Tax Lawyers in San Francisco

San Francisco, operating as a consolidated city-county, features a multi-layered tax structure integrating California’s state tax system with its own local levies, impacting both residents and businesses. Its residents are subject to California’s progressive income tax, ranging from 1% to 12.3%. Those earning over $1 million pay an extra 1% Mental Health Services Tax-bringing the top rate to 13.3%. The local sales tax rate is 8.625%, combining the state’s 7.25% with 1.375% from the city. Groceries and prescription drugs are tax-exempt.

Property taxes follow Proposition 13, with a base rate of 1% of assessed value (usually the purchase price). The city no longer has a Payroll Expense Tax. Instead, businesses pay a Gross Receipts Tax based on revenue from city activities. A 14% hotel tax applies to short-term stays, but is waived for guests staying 30+ days. State-level excise taxes also apply to gasoline, tobacco, alcohol, and certain vehicles.

Tax compliance and collection are overseen the California Franchise Tax Board (FTB) and the Department of Tax and Fee Administration (CDTFA) at the state level, while the San Francisco Office of the Treasurer & Tax Collector and the Assessor-Recorder’s Office manage local taxation and property assessments within the city.

San Francisco’s tax system combines California’s state levies with local taxes. The income tax follows California’s progressive structure (1% to 12.3%, with an extra 1% over $1M, the highest in US). High earners face steep taxation, while low-income residents benefit from credits and deductions. Social Security is exempt, but other retirement income is fully taxable. Capital gains are taxed as regular income.

Businesses operating as corporations in San Francisco are subject to California’s corporate tax rate of 8.84% on their net income attributable to the state. The combined sales tax averages 8.625% (state 7.25% plus local 1.375%), with exemptions for most groceries and prescriptions.

California levies high excise taxes on gasoline ($0.596/gallon) and also taxes tobacco, alcohol, and vehicles.

Also, San Francisco imposes a 14% hotel tax for stays under 30 days, a Real Property Transfer Tax, and a Utility Users Tax. California has no estate or inheritance tax.

Despite its high taxes, the city of San Francisco exempts some income sources. They include:

• Social Security benefits
• Unemployment compensation
• State income refund
• Disability insurance and certain employer-provided benefits
• Grants paid to low-income individuals
• Life insurance proceeds
• Some tax credits (e.g., low-income and renter credits)

While the city of San Francisco exempts these incomes, federal taxes still apply.

Yes, the city of San Francisco provides:

• Property tax exemptions for homeowners, seniors, disabled individuals, and veterans.
• Sales tax exemptions for groceries, prescription medications, and medical equipment.
• Income tax exemptions on Social Security benefits and some retirement distributions.
• Green energy tax incentives for installing solar panels and energy-efficient appliances.

These exemptions help reduce overall tax burdens for San Francisco residents and businesses.

The cost of hiring a San Francisco tax lawyer is influenced by the complexity of your tax issue and the legal work involved.

TaxLawyer.com simplifies the process by helping San Francisco residents find qualified San Francisco tax lawyers who deliver expert guidance without overwhelming your finances, offering tailored solutions to fit your needs.

When looking for a San Francisco tax attorney, follow these steps:

• Identify your tax problem, whether it’s an IRS audit, offshore tax issues, or tax relief.
• Verify the credentials and expertise of the tax attorney in San Francisco.
• Arrange an initial consultation to assess your legal options.
• Clarify fee structures and legal agreements before hiring.

At TaxLawyer.com, we make this process easier by connecting San Francisco residents with skilled tax attorneys who can provide effective solutions.