Northern California Home (NCA Home)

Real Estate Transfer Tax

The Real Estate Transfer Tax is collected at the time ownership of a property such as a private residence is transferred, usually by sale. Real Estate Transfer Tax are normally paid by the seller. The tax is set at a percentage of the sale price. The law allows a county to impose a tax of up to $1.10 per $1,000 of value on every real estate transaction. This is usually expressed as $.55 per $500 of value in local ordinances imposing the tax. If a city also chooses to impose the tax, then the $1.10 rate is split between the city and county.

The Real Estate Transfer Tax is administered by the county which collects the tax on behalf of cities and transfers them any funds due. Thus, if a private home is sold for $300,000 in a county which has enacted a $1.10 per $1,000 Real Estate Transfer Tax the county would collect $3,300. If the county and a city within the county had had agreed to split the statutory Real Estate Transfer Tax amount, the city and county would each receive $1,925 (half of the statutory amount each). If a city imposes a Real Estate Transfer Tax which exceeds the statutory amount the entire statutory amount collected by the county goes to the county.

Many California cities have Real Estate Transfer Tax rates which exceed the county statutory amount.

Estimating the Real Estate Transfer Tax

Click below for the real estate transfer tax rate for a particular California city/county:

| Transfer Tax Rates Pages 1-3 | Transfer Tax Rates Pages 4-6 | Transfer Tax Rates Pages 7-9 | Transfer Tax Rates Pages 10-12 | Transfer Tax Rates Page 13 |

Statutory Exemptions from the Real Estate Transfer Tax

The California Revenue and Taxation Code, which provides the statutory authority for counties and cities to impose the transfer tax, specifically exempts from tax the following transactions:

Instruments in writing given to secure a debt,

Transfers whereby the federal or any state government, or agency, instrumentality or political subdivision thereof, acquires title to realty,

Transfers made to effect a plan of reorganization or adjustment confirmed under the Federal Bankruptcy Act, approved in certain equity receivership proceedings or whereby a mere change in identity, form or place of organization is effected,

Certain transfers made to effect an order of the Securities and Exchange Commission relating to the Public Utility Holding Company Act of 1935,

Transfers of an interest in a partnership (or, beginning January 1, 2000, an entity treated as a partnership for federal income tax purposes) that holds realty, if the partnership is treated as continuing under IRC § 708 and the continuing partnership continues to hold the realty,

Certain transfers in lieu of foreclosure,

Transfers, divisions or allocations of community, quasi-community or quasi-marital property between spouses pursuant to, or in contemplation of, a judgment under the Family Code,

Transfers by the State of California, or any political subdivision, agency or instrumentality thereof, pursuant to an agreement whereby the purchaser agrees to immediately re-convey the realty to the exempt agency,

Transfers by the State of California, or any political subdivision, agency or instrumentality thereof, to certain nonprofit corporations and

Transfers pursuant to certain inter vivos gifts or inheritances.