Transfer taxes can sneak up on your closing costs. In San José, they add up fast, especially if Measure E applies to your sale. If you are buying or selling in Santa Clara County, a clear estimate helps you budget, negotiate, and avoid last‑minute surprises. This guide explains the county tax, the city conveyance tax, and Measure E, with current rates, who typically pays, examples, and where to verify the numbers. Let’s dive in.
San José transfer taxes at a glance
- County documentary transfer tax: $0.55 per $500 of price (about 0.11%). See the Clerk‑Recorder’s fee schedule for rates that appear on deeds at recording. Santa Clara County Clerk‑Recorder fee schedule
- City conveyance tax, San José: $1.65 per $500 (about 0.33%). Applies to properties inside San José and is collected with the county tax. Recorder fee details
- Measure E, San José: additional graduated tax that applies when the sale meets or exceeds the exemption threshold. See threshold and tiers below. City Measure E page
All three can stack. A San José sale can be subject to the county tax, the city tax, and Measure E at the same time. Recorder transfer tax overview
Measure E threshold and tiers
- Current exemption threshold: $2,300,000 effective July 1, 2025. Confirm the threshold that applies to your closing date, since it is indexed. County Measure E information
- Measure E rates apply to the full sale price when triggered:
- $2,300,000.01 to $5,000,000: 0.75%
- $5,000,000.01 to $10,000,000: 1.00%
- Over $10,000,000: 1.50% Learn more from the City’s Measure E page. City Measure E page
How the taxes are calculated and collected
County documentary transfer tax
The county computes the tax on the consideration stated on the deed, often the sale price, at $0.55 per $500. You pay it when the deed is recorded with the Santa Clara County Clerk‑Recorder. Recorder real estate recording
San José city conveyance tax
If the property sits inside San José, the city tax is added at $1.65 per $500 and collected at recording along with the county tax. Recorder fee details
Measure E real property transfer tax
When your price meets or exceeds the current threshold, the applicable Measure E rate applies to the entire price. The County collects it on San José’s behalf at recording. County Measure E information
Who usually pays at closing
Custom and contract control who pays. In Santa Clara County, the county tax is often listed as a seller cost, and the San José city tax is commonly split 50‑50 between buyer and seller. Measure E follows the same “by agreement” approach. Your purchase agreement and escrow instructions should spell out the split. Recorder transfer tax overview
Illustrative cost examples
These examples use official rates and simple rounding. They are for illustration only. Always confirm final figures with your escrow officer and the Clerk‑Recorder.
Example A: $1,800,000 sale in San José
- County tax: $1.10 per $1,000 → 1,800 × $1.10 = $1,980
- City tax: $3.30 per $1,000 → 1,800 × $3.30 = $5,940
- Measure E: Not triggered
- Estimated total: $7,920
Example B: $3,500,000 sale in San José (Measure E at 0.75%)
- County tax: 3,500 × $1.10 = $3,850
- City tax: 3,500 × $3.30 = $11,550
- Measure E: 0.75% × $3,500,000 = $26,250
- Estimated total: $41,650
For how these amounts appear on recorded documents, see the Recorder’s guidance. Recorder real estate recording
Exemptions and special cases
Some transfers are exempt under state law and the San José municipal code. Common examples include certain gifts, inheritances, transfers between spouses, and some bankruptcy or trust-related changes. The City has also discussed limited refund mechanisms for qualifying nonprofits under specific programs. Review the City and County materials for your exact situation. City Measure E page
Entity transfers can be taxable. If changing ownership interests in an LLC, corporation, or partnership results in a change in ownership of the real property, transfer tax and Measure E may apply. Measure E ballot summary
When and where you pay
The Santa Clara County Clerk‑Recorder collects the county tax, San José’s city tax, and Measure E at the time the deed is recorded. The Recorder requires the tax amount or a valid claim of exemption before recording. Recorder real estate recording
Planning tips for buyers and sellers
- Confirm the property’s city. The San José city tax and Measure E only apply inside San José city limits.
- Estimate early. Use the rates above and check whether you meet the Measure E threshold that applies to your closing date. County Measure E information
- Negotiate who pays. Spell out the split for the county tax, the city tax, and any Measure E amount in your purchase agreement.
- Coordinate with escrow. Have your escrow officer verify tax lines and exemptions before documents go to recording.
- For higher price points, model the totals. Measure E changes the math on net proceeds and offer comparisons.
If you want help estimating your net sheet and positioning your sale or purchase around these costs, reach out to Anuja Krishnan for clear guidance and a smooth closing experience.
FAQs
Do San José transfer taxes apply to both residential and commercial sales?
- Yes. The county tax, the city conveyance tax, and Measure E apply to transfers of real property when statutory requirements are met. Measure E ballot summary
For a San José home sale, who typically pays the transfer taxes?
- Local custom often shows the county tax as a seller cost and the city tax split 50‑50, but every deal is negotiable and should be specified in the contract and escrow instructions. Recorder transfer tax overview
Will Measure E affect my San José sale in 2025?
- It applies if your price meets or exceeds the current threshold, which is $2,300,000 effective July 1, 2025. Confirm the threshold that applies to your closing date. County Measure E information
How are LLC or partnership transfers treated under San José rules?
- If changes in ownership interests cause a change in ownership of the real property, transfer taxes can apply to the transaction. Measure E ballot summary
Where can I verify current San José transfer tax rates and forms?
- Check the Santa Clara County Clerk‑Recorder for rates and recording requirements and the City’s Measure E page for threshold and tiers. Recorder real estate recording | City Measure E page
