Understanding Santa Clara County’s Transfer Tax: A Quick Guide

If you’re selling a home in Santa Clara County, you may need to account for transfer taxes—fees imposed when property ownership changes hands. These taxes are typically calculated based on the home’s sale price and can vary by location.

This guide explains how transfer taxes work in Santa Clara County, who pays them, and potential exemptions that may apply. It also provides insights on estimating your transfer tax obligations so you can confidently plan your home sale.

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What are transfer taxes?

Real estate transfer taxes are charges imposed by state or local governments when property ownership is transferred from one party to another. The Federal Trade Commission defines them as taxes that must be paid when the title of a property legally changes hands. These taxes apply to most real estate transactions and are typically calculated as a percentage of the sale price or a set rate per dollar amount.

The amount owed in transfer taxes depends on the property’s location, as different states, counties, and cities set their own tax rates. In many cases, these taxes are paid at closing and are part of the overall transaction costs. Like other taxes, they help generate revenue for public services and infrastructure, making them a key part of local government funding.

Who pays for transfer taxes?

In Santa Clara County, the responsibility for paying transfer taxes typically falls on the seller.

from HomeLight Blog https://www.homelight.com/blog/santa-clara-county-transfer-tax/