Hawthorne, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Governing section
- HMC § 5.48.010, Fee schedule
- Base fee
- $75/yr under $25,000 receipts
- Top bracket increment
- $100 per $100,000 above first tier
- Fee cap
- $500,000 maximum annual fee
- Reciprocity
- Exempt if home city reciprocates
Summary
Hawthorne taxes most businesses on a gross-receipts sliding scale under HMC § 5.48.010, starting at $75 a year for receipts under $25,000 and rising to $100 per additional $100,000 above the first bracket, capped at $500,000.
Every person, firm or corporation, whether or not having an established place of business within the city, commencing or conducting any business within said city, not otherwise specifically mentioned in this code, shall pay an annual license fee based upon the gross receipts of such business or profession according to the following schedule: Gross Receipts Per Annum / Fee Per Annum: Less than $25,000 / $75.00; $25,000 and less than $50,000 / $90.00; $50,000 and less than $75,000 / $105.00; $75,000 and less than $100,000 / $120.00; $100,000 / $120.00 for the first $100,000.00 plus $100.00 for each $100,000.00 or fraction thereof, thereafter, to a maximum license fee of $500,000.00
Full Breakdown
010: $75 for gross receipts under $25,000; $90 for $25,000 up to $50,000; $105 for $50,000 up to $75,000; $120 for $75,000 up to $100,000; and for receipts above $100,000, $120 for the first $100,000 plus $100 for each additional $100,000 or fraction, up to a maximum fee of $500,000. 015 defines gross receipts broadly to include the total amount of sales or business transacted in the city, amounts received for services performed in the city, and receipts attributable to a local branch office, agent or employee, computed at five times the branch's maintenance cost if separate records are not kept.
015(I), including cash discounts, taxes required to be collected from the customer, refunded sale proceeds, agency pass-through collections, and a real estate broker's sales proceeds beyond the commission earned. 020 lets a business already licensed in another California city skip Hawthorne's fee if that city extends the same courtesy back to Hawthorne businesses.
Violations & Fines
Businesses operating without paying the classified license fee are subject to the city's general business license enforcement under Title 5; the tax administration for related gross-receipts-based taxes runs through Division I of Title 5, and gross receipts is defined by cross-reference to § 5.48.015 for those companion taxes.
Frequently Asked Questions
How does Hawthorne calculate a general business license fee?
What counts as gross receipts for Hawthorne's license fee?
Can a business licensed in another city skip Hawthorne's fee?
Sources & Official References
Other rules in Hawthorne
California rules heatmap·Compare Hawthorne to another location·View the California local taxes & fees overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Business Tax Classification in Nearby Cities
How other cities in Los Angeles County handle business tax classification.