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

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

Key Facts

Governing section
Fairfield Municipal Code Section 10B.41
Class A starting rate
$55 on receipts up to $50,000
Class B starting rate
$111 on receipts up to $50,000
Class C starting rate
$55 on receipts up to $50,000
Annual adjustment
CPI-indexed every January 1 starting 2026
Appeal window
15 days to appeal to city council

Summary

Every business operating in Fairfield pays an annual license tax keyed to one of three gross-receipts classifications under Fairfield Municipal Code Section 10B.41: Class A covers retail, contractors and rentals; Class B covers licensed professions; Class C covers manufacturing, wholesaling and administrative support. Rates climb in tiers from under $50,000 up to over $1,000,000 in receipts.

Every person who engages in the business activities described in classifications “A,” “B”,” and “C,” of this Section within the City of Fairfield shall pay a business license tax based upon gross receipts category at the rate listed for each category and in the gross receipts classifications set forth below: ... (a) Classification "A" - Retail Sales, General Services Contractors, Subcontractors, Rentals, and Other Businesses. (1) Every business not enumerated elsewhere in this chapter being conducted, managed, or carried out by a person in the City shall be classified in this category.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4962673; v0 updated 2026-02-17).

Full Breakdown

41 sets the rate by gross-receipts classification. Classification A covers retail sales, general services, contractors and subcontractors, and rentals of four or more units, plus flat sub-rates for auctioneers ($200 a year or $50 a day), handbill distributors ($100 a year or $10 a day), and closing-out or bankrupt sales ($50 a day). Classification B covers licensed and semi-professional occupations named in the section, including accountants, architects, attorneys, dentists, engineers, physicians, real estate agents and veterinarians. Classification C covers manufacturing, wholesaling, and administrative support activities such as corporate headquarters or public-utility services performed in the city.

115 per $1,000. Beginning January 1, 2026, and every year after, the tax rates and tiers adjust automatically by the average percentage change in three regional Consumer Price Index measures reported by the Bureau of Labor Statistics for the preceding October. Contractors and subcontractors must pay their Class A tax when their building permit is issued, and a general contractor must supply the city's tax collector with a list of every subcontractor on the job. The collector can examine an applicant's or licensee's financial books and records to verify the correct classification and gross-receipts figure.

Violations & Fines

A license may be denied or revoked under Section 10B.32 if the applicant falsified the application, the business violates local, state or federal law, the premises fails health, zoning, fire or building codes, or the required tax was never paid; a revoked license forfeits any tax already paid. Anyone aggrieved by a denial, revocation, or tax amount can appeal to the city council within 15 days under Section 10B.33.

Frequently Asked Questions

Which classification does a retail store fall under in Fairfield?
Retail sales, general service contractors and subcontractors, and rental of four or more units all fall under Classification A of Section 10B.41. Any business not specifically listed elsewhere in Chapter 10B also defaults to Classification A, which starts at $55 for gross receipts up to $50,000.
Are professionals like doctors and lawyers taxed differently?
Yes. Section 10B.41(b) puts professions and semi-professions, including attorneys, accountants, architects, physicians, dentists, engineers and real estate agents, into Classification B, which carries a higher base rate than Classification A, starting at $111 for gross receipts up to $50,000 and rising with revenue.
Does the tax rate change every year?
Yes. Starting January 1, 2026, Section 10B.41 adjusts every classification's rates and tiers annually by the average percentage change in three Consumer Price Index readings for the San Francisco-Oakland-Hayward area, the West region, and the U.S. city average, rounded to the nearest dollar.
Can I appeal my business license tax classification?
Yes. Under Section 10B.33, anyone who disputes the collector's classification, tax amount, or a license denial or revocation can file a written notice of appeal with the collector within 15 days, and the decision is stayed until the city council rules.

Sources & Official References

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