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

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

Key Facts

Base tax
$75 per year
Lowest rate tier
$0.02/sq ft, 0-5,000 sq ft
Highest tier rate
$0.0025/sq ft above 150,000 sq ft
Delinquency penalty
20%/month, capped at 100%
Interest rate
1% per month on unpaid tax
Refund claim window
6 months from overpayment
Violation classification
Infraction under Chapter 1.12

Summary

Cupertino taxes every business operating in the city under Municipal Code Chapter 5.04 unless a specific section sets its own rate. Businesses not separately classified pay a $75 base license tax plus a per-square-foot fee that steps down as floor area grows, from $0.02 per square foot up to 5,000 square feet to $0.0025 above 150,000 square feet, adjusted annually for inflation.

5.04.280 Imposition of Tax–Business Generally. Every person engaged in a business not specifically mentioned or classified in this chapter, within the City of Cupertino, shall pay a business license tax in accordance with the following schedule: A basic tax of seventy-five dollars per year; In addition, each such person shall pay a fee as follows: Square Feet Rate per Square Foot 0-5,000 .0200 5,001-25,000 .0175 25,001-75,000 .0150 75,001-100,000 .0125 100,001-150,000 .0100 150,001 and above .0025 This amount shall increase annually from 1992 based on the indexing formula in Section 5.04.460 of this code.

Full Breakdown

300, $150 plus $5 per machine). 0025 for any floor area above 150,000 square feet. 'Floor area' is defined as the total space occupied by the owner, lessee or tenant, less 15% to account for elevator shafts, stairwells, atria and equipment rooms. 460, so the dollar figures printed in the code rise annually without a new ordinance. 260). 230).

Violations & Fines

Operating without paying the tax makes the amount a debt to the City that the Collector can sue to collect, plus any penalties and costs (§ 5.04.240). Unpaid tax accrues 1% monthly interest and a 20% per month delinquency penalty capped at 100% of the annual tax; fraud found after notice and hearing adds a 90% penalty and can be assessed personally against a responsible officer or shareholder (§ 5.04.250). A chapter violation is also an infraction punishable under Chapter 1.12 (§ 5.04.500).

Frequently Asked Questions

Does every Cupertino business pay the same license tax rate?
No. Section 5.04.280 sets the default rate only for businesses not separately classified elsewhere in the chapter. Solicitors pay a flat $75 under § 5.04.290, and amusement centers pay $150 plus $5 per machine under § 5.04.300, so those categories use their own flat-rate sections instead of the square-footage schedule.
How is floor area calculated for the per-square-foot fee?
Floor area means the total space occupied by the owner, lessee, or tenant in the building, reduced by 15% to account for elevator shafts, stairwells, courts or atria open to the sky, and rooms used only for building operating equipment, per § 5.04.280.
What happens if I pay my Cupertino business tax late?
Interest accrues at 1% per month on the unpaid tax, and a separate delinquency penalty of 20% per month applies, capped at 100% of the year's tax. The Collector can also sue to collect the tax as a City debt under § 5.04.240.
Can I get a refund if I overpaid my business tax?
Yes, but the claim must be filed in writing with the Collector within six months of the last day of the calendar month following the overpaid period, per § 5.04.230. The Collector verifies the claim before issuing any refund.

Sources & Official References

Other rules in Cupertino

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