![]() ![]() Some states may also charge different rates for different levels of property values. Your total in transfer taxes would be $2,050. So if you sell a property in Santa Monica worth $500,000, you would owe Los Angeles County $550 and the City of Santa Monica an additional $1,500. For example, Santa Monica charges $3 per $1,000. Different cities also charge their own transfer tax on top of that. In California, the state charges a transfer tax of 0.11% of the value of the property (payable to the county).Depending on where you live, you might have to pay city, county, and state transfer taxes. You might also pay transfer taxes at multiple government levels. For a $300,000 home, that transfer tax would come out to $600. If the transfer tax is $1.00 per $500, the rate would be 0.2%.The percentage will vary depending on what the city, county, or state charges.įor the most part, the rate is calculated per $100, $500, or $1,000. The transfer tax is calculated as a percentage of the sale price or the appraised value of the property. In a hot seller’s market, for example, the buyer will often offer to pay them as a way of making their offer more appealing. The seller can ask the buyer to pay them or vice versa. And in a few areas, both the buyer and the seller are responsible for their own set of transfer taxes.Īnd like most costs involved in a real estate transaction, transfer taxes can be part of the negotiations. In some areas, it may be customary for the seller to pay them, whereas in a neighboring state it might be seen as the buyer’s responsibility. However, this isn’t a steadfast rule and can often depend on the local market. But in most cases, the seller will pay the transfer tax. There isn’t a law, or even a guideline, on a national level regarding transfer taxes. Who pays the transfer tax, the buyer or the seller? Regardless of whether you’re buying or selling, the IRS won’t allow you to deduct any of the taxes you pay in a real estate transaction, including transfer taxes. “Optional” transfer tax (which is optional for the county to charge, not for you to pay).Whenever a real estate property changes ownership, the city, county, or state can charge a transfer tax. But who pays the transfer tax, and how much is it? We’ll tell you everything you need to know, including how much you can expect to pay. But you’ll also face other fees you might not have heard of before. One of these is a transfer tax.Ī transfer tax is paid any time a property changes hands, whether it’s because of a death in the family, divorce, or, most commonly, a sale. Moving companies, home inspections, and agent commissions are the common ones. When you buy or sell a home, you’ll be facing a number of expenses. ![]()
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