Permits & licenses

Home Occupation Permit in the City of Sacramento: Rules and How to Apply

Running a business from your home in the City of Sacramento? Learn the home occupation permit rules, how it ties to your BOT, and what the city allows.

Last reviewed October 20, 2026 · 6 min read

On this page
  1. Who needs a home occupation permit?
  2. What are the rules for home businesses?
  3. How do I apply, step by step?
  4. What does it cost?
  5. How long does it take?
  6. How long does the permit last?

The city's goal is simple. Your neighbors shouldn't be able to tell a business is there.

Who needs a home occupation permit?

Anyone running a business out of a residence in the City of Sacramento. The city's requirements sheet is clear that if you don't live within city limits, you don't need this city permit. Check your address before you apply. A Sacramento mailing address doesn't always mean city limits.

If you live in unincorporated Sacramento County, see our county license guide instead.

What are the rules for home businesses?

Five home business rules from Sacramento City Code: business stays secondary, one non-resident worker, visitor limits, one vehicle and no signs, building code applies. Key rules from City Code 17.228.230. Diagram: Sac Business Launch.

Five home business rules from Sacramento City Code: business stays secondary, one non-resident worker, visitor limits, one vehicle and no signs, building code applies. Key rules from City Code 17.228.230. Diagram: Sac Business Launch.

Sacramento City Code 17.228.230 sets rules for all home occupations:

  • The home stays a home. The business must be "clearly incidental and subordinate" to living there. It can be in the house or an accessory building on the lot.

  • One outside worker on site. No more than one person who doesn't live there may work at the home. Off-site staff are fine.

  • Visitor limits. No more than one client per hour and no more than eight per day. A family unit counts as one.

  • Building code applies. The home must meet any building code standards that apply because of the business.

  • One vehicle. Only one vehicle tied to the business is allowed. The code limits its size.

  • No signs. No sign, nameplate, or advertising at the home.

Some business types have extra special conditions, and some aren't allowed as home occupations. If your use isn't on the allowed list or can't meet the rules, the city says you would need a conditional use permit instead. That's a bigger and more costly process.

What you'll need

  • Your BOT application (online or paper)

  • The home occupation permit application (included automatically online)

  • A clear description of your business activities

  • Your signed statement that you've read the home occupation rules (part of the application)

How do I apply, step by step?

  1. Confirm you're in city limits. If not, stop here. The city permit doesn't apply, and the fee isn't refundable.

  2. Ask Planning if you're unsure about your use. The city suggests emailing planning@cityofsacramento.org or calling 311 (916-264-5011 from outside city limits).

  3. Apply for your BOT. Online BOT applications submit the home occupation permit automatically. Paper applications go to the Revenue Division with the BOT application.

  4. Planning reviews it. Staff may contact you with questions.

  5. Get your BOT certificate. If approved, the Revenue Division lets you know and provides your BOT certificate.

If you're denied: The city says it will void and refund your BOT fees. The home occupation permit fee is not refunded.

What does it cost?

ItemHome occupation permit

CostOne-time fee (see note above)

How oftenOnce

ItemBOT certificate

CostBased on business type and gross receipts

How oftenEvery year

ItemConditional use permit (if needed)

CostMuch higher; ask Planning

How oftenOnce

How long does it take?

The city doesn't post a set timeline. Your permit is reviewed along with your BOT, so timing depends on Planning's review. Apply before you start operating.

How long does the permit last?

The city says it's good as long as you keep your BOT current and run the business at the address listed. If you move, you'll need a new permit for the new home.

Starting a home business? We'll go over the permit steps with you on a free Business Launch Audit.

This is general information, not legal or tax advice. Fees and rules change, so please check the linked official pages before you file or pay.

Questions people ask

Do I need a home occupation permit to work from home in Sacramento?

If your home is inside City of Sacramento limits and you run a business from it, yes. The city says you need a home occupation permit in addition to the Business Operations Tax certificate. If you live outside city limits, the city permit does not apply.

How much is the home occupation permit?

It is a one-time fee, but city documents we found list different amounts: an older requirements sheet says $154, and a 2025 city fee worksheet listed $234 plus an 8% planning technology fee. Confirm the current fee with the city before you apply.

Can clients come to my home?

Usually yes, with limits. City Code 17.228.230 allows no more than one client per hour and no more than eight per day. A family group counts as one.

Can I put a sign in my yard or window?

No. The city code says no sign, nameplate, or other advertising may be displayed at the home.

How long is the permit good for?

The city says it stays good as long as you keep your BOT current and run the business at the address on the permit.

We walk Sacramento founders through the filings people usually miss.

See the Launch Audit
Words to know
  • Home occupation permit: City permission to run a low-key business from your home.

  • BOT: Business Operations Tax. The City of Sacramento's version of a business license.

  • Use permit: A special approval from the city or county for a business type that's only allowed after review.

  • Zoning: Local rules about what kinds of businesses can operate at each address.

Sources

  1. Home Occupations Permit Requirements (CDD-0099) - City of Sacramento · cityofsacramento.gov
  2. Sacramento City Code 17.228.230 Requirements applicable to all home occupations · codelibrary.amlegal.com
  3. Business Operations Tax - City of Sacramento · cityofsacramento.gov
  4. BOT Online Application: Getting Started - City of Sacramento · sacramento.hdlgov.com
  5. Planning Division - City of Sacramento · cityofsacramento.gov

This is general information for Sacramento and Northern California businesses. We are not attorneys or tax advisors, and this is not legal or tax advice. Check the official sources, and a local pro, before you act.