Understanding San Francisco’s Transfer Tax: A Quick Guide
Selling your home in San Francisco? Understanding transfer taxes is important. Real estate transfer taxes are fees levied by the government when a property changes ownership. In this short guide, we’ll explain how transfer taxes work in San Francisco, detailing what sellers can expect to pay when selling their property.
What are transfer taxes?
The Federal Trade Commission describes transfer taxes as state or local taxes imposed when the ownership of a property changes hands. This means that when you transfer the title of your home, essentially your legal ownership, to another person, the government collects a fee for this transaction.
The amount you owe in transfer taxes depends on your property’s location, as different state, county, and city regulations apply. These taxes are a way for governments to generate revenue, similar to other types of taxes, and are important to consider when planning the sale of your property.
Who pays for transfer taxes?
Ultimately, the responsibility of a transfer tax will depend on where you are located. In some cities, it is up to the buyer and the seller to pay. However, in San Francisco, it falls to the seller. Therefore, if you are selling your home in San Francisco, it’s important to keep this in mind as you consider your bottom line.
