The San Jose City transfer tax has two parts: a base documentary transfer tax of $3.30 per $1,000 of value that applies to every property sale, and an additional Measure E tax of 0.75% to 1.5% on sales above $2.3 million. Sellers typically pay both at closing, though the purchase agreement can shift that responsibility to the buyer.
The Base Documentary Transfer Tax
Every property sale in San Jose is charged $1.65 per $500 of value, which works out to $3.30 per $1,000.1County of Santa Clara. Recording Real Estate That rate combines the county and city portions into a single charge collected by the Santa Clara County Clerk-Recorder when the deed is recorded.
The base tax applies to property value after subtracting any liens or encumbrances that remain on the property at the time of sale. Sell a home for $1.5 million where the buyer assumes a $200,000 existing lien, and the taxable amount drops to $1.3 million. On a $1 million sale with no remaining liens, the base tax comes to $3,300.
Measure E Tax on Sales Over $2.3 Million
San Jose voters approved Measure E in March 2020, adding Chapter 4.59 to the Municipal Code and imposing a separate transfer tax on higher-value properties.2Santa Clara County Clerk-Recorder. Measure E The threshold rose to $2.3 million on July 1, 2025, and adjusts for inflation every five years.3City of San José. Measure E – Real Property Transfer Tax
The Measure E rates apply to the full sale price, not just the amount above the threshold:2Santa Clara County Clerk-Recorder. Measure E
- $2,300,000.01 to $5,000,000: 0.75% of the full sale price ($7.50 per $1,000)
- $5,000,000.01 to $10,000,000: 1.0% of the full sale price ($10.00 per $1,000)
- Over $10,000,000: 1.5% of the full sale price ($15.00 per $1,000)
Unlike the base tax, Measure E uses the full consideration regardless of existing liens. A property that sells for exactly $2.3 million or less owes no Measure E tax at all. At $2,300,001, the entire sale price is taxed at the tier rate. That cliff matters: a few dollars over the line can add tens of thousands to the bill.
What a Sale Actually Owes
The two taxes stack. A few scenarios show the math.
A home that sells for $1.5 million with no remaining liens owes only the base tax: $1,500,000 ÷ 1,000 × $3.30 = $4,950. No Measure E applies.
A commercial property selling for $4 million owes a base tax of $13,200 plus a Measure E charge of $30,000 ($4,000,000 × 0.75%), for a combined transfer tax of $43,200.2Santa Clara County Clerk-Recorder. Measure E
A $12 million property hits the top tier. The base tax is $39,600 and the Measure E portion is $180,000 ($12,000,000 × 1.5%), for a total of $219,600. At this level the Measure E component overshadows the base tax, so sellers of high-value properties should budget accordingly.
Who Pays
Local custom in Santa Clara County places the transfer tax on the seller, and most residential transactions follow that convention. Buyers and sellers can negotiate a different split, and whatever the purchase agreement says controls.1County of Santa Clara. Recording Real Estate In commercial deals and competitive residential markets, it is not unusual for a buyer to absorb some or all of the tax as part of the broader negotiation.
If the contract is silent, expect the escrow company to default to local custom and charge the seller. For properties subject to Measure E, that single line item can move tens of thousands of dollars between the parties, so it should be spelled out in the purchase agreement from the start.
Exemptions
Certain transfers are exempt from the documentary transfer tax, the Measure E tax, or both. Common exemptions under the San Jose Municipal Code and California Revenue and Taxation Code include:
- Transfers between spouses or domestic partners, including conveyances during marriage, as part of a divorce settlement, or between registered domestic partners
- Transfers into a revocable living trust where ownership interests stay the same
- Property conveyed under a court decree or judgment
- Foreclosure sales
- Gifts where no money or anything of value changes hands
- Interfamily transfers of a primary residence made solely to satisfy a lender refinancing requirement
Claiming an exemption requires the person preparing the deed to list the legal basis on the recorded document, and the tax declaration must be signed by the party computing the tax or claiming the exemption.1County of Santa Clara. Recording Real Estate For Measure E exemption claims under California Revenue and Taxation Code § 11925(d), supporting documents must accompany the deed for the Clerk-Recorder’s review.
How the Tax Gets Paid
Both taxes are collected by the Santa Clara County Clerk-Recorder when the deed is presented for recording.1County of Santa Clara. Recording Real Estate In practice the escrow company handles it, withholding the tax from the sale proceeds and submitting payment along with the deed. You do not need to visit the Clerk-Recorder yourself in a typical transaction.
The deed must indicate how the tax was computed, specifically whether it was based on the full consideration or on the consideration minus existing liens. The applicable box must be marked and the declaration signed by the party computing the tax.1County of Santa Clara. Recording Real Estate The Clerk-Recorder’s office is prohibited by law from advising on which forms to use or how to fill them out, so you need an escrow officer, title company, or attorney to prepare the documents correctly. A completed Preliminary Change of Ownership Report must accompany the deed, or the county adds a $20 penalty to the recording fee.4County of Santa Clara. Recording Document Fees
Getting a Refund if You Overpaid
If you overpay or discover after recording that you qualified for an exemption, the City of San José’s Finance Agency handles refunds through its Real Property Conveyance Tax Refund Form.5City of San José. Other Tax Forms, Permits and Resources Refund claims for the city conveyance tax go to the city, not the County Clerk-Recorder.
Under San Jose Municipal Code Chapter 4.82, all tax refund claims must be filed within one year of the date of payment.6San Jose, CA. San Jose Code of Ordinances – Chapter 4.82 Tax Refund Claims Procedures The claim must be in writing, verified by the claimant, and state the overpaid amount with supporting documentation. Missing that one-year deadline bars the claim entirely, and the administrative process must be exhausted before any lawsuit can be filed.