Palm Springs, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax bases
- Fixed fee, graduated scale, graduated w/minimum, or gross receipts
- Graduated scale range
- $50/yr (1-2 employees) to $400 + $5/extra employee
- Out-of-town surcharge
- Double the minimum fee, or $100/yr default
- Unlisted businesses
- Default to the graduated employee-count scale
- Employee count basis
- Greatest number working in any 24-hour period
- Continuing violation
- Each unlicensed business day is a separate offense
Summary
Palm Springs sorts every business into one of four license tax bases: a fixed fee, the graduated employee-count scale, a graduated scale with a set minimum, or gross receipts. Most unlisted businesses default to the graduated scale, which runs from $50 a year for one or two employees up to $400 plus $5 per employee over fifty.
Whenever in Chapters 3.40 through 3.96 the term "graduated scale" is used it refers to the following basis of license tax computation; and whenever a license tax is to be computed on the basis of "graduated scale," it shall be computed on the basis of the number of employees utilized in the conduct of the business, with rates as follows: Employees Per Year 1 or 2 $ 50.00 3 to 6 100.00 7 to 10 150.00 11 to 14 200.00 15 to 20 250.00 21 to 30 300.00 31 to 40 350.00 41 to 50 400.00 51 or more employees $400.00, plus $5 for each employee over fifty.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4923139; v14 updated 2026-06-24).
Full Breakdown
96 assigning the specific basis and rate to each named business category. 020 clarifies that a single license covers all the activities customarily associated with the licensed business. 030 requires them to pay twice the applicable minimum fee, or $100 a year where no minimum is prescribed, except for contractors already licensed by the state under Business and Professions Code Chapter 9. 96 to the graduated scale. 050, runs by employee count: $50 a year for one or two employees, $100 for three to six, $150 for seven to ten, $200 for eleven to fourteen, $250 for fifteen to twenty, $300 for twenty-one to thirty, $350 for thirty-one to forty, $400 for forty-one to fifty, and $400 plus $5 for each employee beyond fifty for businesses with fifty-one or more.
060 defines "number of employees" for this computation as the greatest number of individuals working in the business during any 24-hour period within the license term, excluding an abnormal, short-lived spike tied to a special event.
Violations & Fines
Conducting business in Palm Springs without paying the applicable license tax, or operating under the wrong classification, is punishable under Municipal Code Chapters 1.01 and 3.64 per Section 3.76.010, and each day a business operates without complying with Chapters 3.40 through 3.96 counts as a separate violation under Section 3.76.020, so an unlicensed business accrues a new offense daily until it comes into compliance.
Frequently Asked Questions
How does Palm Springs decide what license tax a business pays?
What tax does a business pay if it isn't specifically listed in the code?
Do businesses based outside Palm Springs pay a different license tax?
How is "number of employees" counted for the graduated scale?
Sources & Official References
Other rules in Palm Springs
California rules heatmap·Compare Palm Springs to another location·View the California local taxes & fees overview
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