Home Business Rules in San Diego, CA (2026)

In San Diego, 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 San Diego Development Services Department (DSD) or San Diego Planning Department 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 San Diego.

Permit Requirements

Permit Required: Home Occupation Permit. Fee: $175. Apply through the San Diego Development Services Department (DSD) or online at their permit portal. Phone: (619) 446-5000. 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 San Diego: 1. No customers or clients may visit the home 2. No employees other than residents may work at the home address 3. No external evidence of business — no signs, altered appearance, commercial vehicles 4. Business activity must be incidental to residential use 5. Maximum one commercial vehicle (under 6,000 lbs GVW) may be kept on premises 6. No mechanical equipment generating noise, vibration, odors beyond normal residential levels 7. Maximum 25% of floor area used for business 8. No retail sales from the home (except Cottage Food) 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
• •No employees other than residents may work at the home address
• •No external evidence of business — no signs, altered appearance, commercial vehicles
• •Business activity must be incidental to residential use
• •Maximum one commercial vehicle (under 6,000 lbs GVW) may be kept on premises
• •No mechanical equipment generating noise, vibration, odors beyond normal residential levels
• •Maximum 25% of floor area used for business
• •No retail sales from the home (except Cottage Food)

Prohibited Business Types

The following business types are specifically prohibited from operating as home businesses in San Diego: 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 permit obtained); Firearms or ammunition sales; Adult entertainment; Tattoo parlor; Any business generating pedestrian or vehicle traffic to the home. This list may not be exhaustive — contact the San Diego Planning Department 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 permit obtained)
• ✕Firearms or ammunition sales
• ✕Adult entertainment
• ✕Tattoo parlor
• ✕Any business generating pedestrian or vehicle traffic to the home

Cottage Food Law

Frequently Asked Questions