San Mateo County Transfer Tax 2026: City-by-City Rates & Real-Dollar Costs
The complete guide to Peninsula transfer taxes -- county base rate, city supplements, who pays, and exactly what it costs on your transaction.
San Mateo County is one of the most favorable transfer tax jurisdictions in the entire Bay Area. In my 13 years working Bay Area transactions, I have helped Peninsula sellers understand exactly what their net proceeds will look like before they list, and transfer tax is one of the first line items we review together. The numbers here are simple and favorable for most Peninsula cities, but the exceptions matter, and misunderstanding them costs sellers real money.
Transfer tax, formally called documentary transfer tax in California, is a one-time tax collected by the county recorder when a deed is recorded. Unlike property tax, which you pay every year based on your assessed value, transfer tax is paid once at the moment of sale. For most San Mateo County cities, it is a modest cost. For a handful of cities, it is a significant closing cost item that should be factored into your net proceeds estimate from day one of your sale planning.
This guide covers every incorporated city and the unincorporated county areas, provides real-dollar closing cost scenarios at Peninsula price points, explains who pays and why it matters in negotiations, and puts the Peninsula rates in context against the rest of the Bay Area, where sellers routinely pay 10 to 40 times more transfer tax on the same sale price.
That said, there are important city-by-city variations you need to know before closing, and a few surprises (East Palo Alto, San Mateo city) that can catch buyers and sellers off guard.
San Mateo County Transfer Tax: City-by-City Rate Table
The county base rate is $1.10 per $1,000 of value (split $0.55 county / $0.55 city). Many cities charge only the county rate. The exceptions are noted below.
| City / Area | County Rate | City Supplement | Combined Rate | Tax on $1.5M |
|---|---|---|---|---|
| Burlingame | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| San Mateo (city) | $1.10/$1K | $3.30/$1K (sales over $1M) | $4.40/$1K (0.44%) | $6,600 |
| Redwood City | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| Menlo Park | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| Palo Alto | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| East Palo Alto | $1.10/$1K | $10.90/$1K | $12.00/$1K (1.2%) | $18,000 |
| Foster City | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| San Bruno | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| South San Francisco | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| Daly City | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| Millbrae | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| Half Moon Bay | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
| Unincorporated SMC | $1.10/$1K | None | $1.10/$1K (0.11%) | $1,650 |
East Palo Alto's 1.2% rate stands out sharply against the Peninsula norm. On a $1.5M EPA home, the transfer tax is $18,000 -- compared to $1,650 across the street in Menlo Park or Palo Alto. This is a real factor in EPA pricing dynamics.
Real-Dollar Examples: Peninsula Closing Costs
Here's what transfer tax actually looks like as a line item on closing, compared across three Peninsula price points and two different cities.
Seller Closing Costs - $2,000,000 Burlingame Sale
Seller Closing Costs - $2,000,000 San Mateo City Sale
The San Mateo city supplement costs an additional $6,600 on a $2M sale versus Burlingame. Significant, but far below what sellers face in Oakland or SF.
What These Numbers Mean for Your Net Proceeds
For most Peninsula sellers, transfer tax is a minor closing cost relative to agent commission, title, and escrow fees. On a $2M Burlingame sale, transfer tax at $2,200 represents 0.11 percent of gross proceeds, less than the rounding error on a typical commission negotiation. For sellers in San Mateo city, the $8,800 transfer tax on a $2M sale is more meaningful, roughly equivalent to one-third of a percentage point of additional selling cost. It is worth knowing, but it does not change the fundamental attractiveness of the Peninsula as a market for sellers.
Where transfer tax becomes more significant in the Peninsula context is for sellers in East Palo Alto. A seller netting proceeds from a $1.8M East Palo Alto sale and comparing their position to a seller in adjacent Palo Alto will see a $19,560 transfer tax difference on the same price. That difference should be built into the seller's net sheet from day one of the listing conversation, not discovered at close.
