If you’re selling your Placer County home, you might have questions about transfer taxes. How do they work? How much are they? Who pays for them? Don’t worry. Transfer taxes aren’t complicated, and HomeLight is here to help.
Transfer taxes are fees levied by local or state authorities when real property (like a home) changes ownership. Transfer tax rates can differ significantly based on location and can have a significant impact on the overall cost of your transaction and your bottom line.
This guide will explain how transfer taxes work in Placer County, including their cost, who is liable for them, and any possible exemptions. Additionally, we will explain how transfer taxes can affect your capital gains burden and why working with a real estate agent is a great idea.
What are transfer taxes?
Real estate transfer taxes are fees imposed by state or local governments when property ownership is transferred from one individual to another.
As defined by the Federal Trade Commission, these taxes are due when the title to a property, essentially the document that confirms your legal ownership, is officially passed to a new owner. This process can occur through sales, inheritance, or gifting of property.
The amount you owe in transfer taxes can vary widely based on the property’s location. Different states, counties, and cities can establish their own rates and regulations for these taxes. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects.
Who pays for transfer taxes?
Sellers are responsible for paying for transfer taxes in Placer County.
