Understanding San Francisco Real Property Transfer Tax

Understanding San Francisco real property transfer tax is essential for both home buyers and sellers in neighborhoods like Mission Dolores, Bernal Heights, Noe Valley, Russian Hill, and Pacific Heights. This tax is calculated based on the property's sale price, with rates increasing in tiers as the property's value rises.

San Francisco Transfer Tax Rates

How much transfer tax can you expect to pay when you sell your home in San Francisco?

Here's how it breaks down by sale price:

• Up to $250,000: $2.50 per $500 or portion thereof
• $250,001 to $1,000,000: $3.40 per $500 or portion thereof
• $1,000,001 to $5,000,000: $3.75 per $500 or portion thereof
• $5,000,001 to $10,000,000: $11.25 per $500 or portion thereof
• $10,000,001 to $25,000,000: $27.50 per $500 or portion thereof
• Over $25,000,000: $30.00 per $500 or portion thereof

Simplified Calculation Methods for SF Real Estate Transfer Tax

For ease of calculation, these transfer tax rates can be approximated as percentages of the sale price:

• Up to $250,000: 0.5%
• $250,001 to $1,000,000: 0.68%
• $1,000,001 to $5,000,000: 0.75%
• $5,000,001 to $10,000,000: 2.25%
• $10,000,001 to $25,000,000: 5.5%
• Over $25,000,000: 6%

Example Calculations

1. Mission Dolores Condo Sold at $1,500,000:

• Tax Rate: 0.75%
• Calculation: $1,500,000 × 0.0075 = $11,250
• Total Transfer Tax: $11,250

2. Bernal Heights Single-Family Home Sold at $3,000,000:

• Tax Rate: 0.75%
• Calculation: $3,000,000 × 0.0075 = $22,500
• Total Transfer Tax: $22,500

3. Noe Valley Single-Family Home Sold at $5,000,000:

• Tax Rate: 0.75%
• Calculation: $5,000,000 × 0.0075 = $37,500
• Total Transfer Tax: $37,500

4. Sea Cliff Single-Family Home Sold at $10,000,000:

• Tax Rate: 2.25%
• Calculation: $10,000,000 × 0.0225 = $225,000
• Total Transfer Tax: $225,000

5. Presidio Heights Single-Family Home Sold at $25,000,000:

• Tax Rate: 5.5%
• Calculation: $25,000,000 × 0.055 = $1,375,000
• Total Transfer Tax: $1,375,000

It's important to note that San Francisco's transfer tax also applies to leaseholds with terms of 35 years or more and certain transfers involving legal entities owning real property in the city. 

Exemptions to San Francisco Transfer Tax

Some real estate transactions in San Francisco may be exempt from the transfer tax, including:

• Transfers between spouses or domestic partners
• Gifts
• Inheritances
• Transfers to secure a debt or fulfill obligations

To claim an exemption, appropriate documentation must be provided at the time of recording.

What’s a Transfer Tax Affidavit in San Francisco?

When recording a document that transfers property, a Transfer Tax Affidavit must accompany the submission, even if no tax is due. This form explains the nature of the transaction and determines if the transfer is taxable. The affidavit is available on the San Francisco Assessor-Recorder's website. 

Recent Developments

In recent years, San Francisco voters have approved increases in transfer tax rates for high-value properties. For instance, in 2020, Proposition I doubled the tax rate for sales of at least $10 million, with sellers of homes at $25 million or more now paying 6%. These measures aim to address housing crises and fund public services. 

Buy and Sell With the Best SF Realtors

Understanding San Francisco's real property transfer tax is crucial for anyone involved in real estate transactions within the city. Whether you’re selling a home in San Francisco and paying the transfer tax, or buying a home in San Francisco (and paying it indirectly, in a sense), you want to make sure you have a clear view of the costs involved. Being aware of the applicable rates, potential exemptions, and required documentation can help ensure a smooth transaction process.

For more detailed information, you can visit the San Francisco Assessor-Recorder's official website.