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Bakersfield, CA Local Taxes & Fees: Business Tax Classification (2026)

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

Key Facts

Classification A rate
$0.65 per $1,000 gross receipts
Classification B rate
$0.30 down to $0.01 per $1,000
Minimum tax
$25.00 per certificate
Certificate validity
Expires every June 30
Reclassification limit
No more than once per year
Enforcing office
City finance director / collector

Summary

Every business operating in Bakersfield pays an annual tax under Municipal Code Section 5.02.240, split into Classification A (professionals like doctors, lawyers, and engineers, taxed at $0.65 per $1,000 gross receipts) and Classification B (all other businesses, taxed on a sliding scale from $0.30 down to $0.01 per $1,000).

Every person who engages in business at a fixed place of business within the city shall pay an annual business tax based upon gross receipts at the rates... Classification A — $0.65 per $1,000 of gross receipts or fractional part thereof; minimum tax: $25.00. Classification B — 0.30 per $1,000 of gross receipts from $1.00 to $1,000,000; $0.15 per $1,000 of gross receipts from $1,000,001 to $10,000,000; $0.05 per $1,000 of gross receipts from $10,000,001 to $100,000,000; $0.01 per $1,000 of gross receipts of $100,000,001 or more; and minimum tax: $25.00... Classification B shall include all other types of businesses, except those subject to flat rates enumerated in Section 5.02.260.

View official code

Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 5221, passed July 15, 2026).

Full Breakdown

060(B) remains valid only until June 30 following issuance. 240 using two classifications. 65 per $1,000 of gross receipts, with a $25 minimum. 01 per $1,000 above $100,000,001, also with a $25 minimum. 010(D), with carve-outs for cash discounts, sales tax collected, returned merchandise, and amounts collected as an agent for others. 250; the collector investigates and assigns the classification that 'most nearly fits,' the change applies only going forward, not retroactively, and no business may be reclassified more than once per year.

Violations & Fines

Operating without a valid business tax certificate is unlawful under Section 5.02.060(A), and a permit-holder who fails to exhibit the certificate on a collector's or police officer's demand is subject to the general penalty in Section 1.40.010. Late payment carries the delinquency penalties set out in Section 5.02.230, and the collector or any police officer may enter any place of business at any reasonable time to inspect for compliance under Section 5.02.050(C).

Frequently Asked Questions

What businesses fall under Bakersfield's Classification A tax rate?
Classification A under Section 5.02.240(B)(1) lists specific licensed professions, appraisers, architects, attorneys, accountants, chiropractors, dentists, engineers, physicians, optometrists, real estate agents, surveyors, veterinarians, and similar callings, plus a catch-all for 'all other professions not specifically set forth.' These businesses pay $0.65 per $1,000 of gross receipts, with a $25 minimum tax.
How is Classification B taxed differently from Classification A?
Classification B, which includes all other businesses not on a flat-rate list, is taxed on a declining scale that drops as receipts rise: $0.30 per $1,000 up to $1 million, falling to $0.05 per $1,000 between $10 million and $100 million, and $0.01 per $1,000 above that, under Section 5.02.240(A).
Can a Bakersfield business dispute its tax classification?
Yes. Under Section 5.02.250, a certificate holder who believes their business is misclassified may apply in writing to the collector, who investigates and assigns the classification that most nearly fits. The reclassification is not retroactive and takes effect at the next tax calculation, and no business may be reclassified more than once in a year.
Is a Bakersfield business tax certificate required even for a home-based business?
Section 5.02.060(A) makes it unlawful to 'transact and carry on any business in the city' without first obtaining a certificate and paying the prescribed tax, with no exception for scale or location, though Section 5.02.060(C) exempts businesses constitutionally exempt from local taxation and passive rental real estate activity under IRC Section 469.

Sources & Official References

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