What Transfer Taxes Do RWC Sellers Actually Pay?

Selling in Redwood City and trying to pin down which transfer taxes hit your net at closing? You are not alone. The term sounds simple, yet the details vary by county, city, contract, and exemptions. In this guide, you will learn what the documentary transfer tax is, how it is calculated in San Mateo County, how city add-ons may apply, and practical steps to verify your exact number before you list. Let’s dive in.

Transfer tax basics

Documentary transfer tax is a tax on the transfer of real property that is collected when the deed is recorded. It is typically based on the price shown on the recorded instrument. In San Mateo County, escrow or title collects the tax as part of closing, then remits it to the County Recorder when your deed is recorded.

Who pays is determined by the purchase agreement. In many local transactions, sellers customarily pay the county transfer tax, but this is negotiable. Your contract should clearly allocate this cost to avoid surprises.

Transfer tax is separate from recording fees, escrow charges, and title insurance premiums. You will see multiple line items on your settlement statement. Transfer tax is one of them.

How the tax is calculated

Most California counties, including San Mateo County, use a per 1,000 dollars calculation. The general method is straightforward:

• Transfer tax = (Sale price ÷ 1,000) × rate per $1,000

Some places express the rate as a percentage. For example, $1.00 per $1,000 equals 0.10 percent. The math is the same either way.

Here is an illustrative example using a commonly seen Bay Area county rate. This is for demonstration only. Always verify the current San Mateo County rate before relying on a dollar amount.

• Example: If the county rate were $1.10 per $1,000 and your sale price were $1,500,000, then the transfer tax would be 1,500 × 1.10 = $1,650.

Your escrow officer can run the exact number for your transaction once price and terms are set.

San Mateo County and city add-ons

San Mateo County imposes its own documentary transfer tax that is collected at recording. The Recorder or Assessor–County Clerk is the authoritative source for the current rate, exemptions, and any required documentation.

Some cities within San Mateo County also impose a separate city transfer tax on top of the county tax. These municipal levies are set by city ordinance and may be quoted per $1,000 or as a percentage. If a city tax applies, your closing statement may show both a county transfer tax and a city transfer tax as separate items.

• Redwood City sellers should confirm whether Redwood City imposes a city transfer tax in addition to the county tax.
• As context, the City of San Mateo has historically had a separate city transfer tax. Other cities may have different rules or none at all.

Because rates and ordinances can change by ballot measure or city action, verify both the county rate and any Redwood City municipal levy with official sources before you finalize your numbers.

Who pays in Redwood City

Payment is contract-specific. While it is common in many Peninsula deals for the seller to pay the county transfer tax, buyers and sellers can negotiate this allocation. Lender requirements and local practice sometimes influence the outcome, but the purchase agreement controls.

The key is clarity. Make sure the allocation is spelled out in your offer terms. If you accept an offer that shifts transfer tax to the buyer, confirm that the settlement statement reflects that allocation. If you agree to pay, budget for it as part of your net sheet.

How it affects your net proceeds

Transfer tax is a closing cost. If you pay it as the seller, it directly reduces your net proceeds. If the buyer pays, the contract price and overall negotiation may still reflect that cost in the final economics of the deal.

Ask your escrow officer for an itemized estimated closing statement that shows the transfer tax line. This lets you see the impact early, compare offers on an apples-to-apples basis, and avoid last-minute adjustments.

Common exemptions and special cases

Exemptions exist, but they are specific and documentation driven. If you believe an exemption applies, alert your title or escrow team early so they can prepare forms and confirm requirements with the County Recorder.

Typical exemptions that may apply include:

• Transfers between spouses, including some divorce-related transfers.
• Transfers to or from certain revocable trusts where the transferor remains the beneficiary.
• Some transfers between parent and child, and some transfers to entities where proportional ownership and control remain the same.
• Transfers by foreclosure or trustee’s sale, which may follow different rules.

Each exemption has rules and required affidavits or proof. The county determines eligibility and documentation.

Transfer tax vs. other closing charges

It is easy to confuse transfer tax with other fees. Here is how to keep it straight:

• Documentary transfer tax. Charged on the real property transfer and collected at recording. Shows as its own line item.
• Recording fees. Per-page fees the county charges to record documents. These are separate from transfer tax.
• Escrow fees and title insurance. Service fees and insurance premiums paid to the title and escrow company.
• Other documentary stamps or taxes. If a city levy applies, it will show separately.

