California property glossary
Documentary Transfer Tax
Also called transfer tax, county transfer tax, DTT
Quick answer
Documentary transfer tax is charged by a California county when a deed is recorded, commonly at $0.55 per $500 of the value conveyed. Some charter cities levy an additional transfer tax on top, occasionally at far higher and tiered rates.
Key facts
- Common county rate
- $0.55 per $500 of consideration ($1.10 per $1,000)
- Measured on
- Value of the interest conveyed, less the value of any lien or encumbrance remaining at sale
- City tax
- Charter cities may impose their own, sometimes tiered by price and substantially higher than the county rate
- Common exemptions
- Certain spousal transfers, gifts, transfers to or from a revocable trust, and some foreclosure or deed-in-lieu transfers
- When paid
- At recording, through escrow, appearing on the closing statement
- Authority
- The county recorder for the jurisdiction the property sits in
What it means
The tax is authorised by state law and imposed at the county level on the value of the interest conveyed, less any lien or encumbrance remaining on the property at the time of sale. It is collected through escrow and paid at recording, which is why it appears on the closing statement rather than as a separate bill.
The county rate is broadly uniform across California, but city transfer taxes are not. Charter cities may impose their own on top of the county's, and several do so at rates far above the county figure — with some using tiered rates that rise with sale price. Two properties a short distance apart can therefore carry very different transfer tax totals, which is why the city matters as much as the county when estimating closing costs.
Several transfers are exempt or partially exempt, including certain transfers between spouses, gifts, transfers into or out of a revocable trust, and some transfers arising from foreclosure or a deed in lieu. Claiming an exemption requires stating the basis for it on the deed at recording, and the county recorder applies the rule as written.
Who pays is negotiable rather than statutory. In much of Northern California the seller customarily pays the county transfer tax, but custom varies and the purchase agreement controls. Because rates and exemptions are set locally, the county recorder or assessor for the property's jurisdiction is the authority for any specific transaction.
Why this matters when you are selling
This is the closing-cost line most often estimated wrong, because people assume a single statewide figure. The county component is fairly predictable; the city component is not, and in the cities that impose one it can dwarf the county tax. Estimating net proceeds without checking whether the property sits inside such a city produces a number that is simply incorrect.
The deduction for remaining liens is also widely missed. The tax is measured on the value conveyed less encumbrances that stay with the property, which is a different figure from the headline sale price in some transactions. Where that applies, the escrow holder computes it — but a seller reconciling their own estimate against the closing statement should know the adjustment exists.
Common mistakes
Assuming the same transfer tax applies everywhere in California.
Instead: Check the city as well as the county. City transfer taxes vary enormously and some are tiered by sale price.
Expecting an exemption to apply automatically.
Instead: Exemptions are claimed on the deed at recording, with the basis stated. If it is not claimed, it is not applied.
Treating transfer tax as the main cost of selling.
Instead: In a listed sale, commission is usually far larger. Compare offers on net proceeds rather than on any single line.
Questions people ask
Who pays documentary transfer tax in California?
It is negotiable and follows local custom rather than statute. In much of Northern California the seller customarily pays the county transfer tax, but that is convention, not law, and the purchase agreement is what actually decides. Where a city transfer tax also applies, which side pays it is likewise a term of the deal.
Is transfer tax owed on a gift or a transfer into a trust?
Many such transfers are exempt, including certain transfers between spouses and transfers into or out of a revocable trust where beneficial ownership does not change. The exemption has to be claimed on the deed with the basis stated, and the county recorder applies the rule as written — so the deed language matters.
Bottom line
Budget the county rate as predictable and the city rate as the variable. The only reliable way to estimate this line is to identify the exact jurisdiction the property sits in, because that is where the number is set.
Written and maintained by Sierra Property Buyers, a direct property buyer working across Northern California. Last reviewed August 2026. This page is general information about how California property transactions work — it is not legal, tax, or financial advice, and the specifics of any situation should be confirmed with an attorney, a CPA, or the relevant agency.
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