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The City of Newport Beach (City) Municipal Code provides that every business operating in the City is required to file a Business License Tax application prior to the start of business and pay the annual tax each year thereafter. This ordinance applies to businesses operating at a commercial or residential location within the City, or any business using an address in Newport Beach or a Post Office box for receiving mail. Businesses based outside of Newport Beach who are conducting activity in the City (for example, contractors, consultants, and landscape maintenance companies) must also file an application. Exemptions may apply to charitable and non-profit organizations and to disabled veterans.
Business License Tax Rates
The City Business License Tax is an annual tax, based on a fiscal year. It is renewable every 12 months. The business license tax is based on the location of where your business operates in the City. Every year in July, the business tax is adjusted to reflect inflation, as measured by the Consumer Price Index (CPI).
The 2024-2025 tax year (effective 07/01/2024) rates are shown below.
Location Type | Base Tax (Applies to All) | STATE FEE † | Amount per W2 employee | Max Tax |
---|---|---|---|---|
In-Town Commercial * | ||||
Collects Sales Tax | $222 | $4 | $11 | $1,109 |
No Sales Tax Collected | $222 | $4 | $22 | $2,218 |
Residential | $211 | $4 | N/A | N/A |
Out of Town Based | $333 | $4 | N/A | N/A |
Post Office Box / CMRA** | $222 | $4 | N/A | N/A |
State Contractors (CSLB) with seller's permit |
$211 | $4 | $11 | $328 |
State Contractors (CSLB) without seller's permit |
$211 | $4 | $22 | $324 |
Note: These rates are valid through June 30, 2025. |
* Includes executive suites/virtual offices
**Commercial mail receiving agency (The UPS Store, Mailboxes Etc., FedEx Office, etc.)
† AB 1379 adds a mandated state fee of $4 on any applicant for a business license or renewal to comply with federal and state disability laws. Under federal and state law, compliance with disability access laws is a serious and significant responsibility that applies to all California building owners and tenants with buildings open to the public. You may obtain information about your legal obligations and how to comply with disability access laws at the following agencies:
- The Division of the State Architect at www.dgs.ca.gov/dsa
- The Department of Rehabilitation at www.dor.ca.gov/
- The California Commission on Disability Access at www.dgs.ca.gov/ccda
- Disability Access Requirements and Resources Notice
- AB 3002 Business License, Building Permit Model Notice webpage
- California Civil Code §51.6 prohibits businesses from engaging in gender-based discrimination. A full notice of the business’s legal obligations is available in English and other languages at https://www.dca.ca.gov/publications/ or by request from our office.
Certain types of businesses, in addition to the filing of and payment for the annual business license tax, must also be licensed or permitted by the city.
- Other City Licenses and Permits
- Business License Paper Application (additional processing fee applies)