Selling a home or settling an estate in San Mateo and wondering why there might be two different transfer taxes on your closing statement? You’re not alone. Transfer taxes can be confusing because the county and the City of San Mateo can both levy their own charges when a deed changes hands. In this guide, you’ll learn how each tax works, who typically pays, how to estimate your costs, what exemptions estates might qualify for, and how to confirm the exact amount before closing. Let’s dive in.
County vs. city transfer taxes
In San Mateo, two separate taxes can apply to the same sale:
- The San Mateo County documentary transfer tax
- The City of San Mateo conveyance (transfer) tax
These are local taxes triggered when a deed is recorded. They are not the same as property tax reassessment, income tax, capital gains tax, or escrow/title fees. Escrow typically collects any required transfer taxes at closing so your deed can be recorded.
Local custom often places payment on the seller, but the purchase contract controls. You can negotiate who pays or split the cost. Always check your signed agreement.
Important: Rates, brackets, and exemptions are set by local ordinance and can change. Always confirm with the San Mateo County Recorder and the City of San Mateo before relying on any numbers.
San Mateo County documentary transfer tax
What it is
The county documentary transfer tax is charged when a deed conveying an interest in real property is recorded in San Mateo County. If your sale records in the county, this tax is part of your closing unless an exemption applies.
How it’s calculated
Counties commonly express the tax as dollars per $1,000 of the sale price, or as a percentage. The math is straightforward either way:
- Per $1,000 format: Tax = (Sale price ÷ 1,000) × Dollars per $1,000
- Percent format: Tax = Sale price × Rate as a decimal
Example using a placeholder rate so you can see the math:
- If the county rate were $A per $1,000 and your price is $P, tax = (P ÷ 1,000) × A.
- If the county rate were R percent, tax = P × 0.R.
Your escrow officer will run the exact calculation once your price, terms, and any exemptions are confirmed.
Who typically pays and when
Local practice often assigns the tax to the seller, but the purchase agreement can allocate it to the buyer or split it. Escrow collects the county tax at closing and handles remittance so the deed can be recorded.
Common exemptions to ask about
While specific qualifications and forms vary by county, categories that often qualify include:
- Transfers pursuant to probate or court order
- Transfers between spouses or registered domestic partners
- Transfers into or out of a revocable living trust where the beneficial owner doesn’t change
- Transfers involving government entities
- Certain foreclosure-related deeds
Escrow or title may require affidavits, certified court documents, or trust paperwork to evaluate an exemption. Ask early so there are no surprises at funding.
City of San Mateo conveyance tax
What it is
The City of San Mateo may levy a municipal transfer tax in addition to the county’s tax. The city sets its own rate structure and rules by ordinance. Some cities use a flat rate, while others use tiered brackets that change with the sale price.
How it’s calculated
The city tax follows the same basic math as the county tax. It may be shown as a dollar amount per $1,000 or a percentage. Your escrow officer will apply the city’s current rate schedule to your sale price.
- Per $1,000 format: Tax = (Sale price ÷ 1,000) × Dollars per $1,000
- Percent format: Tax = Sale price × Rate as a decimal
Because municipal rates and brackets can change, verify the City of San Mateo’s current ordinance or Finance Department guidance before you estimate your total.
Who pays and when
As with the county tax, local custom often places responsibility on the seller, but the contract controls. Escrow typically collects any city transfer tax at closing and files any required city forms or certificates with the recording package.
City exemptions
Many city codes mirror county-level exemptions such as probate transfers, intra-family transfers, government transfers, or deeds that simply correct title. That said, the city’s ordinance controls. If you are handling an estate transfer, plan to provide probate paperwork or an affidavit to claim any city exemption.
Estate and probate transfers: what to know
When estates may be exempt
Many jurisdictions offer exemptions or special handling for transfers under a probate court order or by a personal representative. Estates should not assume automatic exemption. The office that records the deed will require supporting documents, and the city may require its own form.
Documents to gather early
If you are selling a property from an estate, expect escrow/title to request:
- Certified Letters Testamentary or Letters of Administration
- Court orders authorizing the sale, if applicable
- A certified death certificate
- Trust documents, if claiming a trust-transfer exemption
- Any county or city transfer tax forms or affidavits
Providing these items early helps your escrow officer confirm eligibility and prevent closing delays.
