San Francisco's Transfer Tax: What Condo Owners Need to Know Before They Close

A tax that belongs to the city, not the state

Among the 10,143 condos in this parcel record, the median recorded sale price over the past two years was $1,275,000 (647 sales). At that price, transfer tax is not a rounding error — it is one of the larger line items on a closing statement. Understanding how the tax is structured is the first step to not being surprised by it.

Most California counties collect a state-authorized documentary transfer tax at a flat rate. State law permits California's 58 counties to impose and collect a tax on the transfer of ownership in real estate — known as a documentary transfer tax — limited to 55 cents per $500 of the sale price, or about 0.11 percent. San Francisco does not use that system. All counties in California except for one impose a documentary transfer tax; that one exception is San Francisco, which instead imposes its own tax.

San Francisco operates as both a charter city and a county. Court decisions in the early 1990s determined that charter cities could impose their own transfer tax on the sale of real property, and charter cities can set their own rate — they are not limited to the statutory rate for documentary transfer taxes. The result is a local tax with multiple tiers that can reach far above the statewide baseline. The authority to collect transfer taxes is codified in Article 12C of the San Francisco Business and Tax Regulations Code.

The rate tiers

The transfer tax rate is variable, depending on the consideration paid — the purchase price — for deeded transfers. The City and County of San Francisco publishes the following schedule on its official transfer tax page:

Rates run from $3.40 per $500 for values above $250,000 but under $1,000,000; $3.75 per $500 from $1,000,000 to under $5,000,000; $11.25 per $500 from $5,000,000 to under $10,000,000; $27.50 per $500 from $10,000,000 to under $25,000,000; and $30.00 per $500 for $25,000,000 and above.

The jump from the $1M–$5M tier to the $5M–$10M tier is sharp: a condo that closes one dollar above $5,000,000 pays three times the rate of one that closes just below it. That cliff matters less to most condo owners in this ZIP code, but it is relevant to anyone selling a larger unit or a combined unit.

How the math works on a typical closing

The rate applies to the entire purchase price, not just the portion above each threshold — there is no graduated bracket system as with income taxes. A unit that sells for $1,320,000 (the trailing-12-month median in this market, 269 sales) sits in the $1M–$5M tier. At $3.75 per $500, the tax on that sale comes to $9,900. A unit closing just below $1,000,000 would pay $3.40 per $500 — a noticeably different number on the same approximate dollar amount.

Transfer tax is due when you record a document transferring the property, such as a deed. A Transfer Tax Affidavit explains the nature of your transaction and determines whether the transfer is taxable.

Who pays

California law does not specify which party in a sale must pay the transfer tax; it is a matter of negotiation. In San Francisco, the strong custom — reflected in the standard residential purchase agreement — is that the seller pays. That custom is not a legal requirement, and a buyer and seller can agree otherwise. Your purchase contract is where the allocation is set. An attorney or your title company can confirm how the contract reads in any specific deal.

Common exemptions worth knowing

Not every deed recording triggers a bill. If adding your child to the title is a gift, there is generally no transfer tax due in San Francisco. Generally there is no transfer tax due on transfers between a married couple or between domestic partners who are registered with the City. Transferring a unit into your own revocable trust, where the beneficial interest stays the same, is also generally exempt — but the paperwork must be done correctly. Exemptions will only be made if the recording party claims a valid exemption; written documentation proving the exemption must be submitted at the time of recording, otherwise transfer taxes are due.

For any non-standard transfer — an inheritance, a trust change, an LLC holding title — consult a tax adviser or attorney before you record anything. Getting it wrong means paying the tax first and fighting for a refund later.

A word on the legislative environment

The transfer tax structure has been an active target for reform. In February 2026, Mayor Lurie introduced legislation aimed at reducing rates on certain large transactions. Under that proposal, rates for multifamily housing and commercial real estate above $10 million would return to pre-2020 levels of 2.75% and 3%, while transfer tax rates for single residences and transfers below $10 million would not change. Separately, a November 2026 ballot measure — Proposition I — would, if approved by voters, represent a moderate annual decrease of approximately $1 million to the City's overall revenues starting in FY 2027-28. The Board of Supervisors may amend, reduce, suspend, or repeal the transfer tax without voter approval, but voters must approve any increase.

None of those proposals, as of September 2026, had changed the rate schedule above. Verify the current schedule with the Assessor-Recorder before any closing.

Where to check

• SF.gov – Transfer Tax (official rate schedule): The Assessor-Recorder's current tier table, affidavit forms, and exemption links.
• SF.gov – Learn About Transfer Tax: Plain-language explanations of the tax basis for common transfer types, including gifts, trusts and spousal transfers.
• SF.gov – Recording Fees: The full fee schedule for recording documents, including the transfer tax table and the SB2 Building Homes fee.
• California LAO – Local Taxes Ballot Analysis: Legislative Analyst's Office explanation of how San Francisco's charter-city tax differs from the standard statewide documentary transfer tax.

Tim McMullen · CA DRE #02016832
[email protected] · (415) 691-9272