If you’re selling a home in Santa Monica, it’s important to know how transfer taxes might impact your bottom line. A real estate transfer tax is a fee charged by the state, county, or city when property ownership changes hands. These taxes are typically calculated as a percentage of the sale price and can vary widely depending on your location. In Santa Monica, sellers are responsible for paying city, county, and state transfer taxes, which can add up quickly without proper planning. In this guide, we’ll break down how transfer taxes work in Santa Monica, who typically pays them, and what you might expect to owe when selling your property. We’ll also cover key exemptions, how to estimate your transfer tax costs, and whether these taxes are deductible. Real estate transfer taxes are charges imposed by a government entity when a property’s ownership changes hands. According to the Federal Trade Commission, these taxes are typically applied at the state or local level when a property’s title is officially transferred from seller to buyer. The title is the legal documentation that proves ownership, and moving it from one person to another usually comes with a cost. The exact amount you’ll pay depends on where the property is located, as each jurisdiction, state, county, and city can set its tax rates and rules. Like other taxes, transfer taxes are a way for governments to generate revenue that supports public services and infrastructure. The responsibility of transfer taxes depends on the state, city, or county where the transaction is taking place. In Santa Monica, like in all Los Angeles counties, transfer taxes are the responsibility of the seller.What are transfer taxes?
Who pays for transfer taxes?
