Understanding San Leandro’s City Transfer Tax: A Quick Guide
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
If you’re selling your San Leandro home, you might have questions about transfer taxes. How do they work? How much are they? Who pays for them? Don’t worry. Transfer taxes aren’t complicated, and HomeLight is here to help.
Transfer taxes are fees levied by local or state authorities when real property (like a home) changes ownership. Transfer tax rates can differ significantly based on location and can have a big impact on the overall cost of your transaction and your bottom line.
This guide will explain how transfer taxes work in San Leandro, including their cost, who is liable for them, and any possible exemptions. Additionally, we will explain how transfer taxes can affect your capital gains burden and why working with a real estate agent is a great idea.
Connect with a Top Agent to Help Maximize Value
Even rockstar agents can’t make your tax liability disappear, but HomeLight data shows that the top 5% of agents across the U.S. help clients sell their home for as much as 10% more than the average real estate agent, helping offset the tax bill.
What are transfer taxes?
Real estate transfer taxes are charged by state or local governments when property ownership is transferred from one individual to another. According to the Federal Trade Commission, these taxes are due when the title to a property, essentially the document that confirms your legal ownership, is officially passed to a new owner.
The amount owed in transfer taxes can vary widely based on the property’s location, as different states, counties, and cities establish their own rates and regulations. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects.
Who pays for transfer taxes?
The responsibility of who pays for transfer taxes varies depending on the city, state, or county. In Alameda County, where San Leandro is located, the seller pays for any real estate transfer taxes accrued due to a property changing hands.
What are the types of transfer taxes?
Transfer taxes vary according to local regulations but can typically be categorized into three types: state, city, and county. Here’s a brief overview of how they work in San Leandro.
State transfer taxes
For property transfers in California, a documentary transfer tax of $0.55 per $500 of the home’s sales price value is applied to any non-exempt transaction. However, additional taxes may apply depending on your specific location in California.
County transfer taxes
In Alameda County, where San Leandro is located, the county transfer tax rate is $1.10 per $1,000 of the property’s sales price.
City transfer taxes
San Leandro’s city transfer tax rate is $11.00 per $1,000 of the property’s sales price.
Other transfer fees
Beyond transfer taxes, there may be additional fees to consider, such as those from a homeowner’s association or local neighborhood organization. Since these can vary widely based on location, consulting a professional is advisable.
If you’re selling your home without a realtor, seeking professional advice can clarify some of the nuances of the process and provide a better understanding of what to expect regarding the pros and cons of selling a house without a realtor.
Are transfer taxes deductible?
Transfer taxes are, unfortunately, not eligible for tax deduction. However, you might be able to lower the amount you pay in capital gains taxes.
Capital gains, defined as the profit obtained from the sale of your home or the financial gain from selling your property, are subject to federal taxation just like profits from the sale of other assets.
According to the IRS, sellers can treat paid transfer taxes as selling costs, subtracting them from their home’s closing sale price. This allows them to lessen the capital gains taxes owed on any profit earned.
Transfer tax exemptions for San Leandro
You may be eligible for transfer tax exemptions in San Leandro, depending on the specifics of your sale. Here are some examples of when an exemption might be possible:
- Lien value: No tax if outstanding liens equal or exceed the property value.
- Collateral security: Applies to debt-secured instruments; does not cover deeds.
- Government agency: Covers transfers to government entities, including FHLMC and FNMA foreclosures.
- Bankruptcy/court order: This includes bankruptcy transfers and court-ordered conveyances that do not involve a sale.
- SEC order: Applies to transfers ordered by the Securities and Exchange Commission.
- Same party interest: No tax if ownership remains proportional after transfer.
- Trustee deeds: Covers trustee sales or deeds in lieu of foreclosure (only on lien value, not equity).
- Marriage dissolution: Applies to transfers between spouses due to divorce.
- Non-federal agency: Tax-free if a non-federal agency transfers the property and the buyer immediately reconveys it to an exempt agency.
- Non-profit transfer: This exemption applies when a government agency transfers property to a non-profit (it is not valid for private-to-non-profit transfers).
- Trust/beneficiary: Covers transfers to a grantor’s trust, gifts without payment, and property passed after death.
Estimating transfer taxes for your home sale
To better understand what you can earn from selling your San Leandro home, consider using HomeLight’s Net Proceeds Calculator. This tool accounts for essential costs such as closing expenses, transfer taxes, agent fees, and any improvements made to the property, providing a clear estimate of your potential earnings from the sale.
Collaborating with a top real estate agent can also offer valuable insights tailored to your needs. HomeLight can connect you with a top San Leandro real estate agent today who can give you the peace of mind needed to sell your home quickly and confidently.
Editor’s note: This post is for educational purposes only and does not constitute legal or financial advice. Links and mentions of San Leandro City area tax services or attorneys should not be considered endorsements.
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