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Santa Clara, CA Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Base tax rate
$45.00 per employee per year
Annual cap
$350,000 per business
Effective date of current rate
July 1, 2023
Out-of-town business tier
25%/50%/100% by days worked in city
Rental unit tax
$15 per unit (3+ units required)
Records retention
3 years, subject to City audit

Summary

Every person doing business in Santa Clara pays an annual business tax based on employee count: $45 per employee since July 1, 2023, capped at $350,000 a year, under SCCC § 3.40.360. Businesses without a fixed location that send workers into the city for six or more days a year are taxed on a separate percentage schedule tied to how many days they operate in town.

From and after July 1, 2023, every person engaged in business in the city, whether or not at a fixed place of business in the city, shall annually pay to the Director a minimum business tax of forty-five dollars ($45.00) per employee, not to exceed a cap of three hundred fifty thousand dollars ($350,000.00) per year, subject to annual adjustments set forth in SCCC § 3.40.160.

View official code

Full Breakdown

040(b)). 070). 370). 390). 450).

Violations & Fines

Conducting business without a valid certificate, or without complying with chapter regulations, is a separate violation for each day the business operates unlicensed (SCCC § 3.40.310(a)). The City may pursue enforcement as a criminal, civil or administrative action under SCCC § 1.05.070, and the Director may ask the City Attorney to sue in the City's name to recover unpaid tax plus penalties (SCCC § 3.40.320). Police officers and City inspectors may enter any place of business during reasonable hours to demand exhibition of the certificate (SCCC § 3.40.330).

Frequently Asked Questions

How much is Santa Clara's business tax?
A minimum of $45 per employee annually for businesses with a fixed place of business in the city, capped at $350,000 per year, effective July 1, 2023, per SCCC § 3.40.360. The amount adjusts annually under SCCC § 3.40.160.
Do out-of-town businesses pay a different rate?
Yes. Businesses without a Santa Clara location whose employees work in the city 6 or more days a year pay a percentage of the standard tax: 25% for 6-64 days, 50% for 65-129 days, and 100% for 130 or more days worked in the city, under SCCC § 3.40.370.
Is landlord rental income taxed the same as other businesses?
No. Landlords renting three or more units pay a flat $15 per unit per year instead of the per-employee schedule, plus a mediation services surcharge set by City Council resolution, under SCCC § 3.40.380 and § 3.40.390.

Sources & Official References

Other rules in Santa Clara

Fence Regulations: Height LimitsSome RestrictionsParking Rules: RV & Boat ParkingSome RestrictionsFence Regulations: Fence Permit RequirementsSome RestrictionsFire Regulations: Smoke DetectorsSome RestrictionsBusiness Licensing & Operations: Auto Repair on Residential PropertyHeavy RestrictionsHome Business: Customer Traffic RestrictionsSome Restrictions

All Santa Clara rules

California rules heatmap·Compare Santa Clara to another location·View the California local taxes & fees overview

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Business Tax Classification in Nearby Cities

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