Commercial Vacancy Tax (VT)

The Commercial Vacancy Tax was approved by San Francisco voters on March 3, 2020 and became effective on January 1, 2022.  The Commercial Vacancy Tax is a tax on keeping certain commercial space vacant for more than 182 days (approximately six months) in a calendar year. For most entities, filing and payment of the Commercial Vacancy Tax will begin in 2023. 

To learn more about the Commercial Vacancy Tax, view a recording  of our webinar and download the presentation (Español     Filipino     中文 ).

For purposes of the Commercial Vacancy Tax, Taxable Commercial Space is defined as the ground floor of any building or portion of a building where the ground floor is all of the following:

  1. Located in one of the Named Neighborhood Commercial Districts or Named Neighborhood Commercial Transit Districts, as they existed on March 3, 2020; and
  2. Adjacent or tangent to a Public Right of Way (i.e., facing the street); and
  3. Not Residential Real Estate.


Map of Districts that may be Covered by the Commercial Vacancy Tax

This map is for estimation purposes only. Click on map to move or zoom. 

The Commercial Vacancy Tax is payable by:

  1. The owner of the space, provided that the space is not leased;
  2. The lessee of the space, provided that the space is not subleased; and
  3. The sublessee of the space if the space is subleased.

Each owner, lessee, and sublessee of Taxable Commercial Space in the City is required to file a Commercial Vacancy Tax Return annually, regardless of whether the owner, lessee, or sublessee has kept the Taxable Commercial Space vacant, and regardless of whether another owner, lessee, or sublessee is liable for the tax. 

To understand the Commercial Vacancy Tax filing requirements, the Office of the Treasurer and Tax Collector will waive penalty for failure to timely file the Commercial Vacancy Tax returns for tax years 2022 and 2023. However, business owners and property owners will still owe any tax amounts due (with penalties, if applicable), but there will be no late filing penalty if they forget to file for tax years 2022 and 2023. 

San Francisco’s Business and Tax Regulations Code generally requires that every person owning or leasing a property within San Francisco for business purposes must register with the Office of the Treasurer and Tax Collector. Check DataSF to see if your business is already registered or register your business here.  

The Commercial Vacancy Tax rate is calculated based on a building’s frontage (the total length of commercial space facing the Public Right of Way) and the number of consecutive calendar years beginning in 2022 that the Taxable Commercial Space is kept vacant by any person for more than 182 days.

Calendar Years Vacant

Rate per linear foot of frontage

1st year*


2nd year


3rd year or more


*beginning in 2022

If a lessee has operated a business in Taxable Commercial Space for more than 182 consecutive days during a lease of at least two years, the lessee will not be liable for the Commercial Vacancy Tax for the remainder of that lease, regardless of whether the space is vacant.

Additionally, any organization that is exempt from income taxation under Internal Revenue Code Section 501(c)(3) is exempt from the Commercial Vacancy Tax.

However, the owner, lessee, or sublessee of a Taxable Commercial Space must file a Commercial Vacancy Tax return regardless of whether they are exempt from paying the Commercial Vacancy Tax or other taxes.

Taxable Commercial Space is considered kept vacant if it’s unoccupied, uninhabited, or unused for more than 182 days, whether consecutive or nonconsecutive, in a calendar year.

Taxable Commercial Space will NOT be considered kept vacant during the following periods, if applicable to you for that space:

  • Building Permit Application Period – the period between the date that the first application for a building permit for repair, rehabilitation, or construction is filed and the date that the Department of Building Inspection grants or denies that application.   This period may not exceed one year, and if more than one application is filed for the same Taxable Commercial Space, only the first application will trigger a Building Permit Application Period.
  • Construction Period – a one-year period after the city issues the first building permit for repair, rehabilitation, or construction.  If more than one such permit is issued, only the issuance of the first building permit will trigger this one-year period.
  • Conditional Use Application Period – the 183-day period after the first complete application for a conditional use permit is filed. If the Planning Commission has not granted or denied the application within 183 days, this period is extended to December 31 of the year in which 183 days from the application filing date falls.  If more than one complete conditional use permit application is filed, only the first complete application will trigger this Conditional Use Application Period.
  • Disaster Period – the two-year period following the date that a Taxable Commercial Space is severely damaged and made uninhabitable or unusable because of fire, natural disaster, or other catastrophic event.

The Board of Supervisors passed a legislation to permit the Office of the Treasurer and Tax Collector to disclose certain Commercial Vacancy Tax information to the public. The following information collected from the Commercial Vacancy Tax return will be made available to the public via DataSF:

  • Name of the person(s) required to file a Commercial Vacancy Tax and whether each person filed;
  • Name of the person(s) required to pay the Commercial Vacancy Tax;
  • The address and block and lot number of the taxable commercial space;
  • If the taxable commercial space was kept vacant during a tax year; and
  • The commercial vacancy tax rate applicable to the taxable commercial space for a tax year.

Article 29: Vacancy Tax Ordinance

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