Business License Tax Schedule & Prorating of Business License Taxes
Redwood City Business License Tax schedule
Effective July 1, 2025
Annual Registration Fee & Incremental Tax Rate* (Sec 32.152 & 32.154)
|
Business Category** |
Annual registration Fee |
Employee Count** |
Per employee rate |
|---|---|---|---|
|
General Commerce and Retail |
$90 | 1-3 | $5.00 |
|
$90 |
4-10 |
$25.00 | |
|
$90 |
11+ |
$40.00 | |
| Contractors |
$90
|
- | $75.00 |
| Services |
$90
|
- | $65.00 |
| Professional Services |
$90
|
First 3 employees | $88.00 |
|
$90
|
Employees 4-10 | $100.00 | |
|
$90
|
Employees 11+ | $125.00 | |
| Rental (Residential) |
$90
|
- | $31.00 per unit |
| Rental (Commercial) |
$90
|
- | $37.50 per 1,000 sf |
Maximum Tax for FY2025-2026 is $250,000 (Sec 32.155)
(Download [PDF] and save the Business License Tax schedule for you records)
Notes:
*The rates shall be phased-in over one year, such that only 50% of each rate shall be assessed effective July 1, 2025, but the full rate shall be assessed affective July 1, 2026 and thereafter. However, the rate of Rental (Residential) shall not be phased-in and shall be assessed at the full rate as of July 1, 2025. The rates above reflect the 50% of the assessment.
** The City will determine which Business Category the business would be classified under.
*** Persons Employed: Those engaged in the operation or conduct of any business, whether as owner, partner, manager, and all others employed or working in said business. The number of employees employed monthly within the City earing wages for periods nearest the fifteenth day of each month during the previous year as reported to the State Department of Employment. If the applicant has been in business less than on year, the average of number of employees shall be the number of employees divided by the number of months remaining in the calendar year for which such calculation is made. Please see the FAQs at www.RedwoodCity.org/BLT or contact us with questions.
Prorating of Business License Taxes (Sec 32.109) - based on its fiscal year (July through June):
a. Businesses commencing after September 30 of one year and before March 31 of the following year-the license tax shall be reduced by 25%.
b. Businesses commencing after March 31 and before June 30-the license tax shall be reduced by 75%.