Understanding San Jose’s Transfer Tax: A Quick Guide
Learn about the San Jose transfer tax: Understand how it affects your property sale, learn about exemptions, and quickly navigate its complexities.
If you’re preparing to sell a home in the city of San Jose, it’s important to understand how transfer taxes could affect your bottom line. Real estate transfer taxes are fees charged by state, county, or local governments when property ownership changes hands. These taxes are typically calculated based on the home’s final sale price and are paid at closing.
In San Jose, sellers may be responsible for multiple layers of transfer taxes, including city, county, and state charges.
This guide explains how real estate transfer taxes work in San Jose, who usually pays them, and what exemptions may apply. It also covers how to estimate your total costs and where to get expert help if you need it.
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What are transfer taxes?
Real estate transfer taxes are fees imposed by a government entity when the ownership of a property changes hands. According to the Federal Trade Commission, these taxes are typically required at the time a property’s title is officially transferred from the seller to the buyer. The amount owed usually depends on the property’s sale price and the tax rates set by the applicable jurisdiction.
These taxes serve a fiscal purpose for governments at various levels. Depending on where the property is located, a seller or buyer may need to pay state, county, or city transfer taxes, or a combination of the three. These fees help generate revenue for local services and infrastructure, much like property taxes or recording fees.
Who pays for transfer taxes?
Transfer taxes in the city of San Jose, as in all of Santa Clara County, are split between the buyer and seller.