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

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

Key Facts

Professions rate
$50 flat + $0.55 per $1,000 gross receipts
Services/contractors/rental rate
$50 flat + $0.40 per $1,000 gross receipts
Special events
$100 flat daily tax
Transportation
$40 flat per vehicle annually
Warehousing
$50 flat + $0.02 per square foot
Appeals body
City Council, per § 3-1.133

Summary

Ontario Municipal Code § 3-1.201 taxes every profession operating in the city under Article 2's per-classification business license scheme: a $50 flat fee plus $0.55 per $1,000 of gross receipts, with separate flat and per-unit rates set for services, contractors, residential rental, transportation and warehousing businesses under the neighboring sections.

Every person engaged in a professional business in the City shall pay an annual business license tax to the City consisting of a flat tax of Fifty Dollars ($50.00) plus an additional tax for each calendar year or part of a calendar year based upon the gross receipts within such year or part of year at the rate of Forty Cents ($.40) per One Thousand Dollars ($1,000.00) of gross receipts. Effective January 1, 1993, the additional tax shall be computed and paid at the rate of Fifty Five Cents ($.55) per One Thousand Dollars ($1,000.00) of gross receipts.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-32: Current through Ordinance 3338, passed 7-21-2026).

Full Breakdown

The City of Ontario does not tax every business at one flat rate. Article 2 of Chapter 1, Title 3 sets a separate business license tax formula for each classification a business falls into, and the License Official determines which classification applies when an applicant registers. 55 per $1,000 of gross receipts. 40 per $1,000 rate. 40 per $1,000, the same schedule as services. 214 sets a flat $100 per-day tax for special events such as swap meets, carnivals, fairs and sporting events. 02 per square foot of warehouse space in the city, a rate that matters given Ontario's concentration of logistics facilities. 133, following the hearing procedure in Chapter 4 of Title 1.

Violations & Fines

Operating without paying the tax for your correct classification, or misclassifying gross receipts to claim a lower rate, exposes a business to the license revocation process under § 3-1.132: after a hearing, the License Official can revoke the license, and all activity requiring it must stop immediately. Disputed classifications, refunds, or penalty amounts go to the Council on appeal under § 3-1.133.

Frequently Asked Questions

What business tax rate does Ontario charge a professional office?
Under Ontario Municipal Code § 3-1.201, a professional business, meaning accountants, architects, attorneys, dentists, physicians, psychiatrists and similar licensed practices, pays a flat $50 annual business license tax plus $0.55 for every $1,000 of gross receipts, a rate that has applied since January 1, 1993 under Ordinance 2526.
Does Ontario tax warehousing businesses differently?
Yes. Section 3-1.216 sets a distinct rate for warehousing: a $50 flat fee plus $0.02 per square foot of warehouse space located in the city, rather than the gross-receipts formula used for professions, services and contractors. Given Ontario's large logistics sector, this per-square-foot rate applies to a substantial share of local business licenses.
Can I appeal my business tax classification?
Yes. Section 3-1.133 lets a business appeal any License Official determination about its classification, a refund, or the amount of tax, interest or penalties owed, to the City Council, following the appeal procedure set out in Chapter 4 of Title 1 of the Municipal Code.

Sources & Official References

Other rules in Ontario

All Ontario rules

California rules heatmap·Compare Ontario to another location·View the California local taxes & fees overview

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