What are the types of transfer taxes?
Transfer taxes will typically vary based on local guidelines but can generally be divided into three categories: state, city, and county, depending on the state. Here’s a quick look at how it works in Santa Monica.
State transfer taxes
California has a one-size-fits-all approach to transfer taxes for home sales. The Golden State levies a transfer tax of $1.10 per $1,000 (or $0.55 per $500) of the home’s value. So, for a $400,000 home sale in Santa Monica, the seller would pay a state transfer tax of $440. This tax rate is consistent across all California home transactions, unless there are exemptions.
County transfer taxes
In Los Angeles County, the base transfer tax rate is $0.55 per $500 of the home’s value. This applies to home sales over $100 in value, which will apply to most transactions.
However, depending on the city in Los Angeles County, there might be an additional transfer tax, as is the case with Santa Monica.
City transfer taxes
After March 1, 2023, following a voter-approved ordinance, another transfer tax tier was added to Santa Monica’s tier of transfer taxes.
The first tier, at $3.00 per $1,000 value, applies to transactions under $5 million and remains unchanged from the previous system. Additionally, the second tier, levied at $6.00 per $1,000, for transactions between $5 million and under $8 million, is also unchanged.
The new third is levied at a rate of $56 per $1,000 of the property’s value, and applies to transactions of $8 million or more.
Example of a property transfer valued at $8 million (on or after March 1, 2023):
| County | $8,800 |
| City of Santa Monica | $448,000 |
| Total | $456,800 |
Other transfer fees
In addition to transfer taxes, there are possible fees to consider, such as from a homeowner’s association or another local neighborhood organization. Again, as these can vary heavily based on location, it’s important to consult a professional.
If you’re selling your home for sale by owner, consulting a professional might help you understand some of the finer points of the process and give you a better idea of what to expect.
