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Taxes

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SNAPSHOT:

Tax highlights. The city will work with you to reduce taxes and other costs of doing business.

  • Property Tax limited to 1% + voter approved assessments

  • No inventory tax, no inheritance tax

  • Tax credits for investment and new hires

  • Taxpayer-funded initiatives to improve operating environment

downtown merced tower
Local Taxes

Local Taxes & Licenses

Sources: City of Merced Finance Department; Merced County Assessor's Office (March 2022).

Employment Taxes
Tax Credits

Employment Taxes

Source: California Employment Development Department, California Employer's Guide (DE-44);  (Aug 2024).

State & Federal Tax Credits for Businesses

More about Tax Credits: Incentives & Financing

Tax Credits for Investment

  • California Competes

  • California Electric Vehicle Infrastructure Project

  • Manufacturing & R&D Equipment Exemption

  • Opportunity Zones (Merced has 7)

  • Sales and Use Tax Exclusion (STE)

Tax Credits for Hiring/Training

  • California Competes

  • New Employment Credit

  • Employment Training Panel (ETP)

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