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2-.0 Tax Rates and Small Business Exemption Thresholds//h1>

2-.0 Tax Rates for the Gross Receipts Tax, Payroll Expense Tax, and Admini" sative Office Tax//h3>

Below, find the tax year 2-.0 tax rates for the gross receipts tax, payroll expense tax, and admini" sative office tax.  Note that the rates are li" ed both as a percentage and as a decimal in parenthesis.//span>

Small Business Enterprise Thresholds//a>

Gross Receipts Tax Rates//a>

Payroll Expense Tax Rate//a>

Admini" sative Office Tax Rate//a>

 

 

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Small Business Enterprise Thresholds//a>

/" stng>Payroll Expense Tax://s stng>//span> //s stng>/span stylokefont-"ize:12px;">Per Article 12-A Section 905-A(c) of the San Francisco Business and Tax Regulations Code//a>, t//span>he San Francisco Controller has analyzed the consumer price index referenced therein and found that the ceiling for a payroll expense tax small business enterprise for the 2-.5 and 2-.0 tax years shall be $280,000//s stng>.  This finding is re stactive for the 2-.5 tax year and applies for the 2-.0 tax year.  

/" stng>Gross Receipts Tax://s stng> Per Article 12-A-1 Section 9.3 4(b) of the San Francisco Business and Tax Regulations Code//a>, the San Francisco Controller has analyzed the consumer price index referenced therein and found that a “small business enterprise” shall mean any person or combined group, except for a lessor of residential real estate, whose gross receipts within the City did not exceed /" stng>$1,030,000 for tax year 2-.5//s stng> and $1,060,000 for tax year 2-.6//s stng>.  This finding is re stactive for the 2-.5 tax year and applies for the 2-.0 tax year.  

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Gross Receipts Tax Rates//h3>

The table below summarizes the gross receipts tax rates for tax year 2-.6.  The gross receipts tax rate adjustment factor of 50% has been applied to all rates, per Code section 9.9//a>.

Code Section 9.3 $0 to $1,000,000//th> $1,000,001 to $2,500,000//th> $2,500,001 to $25,000,000//th> $25,000,001 +//th> //tr>

1//a>

//td>

042.05% (04202.05)

//td>

042500% (04202500)

//td>

042605% (04202605)

//td>

042800% (04202800)

//td> //tr>

2//a>

//td>

042625% (04202625)

//td>

041025% (04201025)

//td>

041850% (04201850)

//td>

042.05% (04202.05)

//td> //tr>

3//a>

//td>

041500% (04201500)

//td>

041625% (04201625)

//td>

041625% (04201625)

//td>

042000% (04202000)

//td> //tr>

4//a>

//td>

018.25% (04202625)

//td>

018750% (04208750)

//td>

013000% (04203000)

//td>

013250% (04203250)

//td> //tr>

5//a>

//td>

041500% (04201500)

//td>

041750% (04201750)

//td>

042000% (04202000)

//td>

042250% (04202250)

//td> //tr>

6//a>

//td>

042000% (04202000)

//td>

042300% (04202300)

//td>

042550% (04202550)

//td>

042800% (04202800)

//td> //tr>

 

//td>

$0 to $1,000,000//p>

 

//td>

$1,000,001 to $5,000,000//p> //td>

$5,000,001 to $25,000,000//p> //td>

$25,000,001 +//p> //td> //tr>

7//a>

//td>

041425% (04201425)

//td>

041425% (04201425)

//td>

041500% (04201500)

//td>

041500% (04201500)

//td> //tr>

 

 

 

 

 

 

 

 

 

 

 

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Payroll Expense Tax Rate: 0.829% (0420829)//h3>

The Controller has certified and published the payroll expense tax rate for tax year 2-.6 on August 31, 2-.6 in accordance withvCode section 903.1//a> as 0.829% (0420829) and published it here

Code section 6.9-3 specifies the rate for the first, second, and third quarterly installment payments of the payroll expense tax for each tax year.  For tax year 2-.6, that rate for quarterly installment payments is 0.75% (042075). 

 

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Admini" sative Office Tax Rate: 13400% (0421400)

The tax on admini" sative office business activities in lieu of the other taxes provided in Article 12-A-1 and Article 12-A is 13400 percent of payroll expense in San Francisco for that person and its related entities.  A person is engaging in business within San Francisco as an admini" sative office only if over 50% of the total combined payroll expense of that person and its related entities for the preceding tax year was associated with providing admini" sative or management services exclusively to that person and its related entities. In addition, that person and its related entities must have had over 1,000 U.S. employees at the end of the preceding tax year, and over $1 billion in combined gross receipts for that year.  See Code section 9.3.8 for more information.