Understanding San Mateo County’s 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 a home in San Mateo County, it’s important to factor in the cost of real estate transfer taxes — fees imposed when property changes hands. These taxes are typically calculated based on the final sale price and can affect your bottom line at closing.
In this guide, we’ll break down how San Mateo County’s transfer tax works, who’s responsible for paying it, and what rates apply at the state, county, and city levels. You’ll also learn about potential exemptions and whether any part of the tax is deductible.
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 charges that apply when a property’s ownership officially changes hands. According to the Federal Trade Commission, these taxes are imposed at the state or local level when the title—or legal ownership—of a home is transferred from the seller to the buyer. The tax is typically based on the property’s sale price and is usually paid at closing.
The exact amount you’ll owe depends on where the property is located, as each state, county, or city sets its own rates and rules. Like other public taxes, real estate transfer taxes help generate revenue for government services, such as infrastructure and community development.
Who pays for transfer taxes?
Sellers are responsible for paying transfer taxes in San Mateo County. In the city of San Mateo, these are split between the buyer and the seller. California transfer taxes typically fall to the seller, but this can vary based on the city or municipality.
What are the types of transfer taxes?
Transfer taxes will typically vary based on local guidelines but can generally be broken down into three categories — state, city, and county, depending on the state. Here’s a quick look at how it works in San Mateo County:
State transfer taxes
In California, statewide, the state’s transfer tax is levied at a rate of $0.55 per every $500 of home value.
County transfer taxes
San Mateo County transfer taxes are levied at a rate of $1.10 per every thousand dollars of the property’s value.
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 with some of the finer points of the process and give you a better idea of what you can expect.
Are transfer taxes deductible?
Transfer taxes aren’t deductible on your income tax return, which means you can’t subtract them as an itemized expense when filing.
However, they may still offer some tax relief when it comes to capital gains — the profit made from selling your home. According to the IRS, sellers can treat transfer taxes as selling costs, which allows these fees to be included in the total expenses of the sale. This can reduce the amount of profit that’s subject to capital gains tax, potentially lowering your overall tax bill.
Transfer tax exemptions
San Mateo County sellers may be exempt from transfer taxes. Here is a list of possible exemptions you might qualify for:
- Gift transfers: Includes inter vivos gifts (between living persons) or transfers due to death.
- Divorce-related transfers: Property allocated through a divorce judgment or agreement.
- Trust transfers: Transfers to or from a revocable trust where the grantor is the beneficiary and the transfer is not a sale.
- Court-ordered transfers: Property conveyed by court order without payment.
- Name change confirmations: When the grantor and grantee are the same and the transfer reflects a name change (e.g., after marriage or corporate rename).
- Title-holding changes: Changes in how the title is held with no change in ownership share or parties involved.
- Short-term leases: Leases (and lease assignments) with terms under 35 years, including renewal options.
- Deeds to public entities: Transfers to government bodies or political subdivisions.
- In lieu of foreclosure: When property is transferred instead of foreclosure, and the value is less than the debt owed.
Estimating transfer taxes for your home sale
To get a clearer picture of how San Mateo County transfer tax will affect your home sale, start with HomeLight’s Net Proceeds Calculator. This free tool helps estimate what you might walk away with after closing by factoring in key costs like transfer taxes, real estate agent fees, and any prep work or upgrades.
For the most accurate estimate — and to know what costs might be negotiable — it’s wise to connect with a top real estate agent. An experienced agent can help you break down your closing costs, explain how local transfer tax rates apply to your sale, and potentially help you reduce or shift those costs through negotiation.
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