Are you selling or buying a home in Sacramento? You may have been curious about transfer taxes in the Golden State. Is there a Sacramento transfer tax? Who pays for it? How much is it? This quick guide will answer all of these questions and more. We will discuss who is responsible for paying the Sacramento transfer tax, how much it is, the types of transfer taxes you can expect to encounter, and any possible exemptions you might be eligible for. The Federal Trade Commission defines transfer taxes as a “state or local tax payable when title to property passes from one owner to another.” When you transfer the title of your home — your legal right to own the property — to someone else, the government charges a tax on this exchange. Where your property is located will determine what you’ll owe in transfer taxes according to local state, county, or city guidelines. Like other taxes, these are designed to generate revenue. In Sacramento, transfer taxes are paid by the buyer or the seller, depending on the terms of the sales agreement. Transfer taxes can differ based on local regulations, but they generally fall into three categories: state, city, and county. Here’s how it works in Sacramento. In California, a documentary transfer tax of $0.55 is charged for every $500 of property value during transfers. Additional taxes may apply depending on specific locations within the state. Sacramento County’s transfer tax rate mirrors the state rate at $0.55 per $500. Sacramento imposes a city transfer tax of $2.75 for every thousand dollars of the purchase price.What are transfer taxes?
Who pays for transfer taxes in Sacramento?
What are the types of transfer taxes?
State transfer taxes
County transfer taxes
City transfer taxes
