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Measure E Transfer Tax in San Jose

Luxury Tax Measure E Transfer TaxAs of July 1, 2020, the Measure E transfer tax in San Jose kicked in. What’s involved, and who pays?

Homes sold for more than $2 million in San Jose now are billed an additional transfer tax, depending on the price point. San Jose already has a city transfer tax, which is $3.30 per thousand, which customarily is split 50/50 between buyer and seller. The new Measure E fee is on top of that amount.

The new Measure E transfer or conveyance tax is progressive, with higher values paying a steeper tax. There are not many homes in San Jose selling for over $10 million, but perhaps they wrote this in planning for future inflation of real estate sale prices. (Please keep in mind that right now the average house in San Jose is selling for about $1,850,000, so it may not be long before a $2 million  house represents just something ordinary and not a luxury home.)

• $7.50 per $1,000 of transfer value on properties priced between $2 million and $5 million
• $10 per $1,000 of transfer value on properties priced between $5 million and $10 million
• $15 per $1,000 of transfer value on properties priced at $10 million and above.

For example, let’s see how those dollars play out in real life. This morning I ran the numbers (pulled from the Old Republic Title website, which anyone can use – see the page for net sheets). Please note that traditionally the seller pays the county transfer tax here, and the city transfer tax is split 50 / 50 between the buyer and the seller. This is not fixed by law and can be negotiated. The chart below displays who pays how much if it were handled the common way here today.

Meaure E - San Jose real property transfer tax

Who pays the new Measure E transfer tax?

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