Takoma Park Home Business: Home Occupation Permits Rules (2026)

Under Montgomery County's zoning ordinance, home occupations that comply with all accessory use standards are permitted by right in residential zones and do not require a conditional use permit or special exception. This means Takoma Park residents can start qualifying home businesses without zoning approval, provided they meet all standards (33% floor area limit, one non-resident employee maximum, no exterior evidence, no walk-in retail). However, most home businesses need a Montgomery County business license from the Department of Finance. The license fee varies by business type. Maryland requires state tax registration (sales tax, income tax withholding) depending on the nature of the business. Professionals requiring state licenses (attorneys, therapists, accountants) must maintain those independently. If a home business does not meet the standard home occupation criteria, the owner would need to apply for a conditional use permit, which requires public notice, a hearing before the Office of Zoning and Administrative Hearings, and approval. This is a more involved process with no guaranteed outcome. The Takoma Park economic development office can provide guidance to new home business owners.