San Francisco Business Tax Estimator
Estimates for tax year 2026 under Proposition M (effective January 1, 2025): a $5,000,000 small-business exemption cliff on the gross receipts tax, marginal tax brackets by business category, plus the 2026-27 annual business registration fee. Rates shown are the 2026 (2025 and 2026) schedule; higher rates take effect for 2027 and 2028.
Estimates use the San Francisco Office of the Treasurer & Tax Collector's Proposition M rate tables for tax years 2025 and 2026, and the 2026-27 business registration fee schedule. The $5M exemption is a cliff on global receipts; the registration fee applies regardless. We are not a government agency and are not liable for differences between these estimates and your final city tax bill. Rates current as of September 2026.
Business Taxes in San Francisco: The Honest 2026 Guide
San Francisco rebuilt its business tax with 2024's Proposition M, and the result has two headline features. First, a $5 million exemption cliff: if your total global gross receipts are $5 million or less, you owe $0 in gross receipts tax. Cross it, and the tax applies to your full San Francisco receipts, there is no phase-in. Second, marginal brackets by category: seven business categories, each with its own graduated rate table, so the rate climbs as receipts climb, bracket by bracket.
What San Francisco actually charges businesses in 2026
| Tax / fee | Current amount | Who pays it |
|---|---|---|
| Gross receipts tax | 0.100% to 3.360% marginal by category and bracket | Businesses with over $5M in global gross receipts |
| Small business exemption | $0 tax at $5M or less global receipts (cliff) | Everyone under the line; registration still required |
| Annual business registration fee | $55 to $60,000 by receipts tier, + $4 state fee | Every registered business, exempt or not |
The seven categories, in plain English
- Category 1: wholesale, retail, rental and leasing, arts and entertainment, food services, repair, personal services
- Category 2: accommodation (hotels)
- Category 3: real estate, facilities support, building services, parking
- Category 4: agriculture, mining, utilities, manufacturing, transportation and warehousing, insurance, biotech R&D
- Category 5: information, professional and technical services, management, education, healthcare, and most other activities. The catch-all most small businesses land in.
- Category 6: banking and financial services
- Category 7: construction
What that looks like in real numbers
- Consulting firm, $3M in SF receipts: under the $5M cliff, so $0 gross receipts tax + $1,885 registration + $4 = $1,889 a year.
- Same firm at $10M in SF receipts: $137,500 gross receipts tax (marginal brackets) + $2,000 registration + $4 = $139,504 a year. That is the cliff.
- Hotel, $6M in receipts (Category 2): $11,900 gross receipts tax + $800 registration + $4 = $12,704.
- Manufacturer, $60M in receipts (Category 1): $161,050 gross receipts tax + $40,000 registration + $4 = $201,054.
Two quirks worth knowing
First, the registration fee schedule has a genuine dip: $1,885 at $2.5M to $5M, then $800 at $5M to $7.5M, then back up to $2,000. That is the city's official schedule, not a typo, and the calculator reproduces it exactly. Second, the 2027 and 2028 rates are higher than the 2026 rates used here; the city has published those future tables, so check them for multi-year planning.
What this estimate leaves out
Very large businesses face additional taxes this calculator does not cover: the Homelessness gross receipts tax (over $25M in SF receipts), the Overpaid Executive Tax, the Commercial Rents Tax, and the Administrative Office Tax. If any of those might apply to you, talk to a tax professional.
Where to register and file
- Treasurer & Tax Collector, Proposition M: sftreasurer.org
- Business registration renewal: sftreasurer.org
Frequently asked questions
How much is a business license in San Francisco?
The annual registration fee runs $55 to $60,000 by receipts tier, plus a $4 state fee. The gross receipts tax is separate: $0 at $5M or less in global receipts, then marginal rates by category.
Is the $5 million exemption really a cliff?
Yes. There is no phase-in. At $5,000,000 or less in global receipts you owe no gross receipts tax; one dollar over and the tax applies to your full SF receipts through the marginal brackets.
Do I still register if I owe no tax?
Yes. The exemption zeroes the gross receipts tax, not the registration requirement or the registration fee.
What if my business spans categories?
You compute each category's receipts separately through its own bracket table. The calculator above handles one category; multi-category businesses should work through the city's filing instructions.
Will rates change?
Yes, upward. The 2025 and 2026 rates are identical, but higher rates take effect for tax years 2027 and 2028. We update this page as the city publishes changes.
Sources
Every figure on this page comes from an official city source, verified September 2026:
- Proposition M 2024 Business Tax Reform, rate tables - sftreasurer.org
- 2026-27 Business Registration Renewal Fee Schedule - sftreasurer.org
- Annual Business Registration and Tax Form 2025-27 ($5M exemption) - sftreasurer.org
Rates shown are the Proposition M schedule for tax years 2025 and 2026. Higher rates take effect for 2027 and 2028. Confirm your category and current rates with the Treasurer & Tax Collector before finalizing your business budget. Last updated September 2026.