Residents of Campbell, California, will experience an increase in their sales tax to **10.5%** following the approval of **Measure A**. This temporary tax hike, which amounts to an additional five-eighths of a cent, passed with the support of **57%** of voters on **November 4, 2025**. The increase positions Campbell among the highest sales tax rates in the state, impacting local consumers and businesses alike.
The new tax rate will not affect all residents equally. In addition to Campbell, the cities of **Milpitas** and **San Jose** will also see their sales tax rates rise to **10%** or higher due to existing local tax measures. **Los Gatos** will increase its rate from **9.25%** to **9.875%**, while the remaining **11 cities** in Santa Clara County will see a rise from **9.125%** to **9.75%**. The increase is set to remain in effect until **2031**, unless county leaders decide to extend it.
Campbell stands out with the highest sales tax rate in Santa Clara County, reflecting a broader trend in the region. The city had already approved a previous half-cent sales tax increase in **2024**, aimed at generating **$7 million** annually to alleviate financial pressures. This adjustment was made possible by a state bill allowing the city to exceed the standard **9.25%** limit. However, Campbell is currently facing legal challenges regarding this sales tax hike.
Local officials, including **Mayor Sergio Lopez**, emphasized the importance of community trust in accepting this tax increase. “People don’t love to give more of their money to taxes, but our community will do that if you can maintain trust and accountability and show where the money is going,” Lopez stated.
**Dan Orloff**, a long-term business owner in Campbell and former president of the Chamber of Commerce, acknowledged the necessity of quality services funded by taxes. He suggested that educating both consumers and businesses about the reasoning behind the tax structure is essential for community acceptance.
The Measure A tax will be applied to tangible goods sold within Santa Clara County, including vehicles, furniture, and clothing. Notably, exemptions include groceries, prescription medications, certain medical devices, children’s diapers, and items purchased with EBT cards. Essential household expenses, such as rent and utilities, are also exempt from this tax. The applicability of Measure A to online purchases depends on whether the retailer has a physical presence in California.
County leaders have framed Measure A as vital to sustaining the public hospital system, which faces significant financial challenges, particularly due to federal spending cuts. The measure’s passage is seen as a critical step in maintaining healthcare services in the area, especially for low-income residents who rely on public hospitals.
Despite its intended purpose, Measure A has sparked debate over its impact on low-income individuals. Critics argue that the increased tax burden will disproportionately affect vulnerable populations. In contrast, proponents highlight the necessity of supporting the county’s public hospital system, which serves as a crucial safety net.
The county’s healthcare system has become a focal point of budget discussions, with law enforcement officials expressing concerns about ongoing expansions in healthcare funding while their own budgets face cuts. Initially, law enforcement unions were skeptical about Measure A but later supported it after securing commitments regarding budget allocations.
In a recent announcement, **County Executive James Williams** indicated he would recommend the Board of Supervisors allocate all Measure A revenues to counteract federal healthcare cuts. This recommendation is still pending approval and has raised concerns among law enforcement groups, with **District Attorney Jeff Rosen** suggesting an investigation.
Amid these developments, a new state law, **Senate Bill 63**, allows five Bay Area counties, including Santa Clara, to propose higher sales taxes aimed at addressing public transit funding shortfalls. The **VTA** board of directors has opted into this legislation, potentially leading to a **0.5%** sales tax increase on the **November 2026** ballot. If passed, this would result in a combined sales tax increase of **1.125%** for Santa Clara County from **2027 to 2031**, further complicating the fiscal landscape for residents and businesses.
As the community navigates these changes, the implications of Measure A will continue to unfold, impacting everything from local businesses to healthcare access for residents.