How San Mateo County Compares to the Rest of the Bay Area
Context matters. Here's the Peninsula transfer tax in the broader Bay Area picture on a $1.5M sale.
| Location | Transfer Tax Rate | Tax on $1.5M Sale |
|---|---|---|
| Burlingame / Most SMC Cities | 0.11% | $1,650 |
| San Mateo (city) | 0.44% | $6,600 |
| Santa Clara County (typical) | 0.11% | $1,650 |
| Fremont / Hayward (Alameda) | 0.11% county + city | ~$1,650 |
| Oakland | ~1.5% combined | ~$22,500 |
| Berkeley | ~1.5% combined | ~$22,500 |
| San Francisco ($1.5M) | 2.50% | $37,500 |
| East Palo Alto | 1.20% | $18,000 |
Peninsula sellers in Burlingame, Palo Alto, Redwood City, and most San Mateo County cities enjoy some of the most favorable transfer tax rates in all of California. This is a genuine competitive advantage for the Peninsula market versus the East Bay.
Why the Peninsula Transfer Tax Advantage Matters for Move-Up Buyers
When I work with clients who are selling in Oakland or Berkeley and buying on the Peninsula, transfer tax savings are part of the financial story. A seller leaving a $1.5M Oakland home pays roughly $22,500 in combined transfer tax. When they buy a $1.8M Burlingame home, the seller of that home pays only $1,980. The total transfer tax burden in that cross-county transaction is $24,480, with nearly all of it falling on the East Bay side. A seller who stays entirely within San Mateo County, selling a $1.5M home and buying a $2M home, pays $1,650 on their sale and their buyer pays $2,200 on the purchase. The combined transfer tax exposure in a same-county Peninsula move-up is a fraction of what it would be in the East Bay or San Francisco.
For investors comparing net-of-tax returns across Bay Area markets, this difference is a real input. A $1.5M investment property in Oakland carried to sale generates a $22,500+ transfer tax liability. The same property in Menlo Park generates $1,650. That $20,000+ difference compounds in portfolio return calculations, particularly for investors who cycle properties frequently.
East Palo Alto: The Transfer Tax Exception That Changes the Math
East Palo Alto deserves special attention because it sits at the geographic heart of the Peninsula, flanked by Palo Alto and Menlo Park, yet charges a combined transfer tax rate of $12 per $1,000, or 1.2 percent. That is more than ten times the standard Peninsula rate and exceeds even Oakland's well-known 1.5 percent combined rate for properties under $300,000.
On a $1.5M East Palo Alto sale, the transfer tax is $18,000. On a $2M sale, it is $24,000. Compare that to $2,200 on a $2M Palo Alto sale, or $2,200 in Menlo Park, both of which are immediately adjacent. The $21,800 difference between a $2M sale in East Palo Alto versus Palo Alto is a real factor in how buyers and sellers on both sides of University Avenue price and evaluate properties.
East Palo Alto's higher transfer tax is funded through a city ordinance intended to support local housing and community services. From a seller's perspective, it is a cost you must account for accurately in your net proceeds calculation. From a buyer's perspective, it is generally the seller's cost, but in a negotiated transaction, a buyer offering to absorb some or all of the transfer tax can sometimes tip a close decision in a competitive situation.
San Mateo City's Supplemental Tax: The $1M Threshold
San Mateo city, distinct from San Mateo County, charges an additional $3.30 per $1,000 on sales above $1 million. This brings the combined rate to $4.40 per $1,000 for sales over that threshold. For a $1.5M San Mateo city sale, the combined transfer tax is $6,600, four times higher than the $1,650 in neighboring Burlingame. On a $2.5M sale, the transfer tax in San Mateo city is $11,000 versus $2,750 in Burlingame. That $8,250 gap is not immaterial in a transaction where sellers are already calculating net proceeds against their next purchase.
