SF Tax Brackets: State, Federal, Payroll, and Gross Receipts

San Francisco tax brackets stack in layers: federal income tax from 10% to 37%, California state income tax from 1% to 13.3%, and a set of city-level business, property, and transfer taxes that operate on their own tiered schedules. San Francisco itself imposes no personal income tax, so a resident’s paycheck runs through the federal and state systems, while businesses and property owners deal with the city’s brackets directly. The rates below are for the 2026 tax year unless noted otherwise.

California State Income Tax Brackets

Personal income tax for San Francisco residents runs through California’s graduated system under Revenue and Taxation Code Section 17041. The state uses nine base brackets from 1% to 12.3%, plus a Mental Health Services Act surcharge of 1% on taxable income above $1 million that creates an effective tenth tier at 13.3%.¹

For 2026, married couples filing jointly face this schedule:

1% up to $21,198
2% from $21,199 to $50,222
4% from $50,223 to $78,768
6% from $78,769 to $109,276
8% from $109,277 to $137,818
9.3% from $137,819 to $707,674
10.3% from $707,675 to $849,210
11.3% from $849,211 to $1,000,000
12.3% from $1,000,001 to $1,354,550
13.3% over $1,354,550

Single filers hit each threshold at roughly half those numbers, crossing into the 9.3% bracket around $68,909 and reaching the top 13.3% rate around $677,275. These are marginal rates. Only the dollars falling inside each band get taxed at that band’s rate.

Filing late triggers a 5% penalty on unpaid tax for each month the return is overdue, capped at 25%.² Paying late is separate: 5% up front, plus 0.5% per additional month for up to 40 months.³ Both can apply at once.

Federal Income Tax Brackets

Federal tax sits on top of the state calculation. The IRS uses seven brackets for 2026:⁴

10% up to $12,400 single / $24,800 joint
12% from $12,401 to $50,400 / $24,801 to $100,800
22% from $50,401 to $105,700 / $100,801 to $211,400
24% from $105,701 to $201,775 / $211,401 to $403,550
32% from $201,776 to $256,225 / $403,551 to $512,450
35% from $256,226 to $640,600 / $512,451 to $768,700
37% over $640,600 / over $768,700

The 2026 standard deduction is $16,100 single and $32,200 joint, which reduces taxable income before the brackets apply. A San Francisco resident sitting at the top of both federal and state schedules faces a combined marginal rate above 50%.

Payroll Taxes on Wages

Withholdings come out before income tax. Social Security is 6.2% on wages up to $184,500 in 2026, doubled to 12.4% for the self-employed.⁵ Medicare is 1.45% on all wages with no cap, plus an additional 0.9% on wages above $200,000.⁶

California withholds State Disability Insurance at 1.3% on all wages. The SDI wage ceiling was eliminated in 2024, so the rate applies to every dollar. Between federal payroll taxes, SDI, and income tax withholding, a San Francisco employee earning $250,000 will see roughly 40% of each additional dollar go to taxes.

San Francisco Gross Receipts Tax

The city’s main business tax runs on revenue rather than profit. Rates vary by business category and by revenue tier, forming a grid rather than a single ladder.⁷ Seven categories cover activities like retail, financial services, construction, and professional services.

For 2025–2026, a retail business (Category 1) under $1 million in San Francisco gross receipts pays 0.100%. A financial services firm (Category 6) at the same revenue level pays 1.500%, and Category 6 businesses above $1 billion in receipts pay 3.360%.⁸ Construction firms (Category 7) start at 0.500% and climb to 1.680% above $1 billion.⁹

Voters approved Proposition M in November 2024, raising the small business exemption from $2.25 million to $5 million in San Francisco gross receipts.⁸ Starting with the 2025 tax year, businesses at or below $5 million don’t need to file a Gross Receipts Tax return at all.

Homelessness and Overpaid Executive Surcharges

Two additional brackets stack on top of the base Gross Receipts Tax for larger businesses.

Homelessness Gross Receipts Tax

This surcharge applies to businesses above $25 million in San Francisco gross receipts. Rates run from 0.175% for retail and wholesale up to 0.690% for private education, health services, and administrative support.¹⁰ The rate is set by activity, not revenue tier. Nonprofits, banks, and insurance companies are generally exempt.

