San Francisco Income Tax Calculator 2026
San Francisco does not have a traditional city income tax for W-2 employees, but it has payroll expense taxes and gross receipts taxes that affect freelancers and business owners. Use this calculator to estimate California state income tax for the 2026 filing season (tax year 2025).
Does San Francisco Have a Local Income Tax?
While San Francisco does not have a traditional "City Income Tax" for W-2 employees, it has a complex system of Payroll Expense Taxes and Gross Receipts Taxes that affect anyone earning money within city limits, especially freelancers and business owners.
Key SF Tax Differences in 2026:
- No Wage Cap for SDI: Like the rest of CA, the 1.3% SDI tax applies to your entire salary.
- SF Homelessness Gross Receipts Tax: A special tax for businesses (including some high-earning freelancers) with over $1M in receipts.
- Overpaid Executive Tax: A unique SF tax that applies to companies where the top executive earns significantly more than the average worker—often reflected in corporate overhead.
San Francisco vs. Los Angeles: The Tax Battle
High-intent comparison: how SF and LA stack up on sales tax, state income tax, city payroll tax, and RSU treatment in 2026.
| Tax Type | San Francisco (2026) | Los Angeles (2026) |
|---|---|---|
| Sales Tax | 8.625% (Lower than LA) | 9.5% (Higher) |
| Income Tax (State) | Up to 13.3% | Up to 13.3% |
| City Payroll Tax | Applies to Businesses | None |
| Stock Options (RSU) | Taxed as Regular Income | Taxed as Regular Income |
Tech Workers & RSU Taxation in SF
San Francisco is home to workers at Google, Meta, Uber, and countless startups. A major concern: RSUs (Restricted Stock Units).
In San Francisco, stock income is included in your CA-AGI (Adjusted Gross Income). When your shares "vest" (become yours), they are treated like a regular bonus for tax purposes.
Tip: When you have vesting events, include RSU/supplemental income in your income estimate where possible. RSUs are often withheld at a flat supplemental rate at payout, which can lead to underpayment or overpayment of tax by year-end—plan accordingly.
Understanding the SF Business Tax for Freelancers
If you work as a contractor (1099) in San Francisco, you are generally subject to the San Francisco Gross Receipts Tax.
Registration
Anyone doing business in SF must pay an annual registration fee (roughly $50 to several thousand dollars, depending on gross receipts and activity).
Small Business Exemption
Typically, businesses with gross receipts below $2.25M (2026 threshold) are exempt from the main Gross Receipts Tax, but they must still file returns and may owe the registration fee.
Cost of Living Adjustment (COLA) – "The Real Take-Home"
$150k in San Francisco is not the same as $150k elsewhere. Understanding your net effective income helps you plan.
SF Housing Premium
The average cost of rent in San Francisco is roughly 30% higher than the state average.
Net Effective Income
A useful way to compare: Salary − Taxes − Average Rent = Disposable Income. Our calculator gives you the tax side; factor in local rent and costs to see your real take-home in SF.