Cupertino tax rates break down into five main charges: a combined 9.75% sales and use tax, a property tax capped at 1% of assessed value under Proposition 13 plus voter-approved add-ons, an annual business license tax starting at $185, a utility user tax on gas, electric, and phone service, and a 12% transient occupancy tax on hotel stays. Some go to the city, some to Santa Clara County, and some to the state.
Sales and Use Tax
The combined sales and use tax rate in Cupertino is 9.75% as of April 1, 2026.1California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rates You pay this rate on most purchases of physical goods. The total is built from California’s statewide portion, a county allocation, and voter-approved district taxes funding transportation and other regional projects in Santa Clara County.
Retailers charge the combined rate at the register and remit it to the California Department of Tax and Fee Administration, which distributes each layer to the right government. One of those layers is a 1% local share that flows back to Cupertino as general-purpose revenue the city can spend on anything from road repairs to public safety.2California State Association of Counties. Sales and Use Tax Issue Brief
Property Tax
Article XIII A of the California Constitution caps the base property tax rate at 1% of a property’s assessed value.3Ballotpedia. Article XIII A, California Constitution Assessed value can rise by no more than 2% per year under normal circumstances. The Santa Clara County Assessor only resets a property’s value to full market price when it sells or undergoes new construction.4California Legislative Information. California Constitution Article XIII A
Your actual bill will almost always exceed the 1% base. Voter-approved bonds for schools, infrastructure, and special assessment districts add charges on top, and those extra levies vary by parcel location. Two neighbors a block apart can have noticeably different bills.
Supplemental Bills After You Buy
If you buy a home in Cupertino, expect a supplemental tax bill on top of the regular annual bill. When ownership changes, the Assessor recalculates the value to reflect the purchase price. The county then taxes you on the difference between the old assessed value and the new one, prorated for the months remaining in the fiscal year ending June 30. The 1% rate applies to that prorated difference. The supplemental arrives separately, sometimes months after closing, which catches many first-time buyers off guard.
Due Dates and Late Penalties
Annual property tax comes in two installments. The first is due November 1 and becomes delinquent after December 10. The second is due February 1 and becomes delinquent after April 10. If a deadline falls on a weekend or county holiday, it extends to the next business day.5County of Santa Clara Department of Tax and Collections. Obtain Secured Property Tax Information
Miss a deadline and the county adds a 10% penalty to the unpaid amount. The second installment carries an additional cost on top of the 10%. If both installments remain unpaid by June 30, the property goes into tax default, which triggers further penalties and can eventually lead to a tax sale. There is no grace period once the delinquent date passes.
Appealing Your Assessment
If you believe the Assessor overvalued your property, you can request a free informal review from the Assessor’s office first, or file a formal assessment appeal with the Santa Clara County Clerk of the Board. Effective June 1, 2026, the nonrefundable filing fee is $290 per parcel for residential, vacant land, and agricultural properties, and $675 per parcel for commercial, business, and multifamily properties with five or more units. The fee may be waived for applicants receiving public assistance.6County of Santa Clara Clerk of the Board. Appeal Your Property Taxes
Business License Tax
Every person or entity doing business within Cupertino needs a business license under Municipal Code Chapter 5.04, including home-based businesses, independent contractors working in the city, and hotels.7City of Cupertino. Business License
Base Fee and Square Footage
The annual base fee is $185, made up of a $181 flat license fee and a $4 state-mandated accessibility compliance surcharge (SB 1186). A small business earning between $1,000 and $5,000 in gross revenue per year can qualify for a reduced license fee of $94.49 by submitting an affidavit with the application.
If your business operates in a commercial zone, you also owe a square footage tax on top of the base fee, calculated on a tiered schedule:
- 0–5,000 sq. ft.: $0.0496 per square foot
- 5,001–25,000 sq. ft.: $0.0432 per square foot
- 25,001–75,000 sq. ft.: $0.0374 per square foot
- 75,001–100,000 sq. ft.: $0.0309 per square foot
- 100,001–150,000 sq. ft.: $0.0247 per square foot
- 150,001+ sq. ft.: $0.0062 per square foot
Late Penalties
Cupertino charges a 20% penalty for each calendar month the business license tax goes unpaid, up to 100% of the original amount per year. Interest also accrues at 1% per month on the unpaid balance, calculated separately from the penalties. Operating without a valid license is itself a code violation, and the city can take legal action regardless of whether you received a renewal reminder.
Where to Apply and Renew
As of September 2025, Cupertino’s business license services run through HdL, a third-party administrator. New applications and renewals go through the HdL portal at cupertino.hdlgov.com rather than directly through City Hall. HdL sends three automated email reminders and one mailed letter within 30 days of expiration, but these are courtesies, not legal requirements. You are responsible for renewing on time even if a reminder never reaches you.
Utility User Tax
Cupertino imposes a utility user tax on gas, electric, and telephone bills.8City of Cupertino. Senior Citizen Utility Tax Exemption Application The telecommunications portion is 2.4%. Cable television is not covered.
Senior citizens may apply for an exemption from the utility user tax on their gas, electric, and phone charges through the city’s exemption application. If you qualify, the exemption removes the tax from your covered utility bills. Contact the city’s finance department for eligibility details and the form.
Transient Occupancy Tax
Hotels, motels, and similar short-term lodging in Cupertino charge a 12% transient occupancy tax on the total rent paid by guests. Operators collect the tax and remit it to the city monthly through the HdL portal.9City of Cupertino (HdL). File and Pay Monthly TOT (Transient Occupancy Tax)
Who Collects What
Each tax has its own payment path, and mixing them up means your payment will not get credited properly.
Property tax goes to the Santa Clara County Department of Tax and Collections, not the City of Cupertino. The county accepts e-checks and credit or debit cards online. Card payments carry a convenience fee of 2.22% of the transaction amount, with a minimum charge of $1.49.10Department of Tax and Collections, County of Santa Clara. Make Payments Online
Business license and transient occupancy tax payments go through HdL at cupertino.hdlgov.com. You can also reach HdL at (408) 329-9654 or cupertino@hdlgov.com with questions about an account or payment. Sales tax is handled by the retailer at the register and remitted to the California Department of Tax and Fee Administration, so you have nothing to file as a consumer.