California Transfer Tax Explained: What Buyers and Sellers Pay
Transfer taxes are one of those closing costs that can catch California buyers and sellers off guard, especially in cities with additional transfer taxes on top of the standard county rate. While the base California county transfer tax is a modest $1.10 per $1,000 of sale price (0.11%), several cities layer on their own transfer taxes that can push the total to 1.5% or higher. And in Los Angeles, Measure ULA’s “mansion tax” adds 4–5.5% on high-value properties — a tax that can add hundreds of thousands of dollars to the cost of selling a luxury home.
Understanding transfer taxes before you buy or sell prevents unpleasant surprises at the closing table. This guide covers the state and county base rates, city add-on taxes, who typically pays, and how to calculate your specific liability.
California Transfer Tax Structure
| Tax Level | Rate | Who Typically Pays | Notes |
|---|---|---|---|
| County Documentary Transfer Tax | $1.10 per $1,000 ($0.55 per $500) | Seller (most counties) | Applies statewide, all property transfers |
| City Transfer Tax (where applicable) | $1.10–$15.00 per $1,000 | Varies by city and custom | Not all cities impose a city transfer tax |
| LA Measure ULA (above $5M) | 4% of total sale price | Seller | Properties selling above $5M |
| LA Measure ULA (above $10M) | 5.5% of total sale price | Seller | Properties selling above $10M |
County Transfer Tax: The Base Rate
Every county in California charges a documentary transfer tax of $1.10 per $1,000 of consideration (sale price) on the transfer of real property. This works out to 0.11% of the sale price. On a $785,000 home (the state median), the county transfer tax is $863.50.
In incorporated cities that have not enacted their own transfer tax, only the county rate applies. In unincorporated areas, only the county rate applies. This rate is set by state law and is uniform across all 58 counties.
City Transfer Taxes
California charter cities have the authority to impose their own transfer taxes on real property sales within city limits. These city taxes are in addition to (not instead of) the county tax. The most significant city transfer taxes include:
| City | City Transfer Tax Rate | Plus County Rate | Total Rate | Tax on $800K Sale |
|---|---|---|---|---|
| Los Angeles (under $5M) | $4.50 per $1,000 | $1.10 per $1,000 | $5.60 per $1,000 | $4,480 |
| San Francisco | $3.40–$6.00 per $1,000 (tiered) | None (city/county) | $3.40–$6.00 per $1,000 | $2,720–$4,800 |
| Oakland | $10.00–$25.00 per $1,000 (tiered) | $1.10 per $1,000 | $11.10–$26.10 | $8,880–$20,880 |
| Berkeley | $15.00 per $1,000 | $1.10 per $1,000 | $16.10 per $1,000 | $12,880 |
| San Jose | $3.30 per $1,000 | $1.10 per $1,000 | $4.40 per $1,000 | $3,520 |
| Sacramento | $2.75 per $1,000 | $1.10 per $1,000 | $3.85 per $1,000 | $3,080 |
| Richmond | $7.00 per $1,000 | $1.10 per $1,000 | $8.10 per $1,000 | $6,480 |
| Culver City | $4.50 per $1,000 | $1.10 per $1,000 | $5.60 per $1,000 | $4,480 |
| Pomona | $2.20 per $1,000 | $1.10 per $1,000 | $3.30 per $1,000 | $2,640 |
| San Diego | No city tax | $1.10 per $1,000 | $1.10 per $1,000 | $880 |
Note the dramatic variation. Selling an $800,000 home in San Diego costs $880 in transfer taxes. The same sale in Berkeley costs $12,880 — nearly 15 times more. This difference directly affects seller net proceeds.
San Francisco’s Tiered Transfer Tax
San Francisco has a unique tiered transfer tax structure (since it’s both a city and county, there’s no separate county tax):
| Sale Price Range | Transfer Tax Rate |
|---|---|
| $0–$250,000 | $2.50 per $500 ($5.00 per $1,000) |
| $250,001–$999,999 | $3.40 per $1,000 |
| $1,000,000–$4,999,999 | $3.75 per $1,000 |
| $5,000,000–$9,999,999 | $11.25 per $1,000 |
| $10,000,000–$24,999,999 | $13.75 per $1,000 |
| $25,000,000+ | $15.00 per $1,000 |
On San Francisco’s median home price of $1,350,000, the transfer tax is approximately $5,063. On a $5 million home, it’s $56,250. On a $25 million+ sale, the rate reaches 1.5% — a substantial closing cost.
Los Angeles Measure ULA (“Mansion Tax”)
Measure ULA, which took effect April 1, 2023, is the most significant new transfer tax in California. It imposes:
- 4% tax on the entire sale price for properties selling for $5 million or more
- 5.5% tax on the entire sale price for properties selling for $10 million or more
These rates are applied to the total sale price, not just the amount above the threshold. A $5 million sale generates a $200,000 Measure ULA tax (plus the existing $4.50/$1,000 city transfer tax of $22,500 and the $1.10/$1,000 county tax of $5,500). Total transfer taxes on a $5 million LA sale: approximately $228,000.
Measure ULA has had measurable effects on LA’s luxury market:
- Some sellers have reduced asking prices to just below the $5 million threshold
- Luxury transaction volume dropped significantly after the measure took effect
- Some developers and investors have shifted projects to adjacent cities outside LA city limits (Pasadena, Beverly Hills, Santa Monica — all separate cities not subject to Measure ULA)
- Legal challenges have been filed but the measure remains in effect
Revenue from Measure ULA funds affordable housing and tenant assistance programs. The tax applies to all real property transfers, including commercial properties, not just residential sales.
