Real Estate Transfer Tax in California: Complete Guide 2026
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Real Estate Transfer Tax in California: Complete Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
California imposes a documentary transfer tax on real estate conveyances at both the county and city levels. The base county rate is approximately ~$1.10 per ~$1,000 of consideration (roughly ~0.11%), which is relatively low compared to many other states. However, several California cities impose their own transfer taxes that significantly increase the total burden. Los Angeles, San Francisco, Oakland, and a handful of other cities have adopted progressive transfer tax structures with rates that can reach approximately ~5.5% or more on high-value transactions. Understanding where a property is located and the applicable local rates is essential for accurately estimating closing costs.
California Transfer Tax Rates (2026)
County Documentary Transfer Tax (Statewide)
| Applies To | Rate |
|---|---|
| All real property conveyances | ~$1.10 per ~$1,000 of consideration (~0.11%) |
City Transfer Tax Rates (Selected)
| City | Base Rate | High-Value Surcharge | Maximum Rate |
|---|---|---|---|
| San Francisco | ~$2.50 per ~$500 for sales up to ~$250,000 | Progressive tiers up to ~$25 million+ | ~6.0% (over ~$25 million) |
| Los Angeles (Measure ULA) | ~$2.20 per ~$500 (~0.45%) base | ~4.0% over ~$5 million; ~5.5% over ~$10 million | ~5.5% |
| Oakland (Measure U) | ~$5 per ~$1,000 (~0.5%) base | Graduated up to ~2.5% over ~$2 million | ~2.5% |
| Berkeley | ~$15 per ~$1,000 (~1.5%) | None | ~1.5% |
| Culver City | ~$4.50 per ~$1,000 (~0.45%) | None | ~0.45% |
| San Jose | ~$3.30 per ~$1,000 (~0.33%) | None | ~0.33% |
| Sacramento | County rate only | None | ~0.11% |
| San Diego | County rate only | None | ~0.11% |
San Francisco Transfer Tax Tiers (Detailed)
| Consideration | Rate |
|---|---|
| Up to ~$250,000 | ~0.50% |
| ~$250,001 to ~$999,999 | ~0.68% |
| ~$1,000,000 to ~$4,999,999 | ~0.75% |
| ~$5,000,000 to ~$9,999,999 | ~2.25% |
| ~$10,000,000 to ~$24,999,999 | ~5.50% |
| ~$25,000,000 and above | ~6.00% |
How California Transfer Tax Works
County Documentary Transfer Tax
California Revenue and Taxation Code Section 11911 authorizes counties to levy a documentary transfer tax at a rate of approximately ~$1.10 per ~$1,000 of the property’s sale price or fair market value. This tax applies to all transfers of real property by deed or other instrument, with certain exemptions. The county tax applies uniformly statewide and is typically split between buyer and seller by local custom, though in Southern California the seller customarily pays, while in Northern California the cost is often split.
City Transfer Taxes
California charter cities and some general law cities may impose their own transfer taxes. These city taxes are in addition to, not a replacement for, the county tax. In cities that impose a transfer tax, the county rate is usually credited against the city rate (meaning you pay only the city rate, which includes the county portion). San Francisco, Los Angeles, Oakland, and Berkeley have the most significant city transfer taxes. Los Angeles adopted Measure ULA in 2022, imposing approximately ~4% on sales above ~$5 million and approximately ~5.5% on sales above ~$10 million, with revenue directed toward affordable housing and homelessness programs.
Who Pays
Custom varies by region. In Southern California, the seller traditionally pays the full transfer tax. In Northern California, buyer and seller often split the cost equally. In all cases, the allocation is negotiable and should be addressed in the purchase agreement. In new construction, developers may pass transfer tax costs to the buyer.
Exemptions
Common exemptions include transfers between spouses (including divorce-related transfers), transfers to or from government entities, certain transfers to revocable trusts where the transferor is the beneficiary, and transfers resulting from court orders. Foreclosure sales and deeds in lieu of foreclosure are generally subject to transfer tax based on the remaining debt balance.
Comparison to Other States
| State | Transfer Tax Rate | Notes |
|---|---|---|
| California (county only) | ~0.11% | Among the lowest base rates |
| California (San Francisco, high-value) | Up to ~6.0% | Among the highest city rates |
| California (Los Angeles, Measure ULA) | Up to ~5.5% | Applies above ~$5 million |
| New York (NYC) | ~0.4% state + ~1%—~2.625% city | Plus mansion tax |
| Florida | ~0.7% | Documentary stamp tax |
| Texas | ~0% | No transfer tax |
| Washington | ~1.1%—~3.0% | Tiered by value |
California’s transfer tax picture is highly location-dependent. A sale in San Diego incurs approximately ~0.11%, while an identical-value sale in San Francisco could face approximately ~5.5% to ~6.0%.
Tips for Buyers and Sellers
- Verify the exact city transfer tax rate before listing or making an offer. The difference between ~0.11% (county only) and ~5.5% (Los Angeles Measure ULA) on a ~$10 million property is approximately ~$539,000.
- Understand the Measure ULA thresholds in Los Angeles. The ~4% rate kicks in at ~$5,000,001 and the ~5.5% rate at ~$10,000,001. Pricing just below these thresholds can save hundreds of thousands of dollars.
- Negotiate who pays the transfer tax. While custom varies by region, the allocation is always negotiable. In high-tax cities, this is a significant negotiation point.
- Confirm exemptions with your title company. Interspousal transfers, trust transfers, and certain reorganizations may qualify for exemptions that can save substantial amounts.
- Factor transfer taxes into investment property analysis. For real estate investors, transfer taxes on both acquisition and disposition can significantly affect overall returns, particularly in high-tax cities.
- Monitor local ballot measures. Several California cities have proposed or passed new transfer tax measures in recent years. San Francisco’s rates have been revised multiple times.
- 1031 exchange transactions still owe transfer tax. While capital gains may be deferred, transfer taxes are due on each leg of the exchange per capital gains tax rules.
Key Takeaways
- California’s base county transfer tax rate is approximately ~0.11%, among the lowest in the nation
- City transfer taxes can dramatically increase the total rate, reaching approximately ~5.5% to ~6.0% in Los Angeles and San Francisco on high-value properties
- Los Angeles Measure ULA imposes approximately ~4% above ~$5 million and approximately ~5.5% above ~$10 million, directed toward affordable housing
- San Francisco’s graduated transfer tax reaches approximately ~6.0% on sales above ~$25 million
- Custom on who pays varies by region: sellers pay in Southern California, costs are often split in Northern California
- Many California cities have no city transfer tax, meaning only the ~0.11% county rate applies
Next Steps
- See the full California tax picture at Taxes in California: State Tax Guide 2026
- Learn about capital gains on real estate at Capital Gains Tax in California 2026
- Compare state tax burdens at State Income Tax Rates Comparison 2026
- Calculate your federal bracket with the Tax Bracket Calculator 2026
- Get local help: Find a CPA Near You