Buying or Selling a Home Just Got More Expensive in Oakland, Berkeley and El Cerrito
Effective for 2019 and beyond, city transfer taxes (which are customarily split 50/50 between a buyer and seller of property), changed as follows:
The previous rate of 1.5% changes to a sliding scale as follows:
- Based on full value up to $300,000.00 1% ($10.00 Per $1,000.00)
- Based on full value over $300,000.00 to $2 Million 1.5% ($15.00 Per $1,000.00)
- Based on full value over $2 Million to $5 Million 1.75% ($17.50 Per $1,000.00
- Based on full value over $5 Million 2.5% ($25.00 Per $1,000.00)
The previous rate of 1.5% increases to 2.5% for transactions above $1.5 million.
There has been no city transfer tax. Measure V implements a new tax of $12.00 per $1,000.00 in 2019.
For example, a home that sells for $2 million in Berkeley will now generate $50,000 in city transfer taxes, up from $30,000 last year. Split between the buyer and seller, each will be required to pay an additional $10,000 out of escrow. That same sale in Oakland will now cost the buyer and seller an incremental $2,500 in transfer taxes. In El Cerrito, it’s an additional $12,000 to the buyer and seller.
Should you have any questions about how this may impact your potential sale, please don’t hesitate to contact me.