Skip to main content
CityRuleLookup
Key FactsOrdinance TextFull BreakdownViolationsFAQSourcesMore in San Francisco

San Francisco, 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 basis
NAICS code of the business activity
Number of categories
7 (Sections 953.20-953.26)
Enacted by
Proposition M, eff. 12/20/2024
Multi-activity businesses
Taxed separately per category

Summary

San Francisco sorts every business into one of seven gross receipts tax categories by NAICS code, and the category sets your tax rate.

“Category 1 Business Activities” means one or more of the business activities described in NAICS codes 42 (Wholesale Trade), 44 and 45 (Retail Trade), 532 (Rental and Leasing Services), 71 (Arts, Entertainment, and Recreation), 722 (Food Services and Drinking Places), 811 (Repair and Maintenance), 812 (Personal and Laundry Services) but not including 812930 (Parking Lots and Garages), and 813 (Religious, Grantmaking, Civic, Professional, and Similar Organizations).

(c)   The amount of taxable gross receipts from Category 1 Business Activities subject to the gross receipts tax shall be three-quarters of the amount determined under Section

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-96: Codes: last updated to include changes made by legislation through Ordinance 133-26, File No. 260686, approved July 23, 2026, effective August 23, 2026).

Full Breakdown

The Business and Tax Regulations Code assigns each business to one of seven numbered categories (Category 1 through Category 7) based on its North American Industry Classification System (NAICS) code, and each category carries its own gross receipts tax rate schedule under Sections 953.20 through 953.26. Category 1, for example, covers wholesale trade, retail trade, rental and leasing services, arts and entertainment, food services, repair and maintenance, and similar personal services. A business with activities spanning multiple categories has its tax computed separately for each set of activities under Section 953.9's aggregation rules (for pre-2025 tax years) or the category-specific rules effective for 2025 and later.

Violations & Fines

Misclassifying a business under the wrong NAICS-based category to obtain a lower rate can result in a deficiency assessment, penalties, and interest from the Office of the Treasurer & Tax Collector.

Frequently Asked Questions

How does San Francisco decide which tax category a business falls into?
By NAICS code. Section 953.20(b) lists the specific NAICS codes -- such as 44/45 for retail trade -- that fall into Category 1, and Sections 953.21-953.26 do the same for Categories 2 through 7.
What if a business has activities in more than one category?
Each set of activities is taxed separately under the rules for its own category, per Section 953.9 and the category sections themselves, rather than picking a single blended rate.

Sources & Official References

Other rules in San Francisco

Noise Ordinances: Construction HoursSome RestrictionsVacancy TaxSignificant RestrictionsParking TaxSome RestrictionsParking Rules: Towing & Impound RightsSignificant RestrictionsParking Rules: Driveway RulesSome RestrictionsParking Rules: Abandoned VehiclesSome RestrictionsParking Rules: Curb Color RulesSome RestrictionsParking Rules: Commercial & Oversized VehiclesSome Restrictions

All San Francisco rules

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

Get notified when Business Tax Classification in San Francisco, CA changes

We'll email you the moment we detect a change in the code. No spam, unsubscribe anytime.

We'll never sell or share your email. One-click unsubscribe in every email.

See something wrong?

Help us keep this page accurate. If you notice an error or outdated information, let us know.