Facts about San Jose's Business Tax San Jose charges a business tax starting at $150 a year for up to eight employees. The tax generated about $39 million in 2012; by comparison the library operating budget is $32 million. Individuals with side jobs earning less than twice the federal poverty level, about $22,000, qualify for exemption from the tax, but still had to pay a $38 annual processing fee and file business income paperwork with the city. The City Council has extended a business tax amnesty through May in which delinquent filers may settle up without paying penalties. The City Council on Tuesday approved dropping the tax exemption fee starting in June, but those who hadn't paid it still owe for the previous four years, as much as $148.