Know Your Rates

Every person who engages in business within the City of Los Angeles is required to obtain the necessary TRC(s) and pay the business tax or obtain an exemption If your business is located within an unincorporated area within the County of Los Angeles.

Tax Rate Tables


Please click on the following link to discover the applicable tax rate for your business type.  

2018 Tax Rate Tables (Current)

2018 Non-Gross Tax Rate Tables (Current)

PDF icon2018 Tax Rate Table

**Cannabis Businesses:  Please note that if you operate a cannabis business, Classification L050 expired on 12/31/17.  For the updated Cannabis Tax Rate Table, please click here.

PDF iconNon-Gross Receipts Business Tax Rate Table

Archived Tax Rated Tables  

PDF icon2009-2017 Tax Rates

PDF icon2008 Tax Rates Table [PDF 1 pages, 32 KB]

PDF icon2007 Tax Rates [PDF 1 pages, 59 KB]

PDF icon2006 Tax Rates [PDF, 2 pages, 495 KB]

Interest Rate Tables


Please click on the following link to discover the applicable tax rate for your business type.

Interest Rates  

Penalty Rate Tables


Please click on the following link to discover the applicable tax rate for your business type.

Penalty Rates  

Most Common Business Types and Tax Rates


While there are many different business activities taxed at varying rates, the following represent the most common business types.

Business Type

Tax Rate

Important Notes

Auto Parks $4.25 per $1,000 or fractional part thereof of gross receipts. For persons engaged in the business of conducting any automobile parking place, storage lot or storage place where motor vehicles are parked or stored, and a charge made directly or indirectly for such parking or storage.
Child Care Providers $1.01 per $1,000 or fractional part thereof of gross receipts. For providing non-medical care for children under 18 years of age in need of personal services, supervision or assistance essential for sustaining the activities of daily living or for the protection of the individual on less than a 24-hour basis.
Commission Merchant or Broker $3.15 per $1,000 or fractional part thereof of gross receipts. For persons who bring buyers and sellers of goods, wares or merchandise together, while serving in the capacity of an independent contractor and not as an employee of another.
Contractor $153.00 for the first $60,000 or less of gross receipts plus $1.01 per $1,000 or fractional part thereof in excess of $60,000. 

For businesses constructing, altering, repairing, or demolishing any building, highway, road or other structure.

Please Note:

  • In-City Contractor pays an additional $2.55 per $1,000 or fraction of all salaries and fees paid for services rendered in the City in connection with out-of-city projects.
  • When there are no projects outside the City, only gross receipts from projects in the city are reported.
Independent Telemarketing Agency $3.15 per $1,000 or fractional part thereof of gross receipts. For persons engaged in the business of marketing services or goods, wares or merchandise on behalf of three (3) or more clients continuously, none of which has any ownership interest in said person, by use of a telecommunications device at a call center
Internet-based Businesses $1.01 per $1,000 or fractional part thereof of gross receipts. For businesses using the Internet as the primary means of providing services.
Laundry, Cleaning and Dyeing Agent, Collector, Linen Supply and Shoe Repair $1.27 per $1,000 or fractional part thereof of gross receipts. For persons engaged in the business of washing, drying, cleaning, dyeing or pressing any clothing, or similar article of personal property, whether accomplished by hand, machine or any coin-operated machine operated by such person, his employee or any customer, or furnishing or letting the use of any towels, linens, aprons, bedding, napkins, table covers, or any other article of personal property of a similar nature, or collecting or delivering any such article as an agency or otherwise, for a fee or charge or repairing or rebuilding shoes.
Miscellaneous Services $3.56 per $1,000 or fractional part thereof of gross receipts. For persons engaged in the business of: advertising agency, aircraft support contractor, apparel subcontractor, bookbinder, check cashing service, drapery subcontractor, heat treater, mailing service, metal plater, music teacher, public relations agency, refuse contractor, shoe shining stand or parlor operator, silk screen apparel subcontractor, temporary help agency, ticket sellers, travel agency, typesetter or wire terminator.
Multimedia Businesses $1.01 per $1,000 or fractional part thereof of gross receipts.

For businesses that:

  • Produce films, disks, tapes, software or other recording devices, whether visual or audio, through the integration of two or more media, which media include, without limitation, computer generated graphics and video, film, slides, video tapes, audio tapes and photographs
  • Provide computer programming services on a contract or fee basis for services that include computer software design and analysis, modification of custom software, digital imaging and other related programming services
  • Develop online and Internet services, including the design of WEB sites, for clients.
Personal Property Rental $2.55 per $1,000 or fractional part thereof of gross receipts. For persons engaged in the business of leasing or renting any tangible personal property, and not specifically taxed by other provisions of this article. It is not required to include the gross receipts for the leasing or renting of tangible personal property when the entire use is made wholly outside the State of California.
Professions and Occupations Businesses $4.25 per $1,000 or fractional part thereof of gross receipts.
  • Persons engaged in more than one trade, calling, occupation, vocation, profession or other means of livelihood covered within this section shall consolidate all gross receipts and shall be issued one Tax Registration Certificate covering all such service activities
  • Persons who are in the business of providing services may be entitled to an apportionment of gross receipts derived from activities conducted both inside and outside the City of Los Angeles (City Clerk's Ruling No. 15).
Rental of Commercial Property $1.27 per $1,000 or fractional part thereof of gross receipts. For persons engaged in the business of renting or letting a building to tenants for purposes other than dwelling. This tax does not apply to persons who operate storage warehouses or indoor auto parking
Rental of Dwelling Units $1.27 per $1,000 or fractional part thereof of gross receipts. For persons who are engaged in the business of conducting or operating a hotel, rooming house, apartment house, or other dwelling units.

Retail Sales

$1.27 per 1,000 or fractional part thereof of gross receipts.

Retail sales are the selling of any goods, wares or merchandise for any purpose other than resale. Common examples would be grocery stores, drug stores, hardware stores, clothing stores, restaurants, etc.

Wholesale Sales $1.01 per 1,000 or fractional part thereof of gross receipts.

Sellers who are engaged in both retail sales and wholesale sales are subject to both types of taxes. In these instances, it will be necessary to segregate the sales and pay a business tax for each classification.

Receipts, which may be excluded from Retail and Wholesale Business Taxes, are the following:

  • Out-of-State sales, which are shipped by the seller directly to the purchaser to points outside the State of California.
  • State or local sales and use taxes.
  • Returned merchandise where cash or credit is allowed.
  • Cash discounts allowed or taken