Documentary transfer tax surprises more people than any other line on a California recording bill, because it is not a recording fee at all — it is a tax on the transfer, and it scales with the value of the property.
The county rate
Under the California Documentary Transfer Tax Act, counties levy $0.55 for each $500 of consideration or value conveyed, or fractional part of it — that is $1.10 per $1,000. The tax is calculated on the value of the property net of any lien or encumbrance remaining on it at the time of sale.
City transfer tax stacks on top
Charter cities may impose their own transfer tax in addition to the county's. In those jurisdictions the city tax is frequently the larger of the two, and both are collected when the deed is recorded. Los Angeles County deeds in particular need the city checked before an estimate goes out.
Common exemptions
- Transfers between spouses or registered domestic partners, including in dissolution.
- Gifts, where no consideration passes.
- Transfers into or out of a revocable trust where beneficial ownership does not change.
- Deeds correcting or confirming a previously recorded transfer.
- Transfers where the consideration, less liens remaining, is $100 or less.
The exemption has to be stated on the document
An exemption is not assumed. The deed must recite the transfer tax amount or state the exemption with the reason and the applicable Revenue and Taxation Code section. A deed that is silent on transfer tax is a rejection in most California counties.
Do not forget the PCOR
A Preliminary Change of Ownership Report accompanies transfers. Without one, counties charge an additional $20 at recording.
We are a recording service, not a tax advisor. If a transfer's taxability is genuinely unclear, confirm it with the county or with counsel before the deed is submitted.
Frequently asked questions
How is California documentary transfer tax calculated?
At $0.55 per $500 of consideration or value, or fraction of it, at the county level — $1.10 per $1,000 — computed net of liens remaining on the property.
Is a transfer to my own trust taxable?
Transfers into a revocable trust where beneficial ownership does not change are generally exempt, but the deed must state the exemption and cite the code section.
What happens if the deed does not mention transfer tax?
Most California recorders reject it. The document must show either the tax due or an explicit exemption with its reason.
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