San Diego business license
City of San Diego business tax certificate rules
- A business with 12 or fewer employees pays $38 a year, plus $1.47 for each employee (2026).
- The Office of the City Treasurer adds a late fee to applications received 15 days after the start date.
- Businesses operating without the certificate pay a $68 surcharge at 12 or fewer employees and $250 at 13 or more (2026).
The Office of the City Treasurer issues the San Diego business license as a Business Tax Certificate to every business operating inside city limits, home-based ones included. A Convoy Street restaurant, a Hillcrest consultant working from a spare bedroom and a plumber driving in from Santee all need one.
San Diego business license fees
| Head count | Annual business tax (2026) | Total with $4 state fee |
|---|---|---|
| 12 or fewer employees | $34 | $38 |
| 13 or more employees | $125 plus $5 per employee | $129 plus $5 per employee |
The Office of the City Treasurer also charges employers a minimum wage enforcement fee of $1.47 per employee each year, in force since July 1, 2025.
Businesses need a separate certificate for each branch or location under Municipal Code section 31.0130. Businesses inside one of the city's 18 Business Improvement Districts pay the district assessment with the tax (2026).
Owners and managers of residential rentals in the city pay a separate San Diego rental unit business tax.
A Pacific Beach cafe with 15 employees, filing on time and outside a Business Improvement District, pays $226.05 a year (2026).
| Charge | Calculation | Amount |
|---|---|---|
| Business tax | $125 plus 15 x $5 | $200.00 |
| SB 1186 state fee | Flat fee | $4.00 |
| Minimum wage enforcement fee | 15 x $1.47 | $22.05 |
| Total | $226.05 |
How to get a business license in San Diego
- Confirm the activity is allowed at the address on the Development Services Department zoning page, because applicants self-certify zoning.
- Apply online after creating an account, or mail the application with a check payable to City Treasurer to: Office of the City Treasurer, Business Tax Program, PO Box 122289, San Diego, CA 92112-2289
- Allow up to two weeks for processing, then post the certificate at the premises or carry it when the business has no fixed location.
The late fee on a San Diego business license is $25 or 10 percent of the amount owed, whichever is greater (2026). The city adds 1 percent a month to past-due balances from one calendar month after the due date, and bills up to three years back.
Sellers of taxable goods also need a seller's permit from the California Department of Tax and Fee Administration (CDTFA) and charge the San Diego sales tax rate. Owners trading under another name file a fictitious business name in San Diego with the County Clerk.
City of San Diego business license renewal
Owners renew the certificate by paying the City's annual billing statement online with an Online Account Number. Owners whose employee count, business activity or location has changed pay by mail or in person instead.
The Office of the City Treasurer sends renewal notices only as a courtesy, and owners can sign up for electronic billing to get reminders.
San Diego County business license
There is no San Diego County business license for unincorporated areas such as Ramona and Lakeside, though the Sheriff's License and Criminal Registration Division regulates some trades there. Owners in those areas may still need other county permits.
The county's other 17 cities each issue their own business license. Read the full guide for:
- Chula Vista business license
- Escondido business license
- Carlsbad business license
- Oceanside business license
El Cajon, La Mesa, San Marcos, National City and Vista license businesses through these offices:
| City | Issuing office | Home businesses | Apply |
|---|---|---|---|
| El Cajon business license | Finance Department, Business License Division | License plus a Home Occupation Permit | Apply |
| La Mesa business license | Finance Department, Business Licensing | Home Occupation license, applied for in person at City Hall | Apply |
| San Marcos business license | Finance, business license team | Home-based license, applied for online | Apply |
| National City business license | Finance Department, Revenue Management | License plus a Home Occupation Permit | Apply |
| Vista business license | Business License Office | License plus a Home Occupation Permit | Apply |
CPA help with San Diego business tax
Owners with locations in two or more cities, or a back bill for three years of tax and penalties, can hand the reconciliation to a CPA. Start with how to choose a CPA.