President’s Newsletter
What’s Happening with California Transfer Taxes — and Why It Matters to You
If you’ve bought or sold property in California recently, you’ve probably noticed transfer taxes as a line item on your closing statement. There’s been a lot of activity around these taxes lately, and we want to make sure you’re in the loop.
A Quick Refresher on Transfer Taxes
California currently charges a statewide documentary transfer tax of $1.10 per $1,000 of property value — roughly 0.11% of the sales price. Many cities and counties layer their own local transfer taxes on top of that, which can add up quickly at the closing table.
How Much Could Proposed Increases Actually Cost Sellers?
Earlier this year, San Diego County floated the idea of raising its documentary transfer tax from $0.55 per $500 to as much as $30.55 per $500. That proposal was ultimately withdrawn, but the numbers were eye-opening. Here’s what sellers would have faced compared to today’s rates:
| Sales Price | Current Tax (0.11%) | Proposed Tax |
|---|---|---|
| $500,000 | $550 | $30,550 |
| $800,000 | $880 | $48,880 |
| $1,000,000 | $1,100 | $61,100 |
| $2,500,000 | $2,750 | $152,750 |
San Diego wasn’t alone. Los Angeles already has Measure ULA, which adds significant transfer taxes to higher-value property sales, and several other charter cities have created their own local transfer tax systems.
A Statewide Response: The Local Taxpayer Protection Act
In response to these growing local tax measures, a statewide ballot initiative called the Local Taxpayer Protection Act has qualified for the November 3, 2026 election. Here’s what it would do if passed:
- Cap new transfer taxes at the traditional 0.11% statewide rate going forward
- Phase out existing local transfer taxes above that rate by December 31, 2028
- Tighten voter approval requirements for certain future local tax measures
If the measure passes, it would put a meaningful ceiling on what local governments can charge in transfer taxes. If it doesn’t pass, local governments keep their current authority to set their own rates.
We’re Watching This Closely
At Oakwood Escrow, staying on top of legislative and ballot developments is part of how we serve you. We’ll continue to share updates on anything that could affect your real estate transactions across California. As always, don’t hesitate to reach out if you have questions.
Jason Scally
CEO
Oakwood Holdings, Inc.
619-917-9083