If you’re selling your Orange County home, you might have questions about transfer taxes. How do they work? How much are they? Who pays for them? Don’t worry. These 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 big impact on the overall cost of your transaction and your bottom line. This guide will explain how transfer taxes work in Orange 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.
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. The amount you owe in transfer taxes can vary significantly based on the property’s location. Different states, counties, and cities will often have 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. Sellers are responsible for paying any transfer taxes in Orange County. This is almost always the case with counties in California. Transfer taxes generally vary based on local regulations but can typically be categorized into three types: state, city, and county, depending on the state. Transfer taxes are sometimes called a “recordation tax” or “documentary stamp tax.” Here’s a quick look at how it works in Orange County: For property transfers in California, a documentary transfer tax of $0.55 per $500 of home value is applied. However, additional taxes may apply depending on your specific location in California. Orange County’s transfer tax rate is $0.55 per $500. This is in addition to the statewide transfer tax.What are transfer taxes?
Who pays for transfer taxes?
What are the types of transfer taxes?
State transfer taxes
County transfer taxes
