San Francisco Real Estate Taxes: What Buyers and Sellers Actually Pay

Two taxes come up in almost every San Francisco home sale: the city transfer tax, paid once at closing, and property tax, paid every year after. On a $1.2 million condo that works out to about $9,000 in transfer tax and roughly $14,160 a year in property tax. Here's how each one works, with real numbers.

These are the questions we get on almost every first call, from buyers budgeting for closing day and from sellers figuring out what they'll actually walk away with. So we put the answers in one place. 

San Francisco Transfer Tax

The city charges a transfer tax whenever property changes hands. The rate depends on the full sale price, and the whole price is taxed at one rate.

• Up to $250,000: $2.50 per $500 (0.50%)
• $250,000 to under $1 million: $3.40 per $500 (0.68%)
• $1 million to under $5 million: $3.75 per $500 (0.75%)
• $5 million to under $10 million: $11.25 per $500 (2.25%)
• $10 million to under $25 million: $27.50 per $500 (5.50%)
• $25 million and up: $30.00 per $500 (6.00%)

What that looks like

• $850,000 condo: about $5,780
• $1.2 million condo: about $9,000
• $2.5 million single-family home: about $18,750
• $6 million home: about $135,000

Who pays it?

In San Francisco the seller usually pays the city transfer tax, but it's negotiable, and in some deals the buyer agrees to split it. Your purchase contract spells it out.

Watch the $5 million line

At $5 million the rate triples, so pricing a home just under a tier line can matter. We talk through this with every seller near one of these lines.

San Francisco Property Tax

Under Prop 13, your home is assessed at what you paid for it. The base rate is 1%, and voter-approved bonds bring the typical San Francisco total to about 1.18% a year. After that, the assessed value can only go up by up to 2% a year, no matter what the market does.

What that looks like in year one

• $850,000 condo: about $10,030 a year
• $1.2 million condo: about $14,160 a year
• $2.5 million home: about $29,500 a year

For a condo, budget for HOA dues on top of that.

The Supplemental Tax Bill Surprise

After you buy, the Assessor resets your home's value to the purchase price and sends a supplemental bill for the gap between the old assessed value and your price, prorated for the rest of the tax year. It arrives months after closing, it isn't paid from your mortgage escrow, and it catches a lot of first-time buyers off guard. Set money aside for it.

Other Things Worth Knowing

• Homeowners' exemption: file it once and it cuts your assessed value by $7,000, worth about $80 a year.
• Prop 19: homeowners 55 and older can, in many cases, move their Prop 13 base to a new home anywhere in California.
• Multifamily and investment buyers: rent-controlled buildings and larger deals carry their own tax questions. Ask us before you write an offer.
• Ballot measures: San Francisco voters regularly weigh in on transfer tax changes, mostly aimed at large commercial and multifamily deals. We'll update this guide when anything changes for typical home sales.

Shopping new construction? See our guide to new condos in San Francisco.

San Francisco Real Estate Tax FAQ

How much is the transfer tax on a $1 million home in San Francisco?

At $1 million the rate is $3.75 per $500, or 0.75%, so the city transfer tax is about $7,500. Just under $1 million, the rate drops to 0.68%.

Does the buyer or seller pay transfer tax in San Francisco?

The seller usually pays it, but it's negotiable and set in the purchase contract.

What is the property tax rate in San Francisco?

About 1.18% of your assessed value a year: the 1% Prop 13 base plus voter-approved bonds. Your assessed value starts at your purchase price and can rise up to 2% a year.

What is a supplemental property tax bill?

A one-time bill the Assessor sends after you buy, covering the difference between the old assessed value and your purchase price for the rest of the tax year. It isn't paid through escrow, so plan for it.

We're Lynn and Nick, a San Francisco real estate team at Christie's International Real Estate Sereno. We help buyers and sellers across the city in residential real estate and new development.