2017 Tax Rates and Small Business Exemption Thresholds

2017 Tax Rates for the Gross Receipts Tax, Payroll Expense Tax, and Administrative Office Tax

Below, find the tax year 2017 tax rates for the gross receipts tax, payroll expense tax, and administrative office tax.  Note that the rates are listed both as a percentage and as a decimal in parenthesis.

Small Business Enterprise Thresholds

Gross Receipts Tax Rates

Payroll Expense Tax Rate

Administrative Office Tax Rate

 

 

Small Business Enterprise Thresholds

Payroll Expense Tax: Per Article 12-A Section 905-A(c) of the San Francisco Business and Tax Regulations Code, the 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 2017 and 2018 tax years shall be $300,000.  This finding  applies for the 2017 and 2018 tax years.  

Gross Receipts Tax: Per Article 12-A-1 Section 954.1(b) of the San Francisco Business and Tax Regulations Code, 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 $1,090,000 for tax year 2017.  This finding applies for the 2017 tax year.  

Gross Receipts Tax Rates

The table below summarizes the gross receipts tax rates for tax year 2016.  The gross receipts tax rate adjustment factor of 75% has been applied to all rates, per Code section 959.

Code Section 953 $0 to $1,000,000 $1,000,001 to $2,500,000 $2,500,001 to $25,000,000 $25,000,001 +

1

0.05625% (0.0005625)

0.07500% (0.0007500)

0.10125% (0.0010125)

0.12000% (0.0012000)

2

0.09375% (0.0009375)

0.15375% (0.0015375)

0.27750% (0.0027750)

0.35625% (0.0035625)

3

0.22500% (0.0022500)

0.24375% (0.0024375)

0.24375(0.0024375)

0.30000% (0.0030000)

4

0.39375% (0.0039375)

0.41250% (0.0041250)

0.45000% (0.0045000)

0.48750% (0.0048750)

5

0.22500% (0.0022500)

0.26250% (0.0026250)

0.30000% (0.002000)

0.33750% (0.0033750)

6

0.30000% (0.0030000)

0.34500% (0.002300)

0.38250% (0.0038250)

0.42000% (0.0042000)

 

$0 to $1,000,000

 

$1,000,001 to $5,000,000

$5,000,001 to $25,000,000

$25,000,001 +

7

0.21375% (0.0021375)

0.21375% (0.0021375)

0.22500% (0.0022500)

0.22500% (0.0022500)

 

 

 

 

 

 

 

 

 

 

 

Payroll Expense Tax Rate: 0.711% (0.00711)

The Controller has certified and published the payroll expense tax rate for tax year 2017 on August 25, 2017 in accordance with Code section 903.1 as 0.711% (0.00711) and published it here

Code section 6.9-3 specifies the estimated tax payment required each quarter. 

 

Administrative Office Tax Rate: 1.400% (0.01400)

The tax on administrative office business activities in lieu of the other taxes provided in Article 12-A-1 and Article 12-A is 1.400 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 administrative 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 administrative 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 953.8 for more information.