Home Business Rules in Sacramento, CA (2026)

In Sacramento, CA, home-based businesses are permitted subject to specific rules designed to preserve residential character while allowing residents to run legitimate businesses from their homes. A Home Occupation Permit is required before operating. The Sacramento Community Development Department — Building Division or Sacramento Community Development Department — Planning Division handles home occupation applications and enforcement. Regulations generally prohibit on-site employees, customer visits, and any external evidence of business activity. Below you will find the current permit requirements, restrictions, prohibited business types, and cottage food law provisions for Sacramento.

Permit Requirements

Permit Required: Home Occupation Permit. Fee: $125. Apply through the Sacramento Community Development Department — Building Division or online at their permit portal. Phone: (916) 808-8300. Permits typically must be renewed annually. Operating without a required home occupation permit can result in fines and a requirement to cease business activity immediately.

Operating Restrictions

Home Business Restrictions in Sacramento: 1. No customers or clients may visit the home for business purposes 2. No employees other than residents may work at the home address 3. No external evidence of business — no signs, commercial vehicles, altered appearance 4. Business activity must be incidental and secondary to residential use 5. Maximum 25% of floor area used for business 6. No mechanical equipment generating noise, vibration, or odors beyond residential norm 7. No storage of hazardous materials 8. No delivery of commercial goods to premises in commercial vehicles Violations of home occupation rules can result in complaints from neighbors, code enforcement investigations, permit revocation, and daily fines.

• •No customers or clients may visit the home for business purposes
• •No employees other than residents may work at the home address
• •No external evidence of business — no signs, commercial vehicles, altered appearance
• •Business activity must be incidental and secondary to residential use
• •Maximum 25% of floor area used for business
• •No mechanical equipment generating noise, vibration, or odors beyond residential norm
• •No storage of hazardous materials
• •No delivery of commercial goods to premises in commercial vehicles

Prohibited Business Types

The following business types are specifically prohibited from operating as home businesses in Sacramento: Auto repair or body work; Beauty salon or barber shop with on-site clients; Medical or dental office with patient visits; Food preparation for sale (unless Cottage Food or MEHKO permit obtained); Firearms or ammunition dealer; Adult entertainment; Any business generating regular pedestrian or vehicle traffic to the home. This list may not be exhaustive — contact the Sacramento Community Development Department — Planning Division to verify whether your specific business type is allowed under home occupation rules.

• ✕Auto repair or body work
• ✕Beauty salon or barber shop with on-site clients
• ✕Medical or dental office with patient visits
• ✕Food preparation for sale (unless Cottage Food or MEHKO permit obtained)
• ✕Firearms or ammunition dealer
• ✕Adult entertainment
• ✕Any business generating regular pedestrian or vehicle traffic to the home

Cottage Food Law

Frequently Asked Questions