of taxes and fees across California.

Eric Garcetti

The former mayor of Los Angeles who signed the Hotel Worker Protection Ordinance in 2022.

Alexander Efros

A certified financial planner and tax specialist who commented on the complex tax environment in California.

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What they’re saying

“It's literally just a sales campaign, not cleaning up the streets, not improving the the life experience with people there, but marketing. That's what it's going to.”

— Alexander Efros, Certified Financial Planner and Tax Specialist (The Post)

“There's sort of a blind acceptance to the reality of our world right now that I can't quite shake, anger feels a little fruitless — wish we were leaving in a different reality.”

— Miles Stapp (The Post)

What’s next

Voters in Los Angeles County will decide in June whether to pass a half-cent sales tax hike, and the Los Angeles City Council has approved a ballot measure to increase the hotel tax during the 2028 Olympics.

The takeaway

The growing number of taxes and fees in California is straining residents' budgets and fueling frustration, with some considering leaving the state due to the high cost of living. While some of the revenue goes toward public services, critics argue much of it is simply funding marketing campaigns rather than tangible improvements to the state.