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