San Diego rental unit business tax

San Diego landlord tax bill

The City of San Diego bills $50 per parcel plus $5 a unit for 1 to 10 rental units (2026).
The City presumes that owners without a homeowners' exemption on file with the County rent out the property, and bills them.
Landlords who pay after March 1 owe at least $25 more, plus 1% a month from April 1 (2026).

A Normal Heights owner who rents out both units of a duplex gets one bill a year from the City Treasurer for the parcel.

The City charges a flat yearly tax per parcel by property type and unit count, plus a $4 state fee (2026). The City does not prorate the tax for part of a year.

Anyone who owns, operates or manages residential property held out for rent over six days a year owes the tax.

Homeowners renting a backyard unit or room
Owners with a homeowners' exemption owe the tax when they rent out all or part of the home.
Owners who do not rent
Owners billed for their own home return the exemption form with proof of residence, such as DMV registration.
Short-term hosts
Hosts need an active, paid rental unit business tax account before applying for a short-term rental license.

Pay by March 1
The City Treasurer mails bills from January; existing owners pay by March 1, and new owners within 30 days of the bill's mailing.
Late charges
The City adds the greater of $25 or 10% of the tax, then 1% a month from one month after the due date. The City also back-bills up to three years, with a late fee for each year.

The duplex owner pays $64 by March 1, 2026, or $89 plus 1% a month if late.