Berkeley taxes businesses through a gross-receipts schedule that varies by classification, with separate rates for retail, professional services, manufacturing, contractors, residential rentals, cannabis operators, and online platforms.
BMC Chapter 9.04 establishes the Berkeley Business License Tax, a gross-receipts framework with classifications such as professional, retail, wholesale, manufacturing, recreation, contractors, and residential rental. Each class has its own per-thousand rate, and operators must self-classify when filing the annual renewal due in March. Cannabis retail and manufacturing carry their own rates set by voter measures. Voters have updated the rate structure multiple times, including Measure FF and later refinements that targeted large landlords and high-revenue technology firms. Audits look for misclassification, undisclosed activity, and unreported affiliated entities.
Misclassification, late filing, or underreporting triggers penalties, daily interest, audit assessments, and possible suspension of the city business license until balances are paid.
See how Berkeley's business tax classification rules stack up against other locations.
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