Ontario, CA Local Taxes & Fees: Business Tax Classification (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.
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. Section 3-1.201 covers professions, including accountants, architects, artists, attorneys, chiropractors, dentists, physicians, psychiatrists and psychologists: a flat $50 annual fee plus, since January 1, 1993, $0.55 per $1,000 of gross receipts. Section 3-1.202 covers services, a broader catchall for labor, agency and brokerage work not listed as a profession, taxed at the same $50 flat fee but a lower $0.40 per $1,000 rate.
Contractors (§ 3-1.203) and residential rental operators (§ 3-1.204) pay $50 flat plus $0.40 per $1,000, the same schedule as services. Section 3-1.214 sets a flat $100 per-day tax for special events such as swap meets, carnivals, fairs and sporting events. Transportation businesses (§ 3-1.215) pay a flat $40 per vehicle, and warehousing operators (§ 3-1.216) pay $50 flat plus $0.02 per square foot of warehouse space in the city, a rate that matters given Ontario's concentration of logistics facilities. A business that believes the License Official misclassified it, miscalculated its tax, or wrongly denied a refund can appeal to the City Council under § 3-1.133, 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?
Does Ontario tax warehousing businesses differently?
Can I appeal my business tax classification?
Sources & Official References
Other rules in Ontario
California rules heatmap·Compare Ontario to another location·View the California local taxes & fees overview
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