The practical implication: when a seller is comparing net proceeds across multiple properties they own, or when a buyer is evaluating comparable homes in San Mateo city versus nearby Burlingame or Foster City, transfer tax should appear in the analysis. It is one of the factors that contributes to minor but measurable price dynamics between adjacent Peninsula cities.
Who Pays and When Is It Due?
The documentary transfer tax is collected by the county recorder at the time the deed is recorded, typically at the close of escrow. In San Mateo County, the custom is for the seller to pay the transfer tax as part of their closing costs. This is reflected in the seller's closing statement as a deduction from gross proceeds, similar to commission and title fees. However, like all closing cost allocations in California, who actually pays the transfer tax is negotiable in the purchase contract.
In competitive multiple-offer situations on the Peninsula, some buyers include an offer to pay the seller's transfer tax as a sweetener to strengthen their bid. On a $2M Burlingame home where the transfer tax is $2,200, the gesture is symbolic but appreciated. On a $2M San Mateo city home where the transfer tax is $8,800, offering to pay it represents a meaningful additional contribution that can differentiate an offer. On an East Palo Alto property, where the transfer tax on a $1.5M sale is $18,000, a buyer offering to absorb the transfer tax is making a genuinely significant financial concession that sellers notice.
From a tax treatment perspective, the transfer tax paid by a seller is generally deductible as a selling expense that reduces their taxable gain on the sale. This is not a dollar-for-dollar reduction of income tax, but it does offset the basis calculation for capital gains purposes. Buyers who pay the transfer tax as part of their closing costs can generally add it to their cost basis in the property. Consult your CPA for guidance specific to your situation, as the deductibility depends on whether the property is a primary residence, investment property, or business property.
| Question | Answer |
|---|---|
| Who pays by custom? | Seller pays in San Mateo County (negotiable by contract) |
| When is it due? | At close of escrow, when deed is recorded |
| Who collects it? | Title/escrow company collects and remits to county recorder |
| Is it deductible? | For sellers: may be deductible as a selling expense -- consult CPA |
| Can buyer pay? | Yes -- buyers sometimes offer to pay as a negotiating sweetener |
| Is it shown on closing disclosure? | Yes, as a separate line item on the settlement statement |
Transfer Tax Exemptions and Special Scenarios
Not every deed transfer triggers a documentary transfer tax. California Revenue and Taxation Code Section 11911 et seq. governs when the tax applies and provides several exemptions that Peninsula sellers and buyers encounter more often than they might expect. Knowing these in advance can save thousands of dollars in transactions that qualify.
Trust Transfers
One of the most common exemptions in high-net-worth Peninsula households involves transfers into or out of a revocable living trust. When a homeowner transfers title from their personal name into their own revocable trust, no transfer tax is due because the beneficial ownership has not changed. The grantor still controls the property. This is a routine estate planning move and a frequent closing document item that title companies handle without triggering the tax. However, transfers out of an irrevocable trust, or transfers where a new beneficiary assumes control, may not qualify for the exemption. I always recommend that clients confirm with their title company and estate attorney before assuming a trust transfer is tax-free.
Divorce and Dissolution Transfers
Property transfers between spouses pursuant to a divorce judgment or legal separation agreement are exempt from documentary transfer tax under California law. This comes up regularly in Peninsula real estate because the equity stakes in Peninsula homes are substantial. A couple dividing a $3M Menlo Park home, where one spouse is buying out the other's interest, does not owe the $3,300 that would apply to an arm's-length sale. The exemption requires that the transfer be ordered by a court or documented as part of a marital settlement agreement. A quitclaim deed between spouses outside of any legal proceeding may not qualify, so the documentation matters.
LLC and Entity Transfers
Investors who hold Peninsula property in an LLC, corporation, or partnership sometimes ask whether reorganizing ownership interests triggers transfer tax. The answer depends on whether beneficial ownership actually changes. Under California law, if the same individual or entity retains the same proportional interest in the property before and after the transfer, no tax is due. But if the reorganization effectively transfers a meaningful interest to a new party, the county can assess transfer tax on the proportional value transferred. This is a gray area where the title company's underwriting call matters, and some reorganizations result in partial transfer tax assessments. Get written guidance before restructuring entity ownership on Peninsula investment property.
