Pasadena, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- General business tax
- $75/yr + $15/employee over 1
- Professional tax
- $200 first pro + $100 each additional
- Take-out service tax
- $155.98 + $31.20/employee
- General license year starts
- September 1
- Professional license year starts
- April 1
- Unlicensed operation penalty
- up to $1,000 fine / 6 months jail
Summary
Pasadena sorts every business into a tax class under Municipal Code Chapter 5.16, and the rate depends on which one applies. General retailers, wholesalers, manufacturers and utilities pay $75 a year plus $15 per employee beyond one, while professionals, service firms, take-out eateries and coin machine operators follow separate schedules in the same chapter.
Every person engaged in the business of retailing, merchandising, wholesaling, manufacturing, processing, distributing, warehousing or utility services, not otherwise specifically provided for in Chapters 5.04 through 5.16 nor exempt from the provisions of this title, shall pay for each place of business an annual business license tax of $75.00 plus $15.00 for each employee in excess of 1. The license year shall commence September 1st.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 79 Update 2).
Full Breakdown
00 for every employee beyond the first, on a license year that starts September 1st. 00 per nonprofessional employee, on a license year starting April 1st; an out-of-city physician admitting fewer than ten patients annually to city hospitals pays only 33% of that standard professional rate. 00-per-employee rate as general business. 025. 00, or a flat per-machine fee tied to the coin denomination accepted. 16.
Violations & Fines
Section 5.16.010 makes it unlawful to engage in business in Pasadena without first procuring the license required by the applicable classification. Because Chapter 5.16 does not set its own penalty, the citywide misdemeanor default in Section 1.24.020 applies: a fine of not more than $1,000.00, imprisonment of not more than six months, or both, unless another ordinance prescribes a different punishment.
Frequently Asked Questions
How is a Pasadena business license tax calculated?
When does Pasadena's business license year begin?
What happens if I operate without a Pasadena business license?
Sources & Official References
Other rules in Pasadena
California rules heatmap·Compare Pasadena to another location·View the California local taxes & fees overview
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How other cities in Los Angeles County handle business tax classification.