Gilroy, CA Home Business: Zoning & Home Occupation Permits (2026)

Gilroy's Zoning Ordinance dedicates Article XL to home occupations, defining them under § 30.40.10 as a use 'clearly incidental and subordinate to the use of the dwelling for residential purposes,' intended to be 'undetectable from normal and usual residential activity.' Section 30.40.20 lists twelve criteria a home business must meet to operate without a conditional use permit: only the residents plus one employee may work on-site, and 'not more than two (2) such occupants shall be engaged therein'; the employee must park in the driveway or an on-site paved space; the business must stay entirely inside the main dwelling, with a carved-out exception for swimming lessons in a residential pool; there can be no exterior change, show windows, or signage aimed at attracting customers; no commercial vehicle deliveries; no on-site retail except artist originals, made-to-order goods, or approved cottage food operation items; and no more than two clients, patients or pupils present at once.

Businesses that cannot meet those standards can still operate under § 30.40.30 with a conditional use permit from the Gilroy Planning Commission. Section 30.40.40 flatly bars certain uses from ever qualifying as home occupations, including animal hospitals, vehicle repair or reconditioning, beauty parlors and barber shops, and medical, dental or chiropractic clinics. The residential use tables' footnote 4 requires a zoning clearance from the Gilroy planning manager or designee before any home occupation begins.