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El Paso, TX Home Business: Zoning & Home Occupation Permits (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified October 2026

Key Facts

Non-resident employees
Two at any one time per home occupation
Floor area cap
25 percent of the dwelling's gross floor area
Sign
One sign, 1 square foot maximum, not internally illuminated, no permit
Hours
7 a.m. to 7 p.m. outdoor; 7 a.m. to 10 p.m. indoor
Instructional classes
Maximum of six students per session
Outdoor activity screening
Solid fence at least six feet high
Banned uses
21 listed in Subsection E, including restaurants and engine repair

Summary

El Paso allows a business at home only where the zoning district permits home occupations as an accessory use, and then only within 13 standards. Non-resident staff are capped at two people on site at once, no more than 25 percent of the dwelling's gross floor area can be used, and the only sign allowed is one square foot, unlit, and exempt from a sign permit.

Where permitted as an accessory use in a district, a home occupation shall meet the following requirements: ... 5. Shall not conduct outdoor activities unless the activities are screened from the neighboring property by a solid fence of at least six feet in height; ... 9. No more than two persons who are not residents may be employed on the site at any one time per home occupation; ... 10. No more than twenty-five percent of the gross floor area of the dwelling shall be used in accommodation of the home occupation, except for licensed boarding home, child and adult personal care facilities; ... 12. One sign, not exceeding one square foot in sign area and not internally illuminated shall be permitted for a home occupation. A sign permit shall not be required for a sign complying with this section; ... D. Application for a home occupation license shall be made pursuant to the requirements of Title 5 (Business taxes, licenses and regulations) of this Code.

Full Breakdown

El Paso City Code Section 20.10.270 governs home occupations in the supplemental use regulations of Title 20 (Zoning). The rule applies only where a district lists a home occupation as a permitted accessory use. Under Subsection A, the business must stay secondary and incidental to the dwelling, and only the owner or tenant of the residence, or a family member of the owner or tenant, can conduct it. It cannot produce noise, vibration, smoke, dust, odor, heat, glare, fumes, electrical interference, or waste run-off outside the dwelling unit or garage.

Hours run from seven a.m. to seven p.m. for outdoor activities and seven a.m. to ten p.m. for indoor activities, though certain residential uses can run around the clock. Instructional classes can be held outside the main building but are capped at six students per session. Outdoor activities need a solid fence of at least six feet in height screening them from the neighbor. Traffic and commercial deliveries or pick-ups cannot exceed what a normal household generates, and no equipment, materials, or merchandise can be displayed or stored where it is visible from a street or public right-of-way.

A home occupation that needs a structural alteration to meet the nonresidential construction code is prohibited, except for accessibility modifications. Only products made on the premises, or incidental to the permitted home occupation, can be sold there. The two-employee cap has one carve-out: child and adult care facilities can exceed two when a license or state law requires it. The 25 percent floor-area cap also exempts licensed boarding home, child and adult personal care facilities. Subsection B lists 14 categories of uses that need no license, from professional offices and consultants to studios, small repair shops, and a no-impact home-based business as defined in Section 229.902 of the Local Government Code.

Subsection D sends license applications to Title 5 (Business taxes, licenses and regulations). The section was last amended by Ord. No. 019806 on 10-14-2025, so the current text is in force.

Violations & Fines

Subsection E bars 21 uses from ever qualifying as a home occupation, and a business that matches one is not a permitted accessory use at a home. The barred list includes beauty shops and barber shops, carpenter shops, electrical shops, plumber shops, heating and air conditioning shops, auto repairing or painting, restaurants, cocktail lounges, adult oriented businesses, recycling centers, contractors yards, and any internal combustion engine repair. Operating outside the Subsection A standards, such as a third non-resident employee, a sign larger than one square foot, visible outdoor storage, or traffic beyond normal household levels, takes the business outside the permitted accessory use. Section 20.10.270 itself prints no fine or penalty amount and names no separate appeal path.

Frequently Asked Questions

What counts as a home occupation under El Paso City Code Section 20.10.270?
It is a business run at the dwelling that is secondary and incidental to residential use, conducted by the owner, the tenant, or a family member, and held to the 13 standards in Subsection A. It must also sit in a district that permits home occupations as an accessory use. Subsection B lists examples such as professional offices, studios, tutoring, and small crafts.
How many employees can a home occupation in El Paso have?
No more than two persons who are not residents can be employed on the site at any one time per home occupation. Residents of the home do not count toward that figure. Child and adult care facilities can exceed two non-resident employees when a license or state law requires more.
Can I put a sign on my El Paso home business?
Yes, one sign. It cannot exceed one square foot in sign area and cannot be internally illuminated. A sign that complies with Section 20.10.270 does not need a sign permit. A larger sign, an illuminated sign, or a second sign falls outside this exemption.
Which businesses are banned as home occupations in El Paso?
Subsection E bars 21 uses, including physical or medical treatment of persons or animals, beauty and barber shops, carpenter, electrical, plumber, and heating and air conditioning shops, auto repair or painting, restaurants, cocktail lounges, rental outlets, equipment sales, adult oriented businesses, recycling centers, and any internal combustion engine repair. Massage establishments are barred unless they employ massage therapists licensed by the state.
When can a home occupation operate in El Paso, and does it need a license?
Outdoor activities run from seven a.m. to seven p.m., and indoor activities from seven a.m. to ten p.m. Uses listed in Subsection B are permitted without a license, including a no-impact home-based business under Section 229.902 of the Local Government Code. Where a license applies, Subsection D requires the application under Title 5 (Business taxes, licenses and regulations).

Sources & Official References

Other rules in El Paso

All El Paso rules

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