San Francisco Local Tax Guide (2026)
SF residents pay only California state income tax plus federal tax. The city’s local revenue tools are business-side: the Gross Receipts Tax (since tax year 2014, Prop E), a Homelessness Gross Receipts Tax surcharge for large businesses (Prop C), and business registration fees.
Verified 2026-08-21 against official city / state sources. Where a 2026 rate could not be individually re-verified, the verified year and source are stated instead of a guess.
Quick answer (San Francisco, 2026)
No — San Francisco does not levy a personal income tax on residents or on wages earned in the city. California law bars cities from income taxes on individuals. Instead, SF taxes businesses: a Gross Receipts Tax replaced the old Payroll Expense Tax (fully repealed by Prop F, effective 2021). Source: SF Office of the Controller — Gross Receipts Tax / Payroll Expense Tax history (Prop E, F, M) (retrieved 2026-08-21).
What you actually pay
San Francisco has no personal income tax: wages earned in SF are taxed only by California (1%–13.3%) and the IRS.
The Payroll Expense Tax, historically SF’s main business levy, was fully repealed by Proposition F effective 2021 and replaced by higher Gross Receipts Tax rates.
The Gross Receipts Tax applies to businesses by industry and revenue tier. Proposition M (Nov 2024) restructured it for tax years starting January 1, 2025, including a sales/payroll-based apportionment.
A separate Homelessness Gross Receipts Tax surcharge (Prop C) applies to businesses with worldwide gross receipts over $50 million.
Employees who work in San Francisco see no city income-tax line on their pay stub. The only income taxes withheld are federal and California state.
California law bars cities and counties from levying personal income taxes, so no California city — San Francisco, Los Angeles, San Diego — taxes individual wages or income. Local revenue comes from property, sales, business, and utility taxes instead.
California state income tax plus local property tax are state and local taxes for federal purposes, subject to the 2026 SALT cap. Because California has no city income tax, there is no separate city SALT component to add.
For businesses, San Francisco registration and the Gross Receipts Tax are administered by the Office of the Treasurer & Tax Collector; the Homelessness surcharge applies only to the very largest firms.
Because San Francisco has no personal income tax, a worker choosing between a role in the city and a role elsewhere in California compares only California state tax and cost of living — the city itself does not change the income-tax rate.
San Francisco voters have repeatedly reshaped business taxation through propositions (E, F, and C among them), but those measures always fall on employers and businesses. None created a personal income tax, which state law would forbid.
This guide summarizes structural facts for planning. It is not a substitute for the official California tax code or a licensed preparer.
Frequently asked questions
Related state guide
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Tax outcomes depend on your full facts, filing history, and jurisdiction-specific rules that change yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Sources & methodology
- SF Office of the Controller — Gross Receipts Tax / Payroll Expense Tax history (Prop E, F, M) — City and County of San Francisco Office of the Controller