Daly City business taxes come in a few distinct pieces: an annual business license tax administered by the city’s Finance Department, a 5% utility users tax collected through your service providers, sales and use tax collected for the state, a 13% transient occupancy tax on short-term lodging, and property taxes billed by San Mateo County. Each has its own deadline and its own penalty for missing it.
Business License Tax
Anyone conducting business inside Daly City limits needs a Business License Tax Certificate. The Finance Department runs the program under Chapter 5.04 of the Municipal Code, and the license year runs October 1 through September 30.1Daly City, CA. Business License Requirements and Application
The minimum tax for a new applicant is $114: $110 in base tax plus a $4 state mandate fee. That figure can go up based on your location, gross receipts, employee count, or square footage. Food trucks pay a flat $125 plus the $4 fee. Businesses with no revenue that operate only as office space pay the minimum calculated on employees or square footage, whichever is higher.2Daly City, CA. Frequently Asked Questions – General New Applicant
When you apply, have your Federal Employer Identification Number or Social Security Number ready, along with your business start date and an estimate of gross receipts. That receipts figure sets your tax bracket, so get it right. You’ll also pick a business category, and different categories carry different fee schedules. Application forms live on the Finance Department’s website.3Daly City, CA. Forms – Business License Forms
Filing, Paying, and Renewing
You can apply and pay through the city’s online portal at dalycity.hdlgov.com or mail paper forms to the Finance Department at City Hall. Payment options include checks made out to “City of Daly City” and Visa or MasterCard. The application and the full fee must arrive together for processing to start.1Daly City, CA. Business License Requirements and Application
Because the license year ends September 30, renewals fall due each fall. The city does not publish a set percentage-based late fee. Operating a business or rental property without a current license instead exposes you to penalties and fines administered through HdL, the city’s contracted compliance vendor, and third-party collections tend to run higher than the on-time renewal would have.1Daly City, CA. Business License Requirements and Application
A Separate State Seller’s Permit
If you sell or lease physical goods that would be subject to sales tax, California requires a seller’s permit from the California Department of Tax and Fee Administration before you open. Retailers, wholesalers, manufacturers, and temporary sellers all fall under this.4CA.gov. Apply for a Sellers Permit The seller’s permit does not replace your Daly City business license. You need both.
Sales and Use Tax
Businesses selling taxable goods or services in Daly City collect a combined sales tax rate of 9.875% as of April 2026.5California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates That total blends the state rate, county rate, a 0.5% Daly City share, and other district taxes. Sales tax collected at the register goes to the CDTFA, not to the city’s Finance Department, and registration for sales tax is a separate process from the business license.
Utility Users Tax
Daly City charges a 5% utility users tax on electricity, natural gas, telecommunications, and video services used within city limits.6Daly City, CA. Utility Users Tax Remittance Form Providers collect it automatically as a line item on your monthly bill and remit to the city on a set schedule. Late remittances carry a 15% penalty. If a provider fails to collect, the city can pursue the customer directly for the unpaid amount. Check that your service address is coded to Daly City rather than a neighboring jurisdiction, because a misrouted account sends your tax to the wrong city.
Exemption for Seniors and Disabled Residents
A utility users tax exemption is available if you live in the home and meet one of these criteria:
- Age 62 or older as of December 31 of the previous year
- Blind or disabled
- Total household income for the previous year at or below $42,300, counting wages, Social Security, pensions, interest, dividends, and rental income
The exemption covers phone, electric, and cable bills only. Water and garbage are not included. It expires every May 31, so you have to reapply each year to keep it.7Daly City, CA. Utility Users Tax Exemption
Transient Occupancy Tax
Daly City levies a 13% transient occupancy tax on hotel and short-term lodging stays of 30 days or less. Guests pay it, but lodging operators collect and remit it. If you run a hotel, motel, or short-term rental in the city, this is a separate reporting obligation from your business license.
Property Tax Through San Mateo County
Property owners in Daly City send their property tax payments to the San Mateo County Tax Collector, not to the city. Mailing a check to the wrong office is a common way to blow a deadline.
Secured property taxes come in two installments. The first is due November 1 and becomes delinquent after December 10.8California Legislative Information. California Code Revenue and Taxation Code 26059California Legislative Information. California Revenue and Taxation Code 2617 The second is due February 1 and becomes delinquent after April 10.10California Legislative Information. California Code Revenue and Taxation Code 2618 When a deadline lands on a weekend or holiday, the delinquency date shifts to the next business day.
Miss December 10 and a 10% penalty attaches the next day. Miss April 10 and you owe 10% plus a $40 administrative cost.11San Mateo County. Tax Collector Those penalties are automatic. No grace period.
Supplemental Bills After a Purchase or New Construction
Buying property in Daly City or finishing new construction triggers a supplemental assessment. The County Assessor recalculates value at the current market price, and the supplemental bill covers the difference between the old assessed value and the new one, prorated for the months left in the fiscal year and multiplied by the tax rate.12San Mateo County. Supplemental Tax Most supplemental bills arrive within nine months of the triggering event, on top of the regular secured tax bills. New buyers should budget for it.
Minimum Wage Is Not a Tax, But It Is an Obligation
The Daly City minimum wage sits alongside these tax rules as a compliance item worth flagging. As of January 1, 2026, the rate is $17.50 per hour and applies to adult and minor employees who work two or more hours per week inside the city.13Daly City, CA. Minimum Wage Tips, health insurance, vacation, and other benefits cannot be used to offset it. The city can investigate violations, order back wages, require reinstatement, and impose penalties, and retaliation against workers who raise a claim is separately prohibited.