Hillsboro, OR Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Fee formula, most businesses
- base + fee per FTE over 2
- Fee formula, rental businesses
- base + fee per unit over 3
- Small landlord exemption
- 3 or fewer rental units
- Downtown surcharge
- extra per-FTE maintenance fee
- Late penalty
- 5% per month delinquent
Summary
Hillsboro calculates its annual business license fee two ways: a base fee plus a per-employee charge for most businesses, or a base fee plus a per-unit charge for landlords renting more than 3 units.
Except as set forth in HMC 5.04.040(B) the annual fee for a business license will be a base amount plus an additional fee for each full-time equivalent (FTE) in excess of 2, up to a maximum aggregate fee... When a person is engaged in the business of renting or leasing residential dwellings or mobile or modular home lots or spaces, the annual business license fee will be a base amount plus an additional fee for each apartment, house, lot or space in excess of 3... No business license or fee is required for persons operating 3 or fewer units.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 1 | Community Development Code: Supplement 1).
Full Breakdown
HMC 5.04.040 sets two fee classes for the City's business license. Most businesses pay a base amount plus an additional fee for each full-time-equivalent employee (FTE) beyond 2, up to a capped maximum, with FTEs prorated for part-time or seasonal staff. Businesses renting or leasing residential dwellings, mobile home lots or spaces instead pay a base amount plus a per-unit fee for each unit beyond 3: landlords with 3 or fewer units owe no business license or fee at all. Businesses inside the downtown maintenance area pay an added per-FTE maintenance fee on top.
Violations & Fines
Operating without a current license makes the fee delinquent; the City then collects the back fee plus a 5% penalty for each month or partial month it went unpaid.
Frequently Asked Questions
How is the Hillsboro business license fee calculated?
Do landlords pay the same fee as other businesses?
Sources & Official References
Other rules in Hillsboro
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Business Tax Classification in Nearby Cities
How other cities in Washington County handle business tax classification.