Are you planning to sell in Pacific Heights and wondering who pays San Francisco’s transfer tax, what the rate is, and how to budget for it? You are not alone. This line item can be significant at local price points, and it directly affects your net proceeds and your next purchase. In this guide, you’ll learn what the tax is, who typically pays, common exemptions or credits, and simple examples at Pacific Heights price tiers so you can plan with confidence. Let’s dive in.
What the San Francisco transfer tax is
San Francisco’s documentary transfer tax is charged when a deed that transfers real property is recorded. The San Francisco Treasurer & Tax Collector administers it, and the tax is generally based on the consideration shown on the deed, usually the sale price or debt assumed.
The city uses a tiered rate schedule. Higher-priced transfers fall into higher tiers. This is different from some California counties that charge a flat amount per thousand dollars. The tax is due at recordation and is typically collected by the title or escrow company at closing.
Who pays the tax in practice
Legally, the party recording the deed is responsible for paying the tax at the time of recording. In everyday San Francisco transactions, the seller customarily pays the transfer tax on residential sales.
You can negotiate this in the purchase agreement. Some deals split the tax, and in certain situations a buyer may agree to cover it. Your title or escrow officer will calculate the exact amount and collect it at closing according to the contract.
Rates and how it is calculated
San Francisco uses a price-tier schedule to determine the rate applied to the consideration shown on the deed. At closing, escrow will compute the tax using the official city rate table and your contract terms.
For planning purposes, it helps to model the tax as rate multiplied by the sale price. The examples below assume a single rate applied to the full sale price. Always confirm the current official rate table and how it applies to your transaction with your escrow officer before relying on any estimate.
Common exemptions and credits
Some transfers may qualify for exemptions. These are examples that often appear in San Francisco, subject to current rules and required documentation:
- Transfers between spouses or registered domestic partners.
- Transfers resulting from death when property passes to heirs by operation of law.
- Transfers to certain governmental entities.
- Transfers tied to corporate reorganizations or mergers that meet specific criteria.
- Transfers that do not change beneficial ownership, such as moving a property into a revocable trust with the same beneficiary.
Exemptions usually require filing an affidavit or claim of exemption with the deed. Your title company can prepare the paperwork. In limited situations, San Francisco may allow a credit or offset where county-level taxes overlap. If a county documentary tax is also charged, escrow will itemize it.
Watchouts to keep in mind:
- A transfer-tax exemption does not automatically mean you avoid property-tax reassessment. Some transfers, such as parent-child, may still need a separate assessor exclusion filing.
- If a buyer assumes a mortgage or other debt, that can affect the consideration used to compute the tax.
Pacific Heights examples: what to budget
The numbers below use illustrative rates for modeling only and assume typical closing inputs. Confirm the current San Francisco Treasurer & Tax Collector rate table with your escrow officer before you rely on any estimate.
Assumptions for examples:
- Total commission: 5.5% of sale price (example only; your rate may differ).
- Other seller closing costs: $6,000 (estimate; varies by deal).
- Mortgage payoff: not included in these examples so you can plug in your own number.
- Rate application for modeling: single rate applied to the full sale price.
Net proceeds formula you can reuse:
- Net proceeds ≈ Sale price − (Sale price × commission %) − (Sale price × transfer tax %) − other seller closing costs − mortgage payoff
Illustrative examples for Pacific Heights price points:
| Sale price | Commission (5.5%) | Transfer tax (illustrative) | Other costs | Estimated net proceeds |
|---|---|---|---|---|
| $2,000,000 | $110,000 | $20,000 (1.00%) | $6,000 | $1,864,000 |
| $4,000,000 | $220,000 | $40,000 (1.00%) | $6,000 | $3,734,000 |
| $8,000,000 | $440,000 | $120,000 (1.50%) | $6,000 | $7,434,000 |
| $15,000,000 | $825,000 | $337,500 (2.25%) | $6,000 | $13,831,500 |
These figures illustrate why transfer tax planning matters in Pacific Heights, where many homes trade in mid to upper tiers. Even small changes to rate, commission, or closing costs can move your net by tens or hundreds of thousands of dollars.
Quick seller checklist
- Confirm the current San Francisco transfer tax rate table with your escrow officer.
- Ask for a seller net sheet that itemizes transfer tax, commissions, escrow/title fees, prorations, and any county component.
- Obtain payoff statements for all mortgages, HELOCs, and liens so your net is accurate.
- Review your purchase contract to see who is responsible for the tax.
- Discuss exemptions or credits with your title company and your CPA or attorney if applicable.
Planning tips for trade-up buyers
If you plan to use your sale proceeds as a down payment on your next home, time your closings carefully. Transfer tax is collected at recordation of your sale, which reduces cash available at close.
Coordinate with your lender, escrow, and agent on escrow timelines, rent-backs, or bridge-financing options. Also consider negotiating the transfer tax in your contract, especially for higher-price deals where the impact is larger.
What to do next
If you are thinking about selling in Pacific Heights, the next step is to get a clear, personalized net estimate with today’s rates and fees. You will know what you can bring to your next purchase and where to negotiate.
For one-on-one guidance, a custom net sheet, and a strategy to maximize your outcome, connect with Oliver Burgelman. Request a free home valuation and a plan tailored to your timeline.
FAQs
What is the San Francisco transfer tax on home sales?
- It is a city tax collected when a deed transferring real property is recorded, calculated from the consideration shown on the deed using a price-tier schedule.
Who usually pays San Francisco transfer tax in Pacific Heights?
- By local custom the seller typically pays on residential deals, but the purchase contract can assign payment to either party or split it.
When is the transfer tax due and who collects it?
- It is due when the deed is recorded. Your title or escrow company calculates the amount and pays it at closing from collected funds.
Are there exemptions or credits available?
- Some transfers may qualify, such as interspousal, certain estate-related, specific corporate reorganizations, or no-change-in-beneficial-ownership cases. Documentation is required and must be verified.
How do I estimate transfer tax for my sale price?
- Use rate multiplied by sale price as a model and ask your escrow officer to confirm the current official rate table and how it applies to your transaction.
Can transfer tax be negotiated in the purchase agreement?
- Yes. While sellers usually pay in San Francisco, parties can negotiate who covers it or split it, especially in higher-priced transactions.
About Oliver Burgelman
Oliver Burgelman is a San Francisco and Marin real estate agent known for clear, data-driven guidance and a disciplined approach to pricing, preparation, and negotiation. His work focuses on helping sellers and buyers understand how homes actually trade at a neighborhood and block level, so decisions are grounded in market reality rather than assumptions. Clients value his straightforward advice, attention to detail, and steady communication throughout the process.
Contact
Oliver Burgelman
Real Estate Agent | San Francisco & Marin
📞 415-244-5846
🌐 https://www.burgelmanhomes.com
DRE #01388135
