San Francisco’s complex tax filings due February 28, 2025

In brief

What happened?

Companies engaging in business in San Francisco (the city) must register in the city and pay a license fee. The deadline for paying license fees for the 2025-2026 period is March 31, 2025. Additionally, businesses may be subject to up to four main city taxes: the San Francisco Gross Receipts, Homelessness Gross Receipts, Commercial Rents, and Overpaid Executive taxes. The 2024 filing and final payment deadline for these taxes is February 28, 2025 (extension to file but not pay is available until April 29, 2025).   

For a discussion of the Los Angeles City Business Tax, due on February 28, 2025, access PwC’s Insight, available here.  

Why is it relevant?  

San Francisco’s doing business (nexus) standards include maintaining a fixed place of business within the city, performing any work (including remote work and solicitation) within the city for all or part of any seven days during the calendar year, or generating more than $500,000 in San Francisco-sourced gross receipts during the calendar year. Except in certain limited circumstances, tax filings must be made online, through the city’s website. Penalties and interest will accrue for missed year-end payments and for late filings, and taxpayers should be aware of the potential for a higher bill if a missed or late filing occurs.  

Actions to consider  

The rules surrounding San Francisco taxes, as well as the city’s economic nexus standard, are unique and complex. Consideration should be given as to whether a filing obligation exists and how gross receipts should be apportioned to the city.