San Diego Rental Unit Business Tax: Who Pays and How Much

Reviewed by Brendan McKee, Managing Broker, DRE #01882732, on October 21, 2026.

If you rent out residential property in the City of San Diego, you owe the City's Rental Unit Business Tax each year. For a single-family home or condo the posted charge is a $50 base fee plus $5 per unit, plus a $4.00 state disability-access fee, and the tax is generally due March 1. It is a City of San Diego tax only, separate from your county property tax bill, and it does not apply to rentals in Coronado, Chula Vista or other cities.

Key takeaways

• The tax is "imposed annually upon anyone who owns, operates, or manages the rental of any residential real estate," including property "advertised or held out for rent."
• As of October 2026, the posted schedule is $50 plus $5 per unit for 1 to 10 units, $57 plus $9 per unit for 11 to 100 units, and $150 plus $8 per unit for 101 or more, plus the $4.00 state fee.
• It is generally due March 1. If no bill arrives by February 1, contact the City Treasurer.
• Late payment costs the greater of $25 or 10% of the tax, plus 1% a month, and the City bills back up to three years, with a late fee for each year.
• Exemptions, such as an owner-occupied home, must be claimed on the City's form with documentation. Short-term rental hosts must pay even when renting part of their own home.

Who has to pay

The City Treasurer's page says the tax "is imposed annually upon anyone who owns, operates, or manages the rental of any residential real estate." That covers single-family homes, condos, apartments and mobile homes, and it covers a property that is "advertised or held out for rent" even before a tenant moves in. If you are new to renting out a home, put this on your first-year list; see becoming an accidental landlord in San Diego.

The tax applies only to property inside the City of San Diego. Other cities set their own business tax and licensing rules, so an owner in Chula Vista, La Mesa or National City should check that city's rules. Coronado owners can start with the Coronado Rental Guide.

It is also separate from the county property tax. The San Diego County Assessor notes that "The City of San Diego is a separate entity that automatically issues the Rental Unit Business Tax bills." Renting a home affects your property tax in other ways, such as losing the homeowners' exemption; see California property tax on rental homes.

How much it costs in 2026

The City Treasurer posts this schedule. The page shows no fiscal year or effective date, so treat it as the current schedule as of October 2026 and confirm it on the fee page (opens in a new tab) before you budget.

The state fee. A $4.00 disability-access fee is added. AB 1379 raised it to $4 from January 1, 2018, and AB 2164 repealed a scheduled drop back to $1, so the City says "the $4.00 fee remains in effect indefinitely."

Examples from the posted schedule

1. Single-family home: $50 base + $5 for one unit = $55, plus the $4.00 state fee.
2. Fourplex on one parcel: $50 base + 4 x $5 = $70, plus the state fee.
3. 12-unit building: $57 base + 12 x $9 = $165, plus the state fee.

These are arithmetic from the published schedule, not a bill. Your bill from the Treasurer is the final word.

ADUs. The Treasurer's pages and exemption form do not say whether an ADU or JADU counts as a separate unit. The per-unit structure suggests it might, but this is not confirmed, so ask the Treasurer at rtax@sandiego.gov before you assume either way. For other rules on renting an ADU, see renting out an ADU in San Diego.

When it is due and what happens if you pay late

"The due date for the tax is generally March 1st of each year." The City asks owners to contact the Treasurer if a bill has not arrived by February 1, at (619) 615-1545 or rtax@sandiego.gov. Payments can be made through the City's online payment page. The Treasurer pages reviewed in October 2026 show no online form for opening a new rental account, so phone or email is the documented route to register.

Late payment adds up:

• Penalty: "the greater of $25.00 or 10% of the total tax due."
• Monthly charge: from one calendar month after the due date, an added 1% per month or part of a month.
• Back-billing: "The Office of the City Treasurer bills retroactively for up to three (3) years, with a late fee applicable to each year."

For a single-family home, the $25 minimum penalty is close to half the tax itself, and it can apply to each year the City back-bills. If you have been renting without an account, contacting the Treasurer sooner limits how much builds up. The general rules are on the City's rental tax information page (opens in a new tab).

Exemptions and how to claim them

The City's exemption form (RTAX-07/2023) lists these categories. Each requires documentation and a signature, and "Exemption will be DENIED if requested documentation and signature are not provided."

• Owner-occupied primary residence. But "Property owners renting their residence or portion of as a short term rental are required to pay the tax."
• Vacation or second home not available for rent.
• Immediate family member paying less than the owner's costs.
• Family trust property occupied by the trustee or beneficiary.
• Section 8 (HUD) or low-income housing, with proof from the San Diego Housing Commission.
• Nonprofit, under construction, builder or developer, and certain corporate or LLC uses.

The Section 8 category on the form is a business tax exemption only. Voucher tenancies are still covered by the City's tenant protection ordinance, and source of income is a protected category under California law (Gov. Code § 12955(p)), so a voucher can never be a reason to turn down an applicant.

Short-term rentals and the business tax

Short-term rental hosts in the City need a STRO license and must also pay the Rental Unit Business Tax. The STRO ordinance requires hosts to provide proof of payment on request (SDMC § 510.0107(f)), and the owner-occupied exemption does not cover renting all or part of your home short term. See short-term rental licenses in San Diego.

Where it fits in your budget

The business tax is a small line next to insurance, property tax, maintenance and vacancy, but it is easy to miss in the first year because the bill comes from the City rather than the county. Add it to your list of fixed costs in what it costs to rent out a San Diego home, and keep the paid bill with your rental records. A professional San Diego property management setup should track it with the other annual deadlines.

This is general information, not legal or tax advice. Confirm the details for your situation with a California attorney or tax professional.

Frequently asked questions

Do I need to pay the San Diego Rental Unit Business Tax?

Yes, if you own, operate or manage the rental of residential property inside the City of San Diego, including a single-family home or condo, unless you qualify for and claim an exemption. Property advertised or held out for rent is covered too. Rentals in Coronado, Chula Vista and other cities fall under those cities' rules instead.

How much is the San Diego rental business tax for a single-family home?

On the City Treasurer's posted schedule as of October 2026, a single-family home or condo is a $50.00 base fee plus $5.00 for the unit, plus the $4.00 state disability-access fee. Larger buildings pay more per unit: $57 plus $9 per unit for 11 to 100 units, and $150 plus $8 per unit for 101 or more.

When is the San Diego Rental Unit Business Tax due?

Generally March 1 of each year. If you have not received a bill by February 1, contact the City Treasurer at (619) 615-1545 or rtax@sandiego.gov. A late payment costs the greater of $25 or 10% of the tax, plus 1% per month starting one calendar month after the due date.

Is there an exemption from the rental unit business tax for owner-occupied homes?

Yes. The City's exemption form includes an owner-occupied primary residence, but you must submit the form with documentation and a signature or the exemption is denied. The exemption does not apply if you rent your residence, or part of it, as a short-term rental; those owners must pay the tax.

What happens if I never registered my San Diego rental for the business tax?

The City Treasurer bills retroactively for up to three years, with a late fee for each year, plus an added 1% per month. Contact the Treasurer by phone or email to open an account, since no online registration form for new rental accounts was found on the City's pages as of October 2026.

Next step: add it to your first-year checklist

The business tax is one of several City and state items a new San Diego landlord has to set up. To see what your home could rent for once those costs are in the budget, request a free San Diego rental analysis. McKee Properties has managed San Diego rentals since 1982.