Overpaid Executive Tax

Companies whose highest-paid executive earns more than 100 times median employee pay owe a surcharge on gross receipts. It starts at 0.1% and steps up to 0.6% for ratios above 600-to-1.¹¹ Companies subject to the Administrative Office Tax face 0.4% to 2.4% on payroll expense at the same ratio tiers. Proposition M added a $5 million small business exemption to this tax.⁸

Business Registration Fee Tiers

Every business operating in San Francisco needs a registration certificate and pays an annual fee separate from the Gross Receipts Tax. Starting April 1, 2026, the fee is based on the prior year’s San Francisco gross receipts:¹²

$0–$100,000 in receipts: $55
$100,001–$250,000: $95
$250,001–$500,000: $160
$500,001–$1,000,000: $440
$1,000,001–$2,500,000: $1,130
$2,500,001–$5,000,000: $1,885
$5,000,001–$25,000,000: $800–$6,500
$25,000,001–$100,000,000: $20,000–$40,000
Over $100,000,000: $50,000–$60,000

The dip at the $5–$7.5 million tier is intentional under Proposition M, which shifted more of the burden onto the largest businesses. A $4 state fee is added to every tier.⁸ The combined annual business tax filing and registration renewal is due March 2, 2026 for the current cycle.¹³ An extended filing deadline takes effect in November 2026 to align more closely with California’s state schedule.

Property Tax

San Francisco property tax runs under Proposition 13, which caps the base rate at 1% of assessed value and limits annual assessment increases to 2% unless the property changes hands or undergoes new construction. When ownership transfers, the property is reassessed at current market value.

The total effective rate for fiscal year 2025–26 is roughly 1.183%, combining the 1% base with voter-approved additions for schools, transit, and city bonds.¹⁴ On a home assessed at $1.2 million, that comes to about $14,196 per year.

Bills arrive in two installments. The first is due November 1 and becomes delinquent December 10. The second is due February 1 and becomes delinquent April 10. Missing either date brings a 10% penalty on the unpaid amount.¹⁵ New buyers should also expect a supplemental bill covering the difference between the previous owner’s assessed value and the new market value, prorated for the remaining months in the fiscal year.

Real Estate Transfer Tax Brackets

When property changes hands, San Francisco charges a documentary transfer tax on a tiered schedule:

$100–$250,000: 0.50%
$250,001–$999,999: 0.68%
$1,000,000–$4,999,999: 0.75%
$5,000,000–$9,999,999: 2.25%
$10,000,000–$24,999,999: 5.50%
$25,000,000 and above: 6.00%

The rate applies to the full sale price, not just the portion in each tier. A $6 million sale owes 2.25% on the whole amount, or $135,000. The jumps at $5 million and $10 million create sharp thresholds that shape deal timing and structure. Sales to the city or to qualifying affordable housing nonprofits are taxed at no more than 0.75% regardless of price.

Sales Tax

The combined state and local sales tax rate in San Francisco is 8.625% for 2026. That’s the 6% statewide base plus county and district additions totaling 2.625%. Sales tax isn’t bracketed, but it applies uniformly to prepared food, clothing, electronics, and other tangible goods. Groceries, prescription medications, and most services are exempt.

1
California Legislative Information. Revenue and Taxation Code 17041 – Imposition of Tax
2
California Legislative Information. California Code RTC 19131 – Penalties and Additions to Tax
3
Franchise Tax Board. Common Penalties and Fees
4
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
5
Social Security Administration. Contribution and Benefit Base
6
Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
7
Treasurer & Tax Collector. Gross Receipts Tax (GR)
8
Treasurer & Tax Collector. Proposition M (2024) – Business Tax Reform
9
San Francisco Code Library. SEC 953.26 Gross Receipts Tax Applicable to Category 7 Business Activities
10
Treasurer & Tax Collector. Homelessness Gross Receipts Tax (HGR)
11
Treasurer & Tax Collector. Overpaid Executive Tax (OE) – 2024 and Prior Years
12
San Francisco Code Library. SEC 855 Registration Certificate – Fee
13
Treasurer & Tax Collector. Annual Business Registration and Tax Form
14
Treasurer & Tax Collector. Secured Property Taxes
15
Treasurer & Tax Collector. Delinquent Property Taxes