San Diego will consider a new tax on second homes in the city soon. Tomorrow, 2/25/2026, is the first subcommittee hearing.
Per Voice of San Diego this tax will be: “For the first year, $8,000 per home. The next year it would be $10,000 per home. And there would be additional surcharges for corporate-owned empty homes, starting at $4,000 in 2027.”
There are about 5,000 such units in San Diego today. The owners of these properties pay property taxes and will now have an additional tax to pay.
How are the number of second homes subject to this tax tracked? Apparently by the number of properties that claim the Rental Unit Business Tax Exemption. This form is in image below, and property owners select a descriptor for their property. Check box 2 is for “Vacation Home / Second Home – Property is not available for rent any part of the tax year. Not reported on Income Tax Forms as income property. Proof Required. Provide copy of Utility bill.”

The Rental Unit Business Tax varies, but for many properties is basically $55 per year.

My prediction is that owners that may be subject to the proposed new tax will simply not claim the Rental Unit Business Tax exemption and will have to pay $55 (roughly) to avoid an $8,000 to $12,000 tax. Perhaps the city will deploy in-person auditors to the properties that formerly claimed this exemption. Or we’ll have random audits for properties across the city.
Either way I would be very surprised if the projected revenue of $51,000,000 per year is close to realized.




























