Business Taxes for Landlords

1. Overview

Landlord Business Tax Information

2.  

3. Who needs a Business License?

  • Anyone operating or doing business in the City of Oakland is required to file and pay an annual business tax.
  • Anyone renting property (residential, commercial and industrial) in the City of Oakland is required to file and pay an annual business tax.
  • Renting property: All property owners in Oakland who wish to rent out their property must file and obtain a business tax certificate. The tax you will pay is based on your annual gross rental income. If the property is residential or mixed use, you must also complete the New Rent Adjustment Program Fee Application (RAP). If the property is 100% commercial/industrial, it is not necessary to complete this (RAP) application.
  • Renting a room: All persons who rent or sublet rooms must obtain a business tax certificate.

4. What you need to know before you apply:

If you do business or own any kind of rental property (residential, commercial and industrial) in the City of Oakland, you will need to file and pay an annual business tax.

If you are renting out residential property you will need to register with the City's Rent Adjustment Program. Once you're registered with the RAP, you will also need to pay a rent adjustment fee of $101 per rental unit.

5. Application Process:

Business Tax Application Process Flow

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Apply for a New Business Tax Certificate online or at the Business Tax Office.

A non-refundable business registration fee plus special fees (SB1186 State Disability Access and Education Fund and Recordation and Technology), are due within 30 days of the business or rental start date.

In addition, a pre-payment of taxes on estimated first year calendar gross receipts, from start date to December 31, is due. The estimated tax pre-payment will be trued up/down on next year’s renewal, creating an amount owed or credit on the account.

For late registrations, 31 – 60 days late add 10%, 61 days late and over add additional 25% (10% + 25% = 35%). Additionally, simple interest at 1% per calendar month is added on registration fee, tax and penalty.

Renewals are due March 1st each year. 

The seven-story Hanover apartment building with Target on the ground floor.

The City accepts payment by cash, check, cashier's check, money order, Mastercard, Visa, Discover Card or an ATM/Debit Card. If an e-mail address is provided, the Business Tax Certificate will be sent in 2-3 business days, otherwise the certificate will be mailed in 7-10 business days after the fee has been paid.

Business tax accounts are not transferrable. If you are a new owner, do not use the old owner’s business tax account. The old owner should close their business tax account and the new owner should apply for a new business tax account.

 

Business Tax Application Process Flow

6. Renewal

Business taxes must be paid annually, on or before March 1st of each year. It is your responsibility to renew your certificate on time and/or to notify the Business Tax Office

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