Dec
03
2018

City Transfer Tax Update

Happy December!  Last month voters passed some ballot measures that will affect transfer tax rates within certain cities.  If you intend to buy or sell a home in the following cities next year this could apply to you.

Starting next year, possibly as early as January 1st, the following changes will occur:

ALAMEDA COUNTY
Berkeley (Measure P)

  • For sales above $1.5 mil the transfer tax rate will increase from $15 / $1000 (1.5%) to $25 / $1000 (2.5%) of the sales price
  • For sales below $1.5 mil the rate will remain the same at $15 / $1000 of the sales price

Hayward (Measure T)

  • For all sales the transfer tax rate will increase from $4.50 / $1000 to $8.50 / $1000 of the sales price

Oakland (Measure X)
The transfer tax rate will be changing from $15 / $1000 for all sales to a tiered plan based on the following:

  • Up to $300,000: $10 / $1000
  • $300,001 – $2mil: $15 / $1000
  • $2,000,001 – $5mil: $17.50 / $1000
  • $5.000,001+: $25 / $1000


CONTRA COSTA COUNTY

El Cerrito

  • El Cerrito will implement a new transfer tax at a rate of $12 / $1000 of the full sales price

RIchmond (Measure H)
The transfer tax rate is now changing to a tiered plan based on the following:

  • For sales up to $1mil the rate will remain the same at $7 / $1000 of the sales price
  • $1mil – $3mil tax rate will increase from $7 / $1000 (.7%) to $12.50 / $1000 (1.25%) of the sales price
  • $3mil – $10mil the rate will be 2.5% of the sales price
  • Above $10mil will be 3%

It is typical for the Seller and Buyer to split the City Transfer Tax 50% – 50%, with the Seller covering the County Transfer Tax.  For a complete list of transfer taxes click here: https://www.ortconline.com/Web2/downloads/english/california/guide-to-closing-costs.pdf

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