The Sacramento transfer tax is $3.30 per $1,000 of the sale price for homes inside Sacramento city limits and $1.10 per $1,000 for properties in unincorporated Sacramento County. On a $500,000 home within the city, that comes to $1,650 at closing; the same sale in an unincorporated area would owe $550. The tax is paid when the deed is recorded and can be negotiated between buyer and seller.
City Rate Versus County Rate
California’s Revenue and Taxation Code authorizes every county to charge a documentary transfer tax of $0.55 per $500 of value, or $1.10 per $1,000.1California Legislative Information. California Revenue and Taxation Code 11911 Sacramento County collects this on every real property sale countywide.
Properties inside Sacramento city limits owe an additional city tax of $2.75 per $1,000.2City of Sacramento. Real Property Transfer Tax When a city imposes its own transfer tax, state law gives a credit against the county tax, so the county’s share drops to $0.55 per $1,000 inside the city.1California Legislative Information. California Revenue and Taxation Code 11911 The combined rate works out to $3.30 per $1,000.
At common Sacramento price points inside the city:
- $400,000 sale: $220 county + $1,100 city = $1,320
- $500,000 sale: $275 county + $1,375 city = $1,650
- $700,000 sale: $385 county + $1,925 city = $2,310
A $500,000 property outside any city, in unincorporated Sacramento County, owes only the county’s $1.10 per $1,000, or $550.
Who Pays
Buyer and seller can agree in the purchase contract on who pays the transfer tax. The county ordinance says the tax is owed by the person who signs or benefits from the recorded document, without naming buyer or seller specifically.3Sacramento County, CA. Sacramento County Code 3.12 – Real Property Transfer Tax Ordinance of the County of Sacramento The Sacramento County Clerk/Recorder confirms that either party can pay upon mutual agreement.4Sacramento County Clerk/Recorder. Documentary Transfer Tax
Local custom in Sacramento leans toward the seller paying, and standard purchase contracts reflect that. In a tight market, buyers sometimes offer to cover the tax to strengthen their bid. Whatever you agree to, get it in writing in the signed purchase agreement so it shows up correctly on the settlement statement.
How the Taxable Amount Is Calculated
The tax applies to the consideration paid, which can be less than the headline sale price. Consideration means the total value exchanged. If the buyer takes over any existing lien or mortgage on the property, the value of that debt is subtracted from the gross price before the tax is calculated.1California Legislative Information. California Revenue and Taxation Code 11911
Say you buy a home for $600,000 inside the city and assume the seller’s existing $200,000 mortgage. The taxable amount is $400,000, and the tax is $3.30 × 400 = $1,320, not the $1,980 you would owe on the full $600,000. This deduction is routinely overlooked, and skipping it means paying more than you owe.
The transfer tax declaration has to appear on the face of the recorded deed, showing the amount of tax and whether the taxable amount excludes any remaining liens.5California Legislative Information. California Revenue and Taxation Code 11933 Sacramento County also expects the Assessor’s Parcel Number, a legal description, a statement of whether the property sits inside a city or in unincorporated territory, and a “when recorded mail to” address.6Sacramento County Clerk/Recorder. Transferring Ownership of Real Property Check all of these against your settlement statement before recording so the deed isn’t rejected.
Transfers That Are Exempt
Several kinds of transfers don’t trigger the tax. Claiming an exemption requires citing the specific code section on the face of the recorded document.
Gifts and Inheritances
Property given during the owner’s lifetime or passed by inheritance is exempt, as long as no money or other consideration changes hands.7California Legislative Information. California Revenue and Taxation Code 11930 Transfers into a revocable living trust for estate planning also qualify, because the trust benefits a person and no sale has occurred.
Divorce and Legal Separation
Deeds dividing community property between spouses in a divorce, legal separation, or annulment are exempt under Revenue and Taxation Code Section 11927.8California Legislative Information. California Revenue and Taxation Code 11927 The exemption covers transfers required by a court judgment or by a written agreement made in anticipation of one. One of the spouses must sign a statement on the deed declaring that the transfer qualifies. Routine transfers between spouses outside a dissolution are not covered.
Business Entity Reorganizations
Transfers between an individual and a legal entity, or between entities, are exempt when they merely change how title is held and the proportional ownership interests stay identical before and after.9California Legislative Information. California Revenue and Taxation Code 11925 Moving a rental property from your personal name into your single-member LLC is a common example. Partnership transfers are protected as long as the partnership continues under federal tax rules. If a partnership terminates, the law treats it as having conveyed its real property at fair market value, and the tax applies.
Foreclosure and Government Transfers
A deed to a lender through foreclosure or in lieu of foreclosure is exempt, but only up to the unpaid debt plus accrued interest and foreclosure costs. Any consideration above that figure is taxed.10California Legislative Information. California Revenue and Taxation Code RTC 11926 Transfers in which a governmental agency acquires title are also exempt.
Transfers Under $100
If the total consideration or value of the interest conveyed is $100 or less, no tax is owed.1California Legislative Information. California Revenue and Taxation Code 11911 This rarely matters in a standard sale but can apply to nominal or partial-interest conveyances.
Paying at Recording
The tax is paid to the Sacramento County Clerk/Recorder when the deed is recorded. The recorder won’t accept a taxable document unless the full tax is paid at that moment.5California Legislative Information. California Revenue and Taxation Code 11933
On top of the tax, there’s a base recording fee of $20 for the first page of the deed and $3 for each additional page.11Sacramento County Clerk/Recorder. Fee Schedule The $75 Building Homes and Jobs Act surcharge that applies to some recorded documents is generally not charged on documents already subject to the documentary transfer tax.
The county accepts cash, pre-printed personal checks, cashier’s checks, certified checks, money orders, debit cards, and major credit cards; a $2.50 service fee applies to card payments.12Sacramento County Clerk/Recorder. Acceptable Forms of Payment A Preliminary Change of Ownership Report (PCOR) must be filed at the same time the deed is recorded, or a $20 penalty is added.6Sacramento County Clerk/Recorder. Transferring Ownership of Real Property The PCOR goes to the assessor and is where you flag any claim for a reassessment exclusion.
Understating the Price Is a Misdemeanor
Reporting a sale price below the actual consideration, or misrepresenting any fact on the transfer tax declaration to lower the tax, is a misdemeanor. The county ordinance lets the recorder demand records showing the true consideration when there’s reason to doubt the amount reported, and material misrepresentations can be prosecuted. Title companies and the assessor cross-reference recorded values against market data as a matter of course.
Transfer Tax Is Not the Same as Property Tax Reassessment
Recording a deed does more than trigger the transfer tax. Most ownership changes also prompt the county assessor to reassess the property under Proposition 13, resetting the assessed value to current market value. That reassessment can raise your annual property tax bill significantly if the seller held the home for many years at a lower base. Proposition 19 provides limited base-value protection for homeowners aged 55 or older, severely disabled homeowners, and certain parent-to-child transfers of a principal residence.13California State Board of Equalization. Proposition 19 Those are separate rules from the transfer tax and are claimed through the PCOR and assessor filings, not through the deed’s tax declaration.