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

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

Key Facts

Code Section
SCMC 24.10.160
Max Floor Area
400 sq ft
Traffic Limit
8 vehicle round trips/day
Employees
1 nonresident max; operated by resident
Yard/Parking Use
No required yard, setback, or parking space

Summary

Santa Cruz Municipal Code Section 24.10.160 allows a home occupation only as a use clearly incidental and secondary to the dwelling, operated by a resident, employing no more than one nonresident, occupying no more than 400 square feet, and generating no more than eight vehicle round trips per day.

A home occupation shall be operated and maintained only by a resident of the dwelling unit in which it occurs; shall employ no more than one person at the residence or the property other than the members of the resident family or household; shall not change the residential character of the dwelling units; and shall not generate a vehicular traffic increase of more than eight round trips per day, including deliveries and clients.

Full Breakdown

' Subsection 2 requires the business to be operated only by a resident of the dwelling, to employ no more than one person other than resident family/household members, to not change the residential character of the unit, and to not generate more than eight vehicular round trips per day including deliveries and clients. 1200. 210), subject to these standards. Remote employees working at home for an outside company are not considered a home occupation unless classified as independent contractors.

Violations & Fines

A home occupation that exceeds these standards loses its status as a permitted accessory use. Under SCMC Section 24.04.250 it is unlawful to conduct a use contrary to the requirements of the zoning title or contrary to a zoning permit; the zoning administrator enforces these provisions under Section 24.04.210 through inspections, notices, and abatement orders.

Frequently Asked Questions

How big can my home business be in Santa Cruz?
SCMC Section 24.10.160(3) limits a home occupation to no more than 400 square feet and prohibits using any required front or side yard, setback, or required parking space. The business must remain clearly incidental and secondary to your residence.
Does working from home for an employer count as a home occupation?
No. SCMC Section 24.10.160(2) says residents performing job duties at home for a company located elsewhere are not considered to have a home occupation unless their employer classifies them as independent contractors.

Sources & Official References

Other rules in Santa Cruz

All Santa Cruz rules

How Santa Cruz compares: Easiest Cities to Run a Home Business·California rules heatmap·Compare Santa Cruz to another location·View the California home business overview

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