Foreclosure and REO Transfers
Transfers of property through foreclosure are sometimes partially or fully exempt from documentary transfer tax, depending on the circumstances. When a lender takes title through a trustee's sale, the transfer tax may be assessed only on the consideration paid (typically the outstanding loan balance) rather than the full property value. For Peninsula investment properties where loan balances may be substantially below current market value, this distinction can result in a lower transfer tax assessment at the foreclosure stage. Buyers purchasing REO (bank-owned) property from a lender are generally treated as arm's-length purchasers and do owe transfer tax at the standard rate on the full purchase price.
Gifts and Interspousal Transfers
Transfers between spouses or registered domestic partners that are not court-ordered may still qualify for transfer tax exemption in certain circumstances, including when no consideration is exchanged. A parent gifting a Peninsula property to an adult child with no loan assumption and no payment does not trigger transfer tax, but does trigger a property tax reassessment unless a parent-child exclusion applies. The distinction between transfer tax (county recorder) and property tax reassessment (county assessor) is important here -- the two taxes follow different rules and different exemptions. Understanding both dimensions before structuring a gift transfer is critical, particularly given that Peninsula properties can carry a property tax reassessment exposure of tens of thousands of dollars per year if the exclusion is missed.
Peninsula Seller Strategy: Timing, City Selection, and Tax Planning
In my 13 years of Bay Area real estate, the sellers who are happiest with their closing results are the ones who ran the full net proceeds calculation before they listed, not after. Transfer tax is one of the line items that surprises sellers least when they have worked through the numbers in advance. But it is often the city selection itself that provides an opportunity.
If you own property in multiple Peninsula cities, or if you are considering whether to sell a San Mateo city home versus a Burlingame home first, the transfer tax difference is a real input into the sequencing decision. On a $2.5M sale, the transfer tax gap between San Mateo city ($11,000) and Burlingame ($2,750) is $8,250. That does not change which home sells for more or which neighborhood you prefer, but it is a legitimate factor in the order of operations for a seller with multiple properties.
For sellers in East Palo Alto specifically, the 1.2% transfer tax is a cost that I flag in the very first listing appointment. On a $1.8M sale, the transfer tax is $21,600. That is not a rounding error. It affects your net sheet materially, and it affects how you should think about pricing strategy relative to adjacent Menlo Park or Palo Alto inventory. Buyers making side-by-side comparisons across city lines often factor in the total cost of ownership, including transfer tax paid by the seller, when making offers. A well-informed EPA seller understands that the transfer tax is priced into the market to some degree and structures their net proceeds expectations accordingly.
For buyers purchasing on the Peninsula, the strategic angle is different. In cities where the transfer tax is minimal (most of San Mateo County), offering to pay the transfer tax as a buyer concession is a low-cost sweetener that costs you $1,650-$2,200 on a $1.5M-$2M home but signals to the seller that you are serious and flexible. In a market where multiple offers are common on well-priced Peninsula inventory, small gestures of financial flexibility matter. In San Mateo city or East Palo Alto, where the transfer tax is substantially higher, offering to pay it as a buyer is a more significant commitment that should be evaluated against your total closing cost budget before you include it in an offer.
The bottom line for Peninsula sellers: San Mateo County is one of the best transfer tax environments in the entire Bay Area. Run your net sheet early, understand your city's specific rate, and do not let transfer tax be a surprise on your closing statement. Call me at (510) 277-4420 and I will walk you through the full closing cost picture before you list.
Frequently Asked Questions
Buying or Selling on the Peninsula?
I've helped hundreds of buyers and sellers navigate the Peninsula market -- from Daly City to Palo Alto. Let me run your closing cost numbers and make sure there are no surprises at the table.
Justin Borges · DRE #01999206 · LA Metro Home Finder · Bay Area & Greater LA
