San Jose, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Who must have one
- All persons engaged in business in the city, unless excluded by the chapter
- Timing
- The certificate must be procured BEFORE commencing business
- Classification
- By NAICS code, the federal North American Industry Classification System
- Legal basis
- Measure G (Ord. 2016.2), adopted by the electorate 12-13-2016
- Term
- Annual certificate under section 4.76.240
- Display
- Posting or carrying required under section 4.76.310
- Transferability
- Not transferable under section 4.76.300
Summary
Everyone engaged in business in San Jose must obtain a business tax certificate before starting, and businesses are classified for tax purposes using their NAICS code.
A. There are hereby imposed upon all persons engaged in business in the city business taxes in the amounts hereinafter in this chapter prescribed. It shall be unlawful for any person to commence, transact or carry on any business in the city not excluded by this chapter without first having procured a business tax certificate from the city to do so, or without complying with any and all provisions ... "NAICS code" means the numerical classification for business activities established in the North American Industry Classification System.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 5 Update 3).
Full Breakdown
2), which the electorate adopted on December 13, 2016, so the current scheme is a voter-approved measure rather than an ordinary council ordinance. 170(A) states the obligation directly: business taxes are imposed on all persons engaged in business in the city in the amounts the chapter prescribes, and it is unlawful for any person to commence, transact or carry on a business in the city, unless excluded by the chapter, without first procuring a business tax certificate. The certificate comes before the business starts, not after.
095 defines the business tax simply as the tax due for engaging in business in San Jose. 120 define small business and small business owner. 230 covers concession-basis businesses. 300. 180 says so expressly.
Violations & Fines
Commencing, transacting or carrying on a business in San Jose without first procuring a business tax certificate is unlawful under section 4.76.170(A). Section 4.76.280 sets when taxes become delinquent, and section 4.76.290 sets the delinquency penalty along with a ninety-day grace period for new businesses; section 4.76.290.5 provides a separate grace period for new residential landlords. Penalties may be waived under section 4.76.295.
Frequently Asked Questions
Do I need a business tax certificate before I start trading in San Jose?
How does San Jose classify my business?
I run the same business at several San Jose locations: do I need multiple certificates?
Is there any grace period for a new business?
Sources & Official References
Other rules in San Jose
California rules heatmap·Compare San Jose to another location·View the California local taxes & fees overview
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Business Tax Classification in Nearby Cities
How other cities in Santa Clara County handle business tax classification.