Los Angeles Business Tax Estimator
Estimates based on the City of Los Angeles Office of Finance Business Tax Rate Table (2018 to present, revised August 2025). The tax is charged per $1,000 of gross receipts at rates from $1.01 to $4.25 depending on your business category. Businesses with $100,000 or less in worldwide gross receipts owe $0 if they register and file their renewal on time.
Estimates use the Office of Finance Business Tax Rate Table 2018 to present (revised August 2025). The small-business exemption covers worldwide gross receipts of $100,000 or less with a timely filed renewal. The city publishes no fee for the Business Tax Registration Certificate itself. We are not a government agency and are not liable for differences between these estimates and your final city tax bill. Fee schedules current as of September 2026.
Business Taxes in Los Angeles: The Honest 2026 Guide
Los Angeles does not charge a flat business license fee. Instead, the city taxes your gross receipts at a rate that depends on what kind of business you are, from $1.01 to $4.25 per $1,000 of receipts. The good news comes first: if your worldwide gross receipts are $100,000 or less and you file your renewal on time, you owe $0. You still have to register and file, but the tax itself is zero.
What Los Angeles actually charges businesses
| Business category | Rate per $1,000 of gross receipts | Examples |
|---|---|---|
| Wholesale, child care, multimedia | $1.01 | Wholesale sales, child care providers, telephone companies |
| Retail and hospitality | $1.27 | Retail sales, hotels, office and commercial rental, laundry and cleaners |
| Storage, vending, rentals | $2.55 | Storage and freight, vending machines, personal property rental |
| Brokers and telemarketing | $3.15 | Commission merchants and brokers, telemarketing agencies |
| Miscellaneous services | $3.56 | Advertising and PR agencies, travel agencies, temp agencies |
| Professions and occupations | $4.25 | Lawyers, consultants, app service providers |
| Contractors (special schedule) | $153 flat to $60,000, then $1.01 per $1,000 | Building, highway, and road contractors |
The Business Tax Registration Certificate (BTRC), which every business operating in the city must obtain, carries no published fee in the city's official materials. What you pay is the tax above, or $0 with the exemption.
What that looks like in real numbers
- Boutique doing $80,000 a year, filed on time: $0. The small-business exemption zeroes the tax.
- Retail store doing $250,000 a year: 250 units at $1.27 = $317.50 a year.
- Consulting firm doing $1.5 million a year: 1,500 units at $4.25 = $6,375 a year.
- Contractor doing $100,000 a year: $153 + 40 units at $1.01 = $193.40 a year.
The exemption has fine print
The $100,000 covers worldwide gross receipts, taxable and nontaxable, inside and outside the city, not just what you earned in Los Angeles. And it only works if your renewal is filed on time; file late and you owe tax on everything. Renewals are due around the end of February each year. The exemption has been in place since 2006.
The repeal that did not happen
A business-backed initiative to repeal the gross receipts tax had qualified for the November 2026 ballot, but it was withdrawn in May 2026 as part of a compromise with the City Council over hotel and airport wage rules. It is not on the ballot, and the tax continues unchanged. Rates have not changed since January 1, 2018.
Two more things worth knowing
- New businesses owe tax from year one: the old first-year exemption was repealed in 2018.
- Creative artists in entertainment get a separate exemption: $0 tax on creative-activity receipts up to $300,000.
- Landlords: owners of 3 or fewer residential units are not liable; 4 or more units require registration at the $1.27 rate.
Where to register and file
- Office of Finance, business taxes: finance.lacity.gov
- Business Tax Rate Table 2018 to present (PDF): official rate table
- Tax Information Booklet: finance.lacity.gov
Frequently asked questions
How much is a business license in Los Angeles?
There is no flat license fee. You register for a Business Tax Registration Certificate (no published fee) and pay the gross receipts tax for your category, or $0 if you qualify for the small-business exemption.
Do I owe anything if my business makes under $100,000?
Very likely $0 in tax, as long as that $100,000 is your worldwide total and you file your renewal on time. You still must register and file.
Was the business tax repealed?
No. A repeal initiative qualified for the November 2026 ballot but was withdrawn in May 2026. The tax remains in force with rates unchanged since 2018.
How is the tax calculated?
Your gross receipts are rounded up to the next $1,000, divided into $1,000 units, and multiplied by your category's rate. A $250,000 retail business pays 250 x $1.27 = $317.50.
When is the renewal due?
Around the end of February each year (March 2 for the 2026 period). File late and you lose the small-business exemption.
Sources
Every figure on this page comes from an official city source, verified September 2026:
- Business Tax Rate Table 2018 to present, revised August 2025 (PDF) - finance.lacity.gov
- Know Your Rates, Office of Finance - finance.lacity.gov
- Tax Information Booklet, Office of Finance - finance.lacity.gov
- 2026 Business Tax Renewal Form (Form 1000A) - finance.lacity.gov
Rates shown are the Office of Finance Business Tax Rate Table 2018 to present (revised August 2025). The city has not changed rates since January 1, 2018. Confirm your category and current rates with the Office of Finance before finalizing your business budget. Last updated September 2026.