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

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

Key Facts

Classification A (wholesale/auto)
$20 min + $1.00/$1,000 over $20,000
Classification B (retail/general)
$22 min + $1.10/$1,000 over $20,000
Classification E (professional services)
$33 min + $1.65/$1,000 over $20,000
Classification G (general contractor)
$93.50 min + $1.10/$1,000 over $85,000
Late penalty
20% plus 10%/month, capped at 50%

Summary

Inglewood taxes most businesses on gross receipts under a lettered classification system, § 8-23 et seq., that runs A through L. A wholesale/auto seller pays a $20 minimum plus $1 per $1,000 of receipts over $20,000; retail and general service businesses pay $22 plus $1.10 per $1,000 over $20,000.

§ 8-23. Tax Rates Based on Gross Receipts. Every person who engages in any of the businesses categorized in this Article shall pay a business tax on the gross receipts of such business at the rate or rates designated in this Article. § 8-23.1. Classification "A" Wholesale Sales and Automobile Sales. Manufacturing and selling at wholesale or sales at wholesale, and sales of automobiles subject to California sales tax. Minimum tax, $20 for any part of the calendar year plus one dollar ($1.00) for each $1,000 or fraction thereof of gross receipts above $20,000. § 8-23.2. Classification "B" Retail Sales, General Services and Other Businesses. Manufacturing and selling at retail, sales at retail, general services and businesses not specifically included in another classification. Minimum tax, $22 for any part of the calendar year plus one dollar and ten cents ($1.10) for each $1,000 or fraction thereof of gross receipts above $20,000.

Full Breakdown

Municipal Code § 8-23 sets the baseline rule: every person engaged in a business categorized in Article 2 of Chapter 8 pays a business tax on gross receipts at the rate designated for that classification. The classifications are lettered and each carries its own minimum tax and marginal rate. 00 for each $1,000, or fraction of it, of gross receipts above $20,000. 10 per $1,000 of gross receipts above $20,000. 10 per $1,000 over a higher $85,000 threshold, reflecting the larger receipts typical of construction work.

50 per $1,000 over $50,000. Businesses that do not fit a gross-receipts classification are instead taxed on a flat-rate basis under the separate schedule beginning at § 8-24, which prices specific activities like billboard advertising and coin-operated amusement devices per unit rather than by receipts. The rates and thresholds were largely set by Ordinance 2450 (1983) and Ordinance 91-16 (1991) and have not been indexed since.

Violations & Fines

Failure to pay the classification tax due exposes an operator to the general Chapter 8 penalty under § 8-2: 20% of the unpaid tax plus an additional 10% for every calendar month it remains unpaid after a citation, capped at 50% of the tax owed, collected the same way as other business taxes. Carrying on a business without paying the tax due is a misdemeanor and the unpaid amount is a debt to the City that survives a conviction; the business tax exists to raise revenue and does not itself authorize the business's operation, which still needs any zoning or permit approval that applies.

Frequently Asked Questions

How does Inglewood calculate business tax for a retail store?
Retail sales fall under Classification "B" in § 8-23.2: a $22 minimum tax for any part of the calendar year, plus $1.10 for each $1,000, or fraction of it, of gross receipts above $20,000.
Is Inglewood's business tax based on profit or gross receipts?
Gross receipts. Section 8-23 taxes every classified business on its gross receipts at the rate set for that classification, not on net income or profit.
What happens if I don't pay my Inglewood business tax on time?
Section 8-2 adds a 20% penalty immediately, plus another 10% for each month it stays unpaid after a citation issues, capped at 50% of the tax due, and carrying on the business unpaid is a misdemeanor.
Do contractors pay a different business tax rate than retailers in Inglewood?
Yes. General building contractors fall under Classification "G" (§ 8-23.7) with a $93.50 minimum plus $1.10 per $1,000 above an $85,000 threshold, a higher floor than the $22 minimum retailers pay under Classification "B."

Sources & Official References

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