Expect each of these to appear as distinct entries on your settlement statement.

What you will see on your statement

Your closing statement will include the sale price on the credit side and costs on the debit side. If you are paying the transfer tax, look for a line such as “County documentary transfer tax” and, if applicable, a separate line such as “City transfer tax.”

If the buyer is paying, those lines appear on the buyer’s side instead. Either way, escrow collects and remits these amounts to the county at recording. Keep copies of the recorded deed, any exemption filings, and the final statement for your records.

Quick math examples

Use these sample calculations as a framework. Replace the rate with the current San Mateo County rate and add any city levy if applicable.

• Home sale at $1,250,000 with illustrative county rate of $1.10 per $1,000: 1,250 × 1.10 = $1,375 in county transfer tax.
• Home sale at $2,400,000 with illustrative county rate of $1.10 per $1,000: 2,400 × 1.10 = $2,640 in county transfer tax.

If a city also imposes a transfer tax, compute that separately using the city’s formula, then add the two together. Confirm the exact rates with official sources or your escrow officer.

A Redwood City seller checklist

Use this checklist to stay ahead of transfer tax questions and avoid last-minute surprises.

Before you list

• Ask your listing agent to verify the current San Mateo County transfer tax rate and whether Redwood City currently imposes a city transfer tax.
• Request a pre-listing estimated closing statement from a title or escrow officer that shows the transfer tax line and any city levy.
• If you think an exemption applies, provide documentation early so escrow can confirm eligibility and prepare the necessary affidavits.

While negotiating

• Specify who pays transfer taxes in the purchase agreement. Do not rely on assumptions or “local custom.”
• Consider the net effect of any cost shifts. A buyer who pays the tax might offer a higher price or vice versa. Compare offers using a net sheet.
• If a city tax applies, confirm that both county and city amounts are accounted for in your terms.

At closing

• Review your settlement statement to confirm transfer tax amounts and allocation match the contract.
• Confirm that any exemption filings are complete and included with the recording package.
• Keep copies of recorded documents and proof of tax payment with your closing file.

How to verify today’s rate

Because county rates and city ordinances can change, verify your numbers with official sources before you set expectations.

• San Mateo County Recorder or Assessor–County Clerk. Confirm the current documentary transfer tax rate, exemptions, and required forms.
• City of Redwood City. Confirm whether a city transfer tax applies and how it is calculated.
• Your title or escrow officer. Obtain a written estimate that shows county and any city transfer tax line items based on your agreed price and terms.

This simple verification step protects your net and keeps your sale on schedule.

Final thoughts

Transfer taxes should not be a mystery or a last-minute surprise in Redwood City. When you understand the formula, confirm whether a city levy applies, and document any exemptions early, you can negotiate with confidence and protect your net proceeds. If you would like a precise estimate for your property, ask your escrow officer for an itemized statement and align the contract terms with your goals.

If you are planning a sale and want a clear, concierge plan from pricing through closing, connect with The Anagnostou Team to Request a Home Valuation. We will confirm current county and city requirements, prepare a custom net sheet, and help you navigate each step with confidence.

FAQs

How are Redwood City transfer taxes calculated?

• Most often by multiplying the sale price divided by 1,000 by the county’s rate per $1,000, then adding any city levy if applicable.

Does Redwood City also charge a city transfer tax?

• It may or may not at any given time, since city ordinances can change. Verify with Redwood City’s official channels or your escrow officer.

Who usually pays the San Mateo County transfer tax?

• It is contract-specific and negotiable. Many local deals allocate the county transfer tax to the seller, but your purchase agreement controls.

Are there exemptions that reduce or remove the tax?

• Yes. Common examples include transfers between spouses, certain trust transfers, some parent-child transfers, and some entity restructures, all subject to documentation.

Where will I see transfer tax in my closing documents?

• As its own line on the settlement statement. If both county and city taxes apply, you will see separate line items for each.

Can I estimate the tax before I list?

• Yes. Ask escrow for a written estimate that includes the current county rate, any city levy, and your expected sale price so you can plan your net.