California Transfer Tax: How Much Will You Pay?
California's documentary transfer tax is $1.10 per $1,000 of the sale price, charged by the county. Many cities add their own transfer tax on top of the county rate. On a $500,000 home with no city tax, you pay $550. In cities like LA or San Francisco, transfer taxes can reach $2,000 to $5,000 or more. Here is the complete guide.
Cost Breakdown
| Item | Traditional | With Acquily |
|---|
| County Transfer Tax (all CA) | $550 | $0 |
| City of Los Angeles | $2,250 | $0 |
| City of San Francisco | $3,400 | $0 |
| City of Oakland | $7,500 | $0 |
| City of Sacramento | $0 | $0 |
| City of Bakersfield | $0 | $0 |
| City of Fresno | $0 | $0 |
How California Transfer Tax Works
California's documentary transfer tax is imposed when real property changes ownership. The county rate is $1.10 per $1,000 of the sale price, which is set by state law and applies to every real estate transaction in California. This tax is almost always paid by the seller.
In addition to the county tax, certain California cities impose their own transfer tax. These city taxes vary widely. Los Angeles charges $4.50 per $1,000 (plus a mansion tax on sales over $5 million). San Francisco has a graduated rate from $3.40 to $6.00 per $1,000. Oakland's rate ranges from $10 to $25 per $1,000 depending on the sale price.
Central Valley: No City Transfer Tax
One advantage of selling property in California's Central Valley is that most cities do not charge a city transfer tax. Bakersfield, Fresno, Modesto, Stockton, Visalia, and Sacramento all have only the county transfer tax of $1.10 per $1,000. This makes transfer taxes significantly cheaper than in coastal California cities.
Transfer Tax Exemptions
Some transactions are exempt from California transfer tax. These include transfers between spouses during divorce, transfers to a revocable trust, and certain transfers related to reorganization of entities. Foreclosure-related transfers and transfers to government agencies are also exempt. Consult a tax professional for specific exemption questions.
Frequently Asked Questions
Who pays transfer tax in California?
In most California counties, the seller pays the transfer tax. However, this is negotiable and in some markets, the buyer pays part or all of the transfer tax. Custom varies by region. Acquily covers all transfer taxes on cash purchases.
How is transfer tax calculated in California?
California transfer tax is calculated at $1.10 per $1,000 of the sale price for the county portion. City transfer taxes, if applicable, are calculated separately at the city's rate. The total is paid at closing through escrow.
Can I avoid paying transfer tax in California?
The only ways to avoid transfer tax are through an exempt transaction (like a divorce transfer) or by selling to a cash buyer like Acquily who covers all transfer taxes. In a traditional sale, transfer tax is mandatory.
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