Proposition F was approved by San Francisco voters on November 3, 2020 and became effective January 1, 2021. Proposition F eliminates the City’s Payroll Expense Tax and gradually raises the Gross Receipts Tax rates across most industries while temporarily lowering those rates for some small businesses in certain industries. Proposition F will complete the City’s transition away from payroll taxes.
Eliminates the Payroll Expense Tax (filed in 2022 for tax year 2021)
- Increases the Small Business Exemption ceiling to $2 million
- Decreases the Business Registration Fee for most businesses with San Francisco gross receipts up to $1 million
- Increases the Business Registration Fee for most businesses with San Francisco gross receipts of $1- $2 million See more.
- Modifies Gross Receipts Tax Rates. See 2021 rates.
Small Business Exemption:
Proposition F expands the small business exemption ceiling from $1.2 million to $2 million. For 2021, most businesses other than lessors of residential real estate that have San Francisco gross receipts of $2 million or less:
- Must renew their annual Business Registration
- Do NOT need to file their Annual Business Tax Return or pay Gross Receipts Tax
Temporary Gross Receipts Tax Rate Reductions for Certain Industries:
Certain industries hit hard by the coronavirus pandemic and related shutdowns may temporarily be subject to lower gross receipts tax rates than in 2020. Those industries include:
- Retail Trade;
- Certain Services;
- Food Services;
- Arts, Entertainment and Recreation
Calculating Quarterly Payments:
Your April 30, 2021 quarterly estimated payment reflected in our system will be based on your 2020 Annual Business Tax Return filing and will be displayed in the payment portal within 24 hours of completing your 2020 filing. You may pay the lesser of:
- The amount displayed in the payment portal; or
- An amount equal to 25% of your Business Taxes due for 2021, which may be $0.
More detail on how to calculate your estimated payments.
Small Business Exemption & Payroll Impact*:
Tax and Fee Rates
Gross Receipts Tax rates vary depending on a business' gross receipts and business activity.
Retail Trade; and Certain Services
Manufacturing; and Food Services
|Transportation and Warehousing; Bio-Technology; and Clean Technology||0.175%||0.287%||0.518%||0.665%|
Accommodations; and Arts Entertainment and Recreation
Private Education and Health Services; Administrative and Support Services; and Miscellaneous Business Activities
Financial Services; Insurance; Information; and Professional, Scientific and Technical Services
|Real Estate and Rental and Leasing Services||0.399%||0.399%||0.420%||0.420%|
- Registration Fee reduction (approximately 50%) depending on the business' Business Activities
- Registration Fee increase of $230 or $245 depending on the business' Business Activities
- Registration Fee increase of $435 or $460 depending on the business' Business Activities
Need Further Assistance?
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