Oakland’s Tiered Transfer Tax
Oakland enacted Measure U (2022), creating one of the highest transfer tax rates in California:
| Sale Price | City Transfer Tax Rate (per $1,000) |
|---|---|
| Up to $300,000 | $10.00 |
| $300,001–$2,000,000 | $15.00 |
| $2,000,001–$5,000,000 | $17.50 |
| Over $5,000,000 | $25.00 |
On Oakland’s median home price of approximately $780,000, the city transfer tax alone is about $11,700, plus $858 in county transfer tax. Total: roughly $12,558 — a significant closing cost that directly impacts seller proceeds.
Who Pays Transfer Taxes?
California law doesn’t specify who pays transfer taxes — it’s a matter of local custom and negotiation. In practice:
- Northern California (Bay Area): The seller typically pays the county transfer tax, and the city transfer tax is split 50/50 between buyer and seller (in cities like Oakland and Berkeley). In San Francisco, the seller typically pays the full transfer tax.
- Southern California (LA, SD, OC): The seller typically pays the county transfer tax, and the city transfer tax (where applicable) is paid by the seller.
- Always negotiable: Transfer tax payment can be part of the negotiation between buyer and seller. In a buyer’s market, sellers may accept paying the full amount. In a seller’s market, buyers may offer to pay some or all of the transfer tax to strengthen their offer.
Check how transfer taxes affect your bottom line with our seller net proceeds calculator and closing cost calculator.
Transfer Tax Exemptions
Several types of transfers are exempt from transfer tax:
- Interspousal transfers: Transfers between spouses (including divorce)
- Transfers to revocable trusts: Placing property in your own living trust
- Inheritance: Transfers through death (probate or trust distribution)
- Certain government transfers: Foreclosures, tax sales
- Gifts with no consideration: In some cases (though gift tax at the federal level may apply)
Exemptions must be claimed on the deed at recording. Your escrow officer or attorney should identify applicable exemptions, but it’s worth verifying independently to avoid paying unnecessary taxes.
How to Calculate Your Transfer Tax
- Determine whether the property is in an incorporated city with a city transfer tax (check the list above or contact your escrow company)
- Calculate the county transfer tax: sale price ÷ 1,000 × $1.10
- Calculate the city transfer tax (if applicable): sale price ÷ 1,000 × city rate
- Check for tiered rates (SF, Oakland) or threshold taxes (LA Measure ULA)
- Add county + city amounts for the total transfer tax
Example: Selling a $1,200,000 home in the City of Los Angeles (below $5M threshold):
- County transfer tax: $1,200,000 ÷ 1,000 × $1.10 = $1,320
- City transfer tax: $1,200,000 ÷ 1,000 × $4.50 = $5,400
- Total transfer tax: $6,720
Model your full closing costs with our closing cost calculator and mortgage calculator.
Compare With Other States
Considering other markets? Here’s how other states compare:
- Michigan Transfer Tax Explained: State and County Rates
- Illinois Transfer Tax Explained: State, County, and City Rates
- Pennsylvania Transfer Tax Explained: What Buyers and Sellers Pay
Frequently Asked Questions
How much is the transfer tax in California?
The base county transfer tax is $1.10 per $1,000 of sale price (0.11%) and applies statewide. Cities may add their own transfer taxes ranging from $1.10 to $25.00 per $1,000 depending on the city and sale price tier. Total transfer taxes range from 0.11% (cities with no city tax) to 2.5%+ (Berkeley, Oakland, high-value LA sales).
Who pays transfer tax in California — buyer or seller?
Payment is determined by local custom and negotiation, not state law. In most California markets, the seller pays the county transfer tax. City transfer tax payment varies: sellers typically pay in Southern California, while it’s often split or negotiable in Northern California. The payment responsibility can be written into the purchase agreement.
What is Measure ULA in Los Angeles?
Measure ULA (effective April 2023) imposes a 4% transfer tax on property sales of $5 million or more and 5.5% on sales of $10 million or more within the City of Los Angeles. The tax applies to the entire sale price, not just the amount above the threshold. On a $5 million sale, the ULA tax alone is $200,000. Revenue funds affordable housing programs. The tax does not apply in adjacent cities like Beverly Hills, Pasadena, or Santa Monica.
Can transfer taxes be deducted on my taxes?
For sellers, transfer taxes are subtracted from your sale proceeds when calculating capital gains — reducing your taxable gain. For buyers, transfer taxes are added to your cost basis. Neither buyers nor sellers can deduct transfer taxes as an itemized deduction on federal income tax returns. Consult a tax professional for your specific situation.
Are there transfer taxes on commercial property in California?
Yes. The same county and city transfer taxes apply to commercial property transfers. There’s no distinction between residential and commercial property for transfer tax purposes. Measure ULA in LA and Measure U in Oakland apply to commercial sales above their respective thresholds, which has affected commercial real estate investment patterns in those cities.
How do I avoid transfer taxes in California?
Transfer taxes are mandatory on most property sales and cannot be avoided through structuring. However, certain transfers are exempt: interspousal transfers, transfers to revocable trusts, inheritance, and some entity restructurings. Selling at a price just below a threshold (like LA’s $5 million Measure ULA trigger) is a legal strategy some sellers employ, though it means accepting a lower sale price. Locate your property outside high-transfer-tax cities (choosing Glendale over LA city, for example) is another approach — but this is a pre-purchase decision rather than a post-purchase strategy.