Oakland's minimum wage is $17.34 an hour, effective January 1, 2026, and the city says it applies to employers with employees who work 2 or more hours in a week in Oakland. That's above California's $16.90 state rate, and as of October 21, 2026 the city's page doesn't announce a 2027 Oakland figure. The same city law requires paid sick leave that accrues at 1 hour for every 30 hours worked.
For a cleaning company with jobs inside Oakland, the city's wage and sick leave rules sit on top of California's, and the city adds an annual business tax of its own. This page covers the Oakland rate, sick leave accrual, the business tax, how California sales tax treats cleaning, and what it all means for your books. Payroll registration and the employee test are on bookkeeping for California cleaning businesses.
The Oakland minimum wage
Since January 1, 2026, the Oakland minimum wage has been $17.34 an hour. The city's Department of Workplace and Employment Standards says it applies to employers with employees who work 2 or more hours in a week in Oakland, under Oakland Municipal Code Chapter 5.92. As of October 21, 2026, that page doesn't post a 2027 Oakland rate. Which of your crews and jobs the ordinance reaches is a question for the city or an employment attorney.
Source: City of Oakland, Department of Workplace and Employment Standards, Oakland Minimum Wage, Sick Leave, and Other Labor Laws
Statewide, California's minimum wage is $16.90 an hour, and the Department of Industrial Relations announced on August 13, 2026 that it goes to $17.40 on January 1, 2027.
Source: California Department of Industrial Relations, Labor Commissioner, Minimum Wage FAQ
Source: California Department of Industrial Relations, News Release 2026-66 (August 13, 2026)
Paid sick leave under Measure FF
Oakland's minimum wage and sick leave law, Measure FF in Oakland Municipal Code Chapter 5.92, requires paid sick leave that accrues at 1 hour for every 30 hours worked. The city's page doesn't state a cap or carryover rule, so this page doesn't cover those.
Source: City of Oakland, Department of Workplace and Employment Standards, Oakland Minimum Wage, Sick Leave, and Other Labor Laws
The Oakland business tax
The city's Finance Department says anyone who conducts business in Oakland must file and pay an annual business tax and hold an Oakland Business Tax Certificate. The page says that includes businesses located outside Oakland that operate in the city. Whether your company owes it, and how much, is a question for the city or your CPA.
Source: City of Oakland, Finance Department (Business Tax), Who is required to pay business tax?
California sales tax on Oakland jobs
Under California's general service-enterprise rule, Regulation 1501, residential and commercial cleaning aren't taxable. That's the general rule applied to cleaning, not a ruling about it, since no California Department of Tax and Fee Administration source naming house cleaning or janitorial service was found. The same rule makes the cleaner the consumer of its supplies, so tax is owed on the supplies it buys. The conditions are on my California sales tax page.
Source: California Department of Tax and Fee Administration, Regulation 1501, Service Enterprises Generally
What Oakland means for your books
Oakland ties two numbers to hours: the wage floor and the sick leave balance. I record wages at the rate each person is actually paid and keep sick leave balances by employee, so every single hour on a balance ties back to hours on a timesheet, and if anyone asks where a number came from, the answer is already in the books. The annual business tax gets its own expense account instead of disappearing into overhead, and supplies go in at their full cost, tax included. More on how I set up payroll for cleaning businesses.
I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep wages, sick leave, and the business tax recorded; tax questions go to your CPA, and coverage questions go to the city or an employment attorney.
Rules checked against the sources above as of October 20, 2026. Rates and rules change; confirm current figures with the agency or your CPA.