Special cases
Transfers that only change the manner of holding title, such as moving a property into or out of a revocable living trust where the beneficial owner remains the same, are commonly treated as non-taxable. Foreclosure-related deeds and deeds in lieu may also receive different treatment. Always confirm with escrow/title, who will check with the county recorder and, if applicable, the city.
Planning your closing costs
Where transfer taxes appear
You will see separate line items for the county documentary transfer tax and, if applicable, the City of San Mateo conveyance tax on your closing statement. Ask your escrow officer for a pre-closing estimate with both tax lines called out so you can plan funds for closing.
Quick worksheet to estimate
Use the current county and city rates to plug into one or both of these common forms:
Per $1,000 method
- County tax = (Sale price ÷ 1,000) × County $ per $1,000
- City tax = (Sale price ÷ 1,000) × City $ per $1,000
- Total transfer tax = County tax + City tax
Percent method
- County tax = Sale price × County rate (decimal)
- City tax = Sale price × City rate (decimal)
- Total transfer tax = County tax + City tax
Label any math you do as an estimate until escrow confirms the official amount.
How to verify current rates and rules
Because rates, brackets, and exemption procedures can change by ordinance, take these steps before you finalize a budget:
- Contact the San Mateo County Recorder or Treasurer-Tax Collector to confirm the current county documentary transfer tax rate, recording requirements, and exemption affidavits.
- Check the City of San Mateo’s Municipal Code or Finance Department for the city conveyance tax rate schedule, any brackets, and city-specific exemptions or forms.
- Ask your escrow or title officer to calculate the exact transfer tax for your transaction and to identify any required paperwork.
- If you are administering an estate, consult your estate attorney or the probate court clerk about the proper documents and timing.
Always verify current rates and exemption rules with the county recorder and the City of San Mateo before relying on any published numbers.
Seller and estate checklist
Use this quick list to stay on track:
- Review your purchase agreement to confirm who pays each tax.
- Request a pre-closing statement with separate county and city tax lines.
- Confirm current county and city rates with the proper offices.
- If an exemption may apply, gather affidavits and supporting documents early.
- Estates: provide certified letters, court orders, and trust documents to escrow.
- Ask escrow/title to confirm any city-specific forms or certificates needed at recording.
Common questions sellers ask
- Who usually pays? Local custom often says the seller, but your contract controls.
- How much will I owe? It depends on the current county and city rates and any exemptions. Escrow will compute the final amount.
- Will transfer taxes change my property tax assessment? Transfer taxes are a closing cost. Assessment and any reassessment are separate and handled by the county assessor under state law.
Wrap-up and next steps
When you sell or transfer property in San Mateo, you may owe two transfer taxes: one to the county and one to the city. The amounts depend on local ordinances and any exemptions your situation allows. Your escrow officer will calculate the exact figure, but you can estimate using the formulas above once you confirm current rates.
If you want help planning your net proceeds, preparing documents for an estate sale, or negotiating who pays what in your contract, reach out to JLU Real Estate for clear guidance and a smooth closing experience. Schedule a personalized consultation and get a tailored estimate for your situation.
FAQs
Who normally pays transfer taxes in San Mateo home sales?
- Local custom often places responsibility on the seller, but the purchase contract can allocate payment to either party or split it. Always check your agreement.
How do I calculate both county and city transfer taxes?
- Use the current county and city rates and apply either format: (Price ÷ 1,000) × Dollars per $1,000, or Price × Rate as a decimal. Add the two results for a total.
Are estate transfers in San Mateo exempt from transfer taxes?
- Many transfers under probate or by a personal representative may qualify, but you must provide required documents (such as letters testamentary) and follow county and city procedures.
When are transfer taxes collected during closing?
- Escrow typically collects both county and city transfer taxes at closing and submits them with the recording package so the deed can be recorded.
Do transfer taxes affect property tax reassessment in San Mateo County?
- No. Transfer taxes are a closing cost. Property tax assessment and any reassessment are handled separately by the county assessor under state law.
