Government
Our Solano Business First! team, made of county, city, education, workforce and service providers, was established to listen to the voice of industry. We recognize that your success moves our economy forward, and we will provide a rapid, collaborative response to your needs.
Local Contacts. If you have a specific need or concern, please contact Solano EDC for a referral or contact one of the city or county representatives listed below.
City Data. If you are unfamiliar with the diverse character of our cities, see the City Profiles for a map and quick introduction.
Tax Profile
Here is a quick rundown of the taxes typically paid by residents and businesses in California. Local assessments account for minor variation among jurisdictions in property tax and sales tax rates. The tax impact on your business may be lessened by applying for one of the tax credits available to many California businesses, which are summarized below.
| Tax Profile - State of California | |||
| TAX | BASIS | RATE | AGENCY |
| Corporate Income and Franchise Tax | Net income apportioned to California | Corporation 8.84% | Franchise Tax Board |
| S-Corp 1.5% | |||
| Bank/Financial Corp 10.84% | |||
| S-Bank/Financial S-Corp 3.5% | |||
| Sales and Use Tax | Receipts from sale or lease of most tangible items | Solano County 8.38% | Board of Equalization |
| City of Benicia 8.38% | |||
| City of Fairfield 8.375% | |||
| City of Rio Vista 8.13% | |||
| City of Vacaville 8.13% | |||
| City of Vallejo 8.38% | |||
| Property Tax | Real and personal property, but not business inventory or personal effects | 1.1% to 1.6% | Solano Co. Assessor |
| Solano Co. Tax Collector | |||
| Board of Equalization | |||
| Workers' Compensation Insurance | Payroll and occupation | Variable depending on occupation classification | Dept of Industrial Relations |
| Personal Income Tax | Taxable personal income | 1% to 12.3% | Franchise Tax Board |
| Disability Insurance | First $122,909 of wages | 1.1% (paid by employee) | Employment Development Department |
| Employment Training Tax | First $7,000 of wages per employee per year | 0.10% | Employment Development Department |
| Source: Franchise Tax Board; Employment Development Department; Dept of Industrial Relations;2022 California Employers' Guide (DE-44), August 2021; Board of Equalization, Solano Co. Assessor June 2022. | |||
State Tax Credits for Businesses
The State of California offers several tax credits to help businesses reduce their costs. Click to find out if your business might qualify.
California Competes – 5-year tax credit that businesses apply for in advance through a competitive application process. GO-Biz FAQ Sheet: Learn more here.
Manufacturers’ Investment Credit – 6% credit for acquisition or construction of qualified property, including real property and some equipment. Learn more here.
California Research Credit – 24% of basic research payments, 15% of excess research expenses. Learn more here.
Sales and Use Tax Exclusion, Alternative Energy and Transportation – Full exclusion for qualifying manufacturers of these products. Learn more here.
Sales and Use Tax Exclusion, Manufacturing and R&D – Partial exclusion for qualifying purchases related to manufacturing and R&D. Learn more here.
Further information about state incentives and tax:
Franchise Tax Board (FTB)
Governor’s Office of Business and Economic Development (GO-Biz)