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Business Tax Rates

Employee Count

Businesses

 Effective up to June 30th

 Effective July 1, 2017

 Base Tax

 $150

 $195

 Employee Count¹

 FTE or EDD

 FTE or EDD

 Incremental Tax: 1-2

 $0

 $0

 Incremental Tax: 3-35

 $18 (9+) 2

 $30 3

 Incremental Tax: 36-100

 $18

 $40

 Incremental Tax: 101-500

 $18

 $50

 Incremental Tax:  501+

 $18

 $60

 Cap

 $25,000

 $150,000

1 Businesses elect between calculating the number of employees based on Full-Time Equivalent (“FTE”) or based on the number employers report to the California Employment Development Department (“EDD”).
2 Current tax adds a per employee rate at the ninth employee.
3 The per employee rate begins at the third employee rather than the ninth employee. 

Residential Rental Property Units

Residential Landlords:
Rental Units 1

Effective up to June 30th

 Effective July 1, 2017

 Base Tax

 $150

 $195

 Incremental Tax: 1-2

 N/A (Not Counted)2

 $0 (Base Tax applied)3

 Incremental Tax: 3-35

 $5 (31+)4

 $105

 Incremental Tax: 36-100

 $5

 $15

 Incremental Tax: 101-500

 $5

 $20

 Incremental Tax: 501+

 $5

 $25

 Cap

 $5,000

 $150,000


1 Maintains the exemption for rental housing owned by nonprofit organizations.
2 Current tax exempts residential landlords renting or leasing two or less rental units.
3 The base tax begins at the first rental unit rather than the third unit.
4 Current tax adds a per rental unit rate at the 31st unit.
5 The per rental unit rate begins at the third rental unit rather than the 31st unit. 

Commercial (Non-Residential) Rental Property Units

 Commercial Landlords

Effective up to June 30th

 Effective July 1, 2017

 Base Tax

 $150

 $195

 Tax per Square Foot

 $0.01 (15,000+)1

 $0.0252

 Cap

 $5,000

 $150,000


1 Current tax adds a square-foot rate at the 15,001st square foot.
2 The square-foot rate begins at the first square foot rather than the 15,001st square foot.
 
 

 Mobile Home Parks Rental Units

 Mobile Home Parks –
Rental Units

Effective up to June 30th

 Effective July 1, 2017

 Base Tax

 $150

 $195

 Incremental Tax: 1-2

 N/A (Not Counted)1

 $0 (Base Tax applied)2

 Flat Incremental Tax

 $5 (31+)3

 $104

1 Current tax exempts mobile home parks renting or leasing two or less rental units.
2 The base tax begins at the first rental unit rather than the third unit.
3 Current tax adds a per rental unit rate at the 31st unit.
4 The per rental unit rate begins at the third rental unit rather than the 31st unit.

Water Meter Connections

 Water Companies

Effective up to June 30th

 Effective July 1, 2017

 Base Tax

 n/a

 $1951

 Flat Incremental Tax

 $0.10-0.30 per connection

 $1.00 per connection2

 Cap

 $20,000

 $150,000


1 Apply the Base Tax.
2 Rate changed from a range of connections to a per-connection rate.

Out of Town Business Tax Rate Schedule

If you conduct business in San Jose but your business is not physically located in San Jose, the tax is pro-rated based on the average number of working days in San José within the calendar year.

1-5 days
 

6-29 days
(25%)

30-89 days
 (37.5%)

90-119 days
(50%)

120+ days
(100%)

 Base Tax

$0

$48.75

$73.13

$97.50

$195

 Incremental Tax: 1-2

 $0

$0

$0

$0

$0

 Incremental Tax: 3-35

 $0

$7.50

$11.25

$15

$30

 Incremental Tax: 36-100

 $0

$10

$15

$20

$40

 Incremental Tax: 101-500

 $0

$12.50

$18.75

$25

$50

 Incremental Tax: 501+

 $0

$15

$22.50

$30

$60

 Cap

 $0

$150,000

$150,000

$150,000

$150,000