The cost of real estate city transfer tax and documentary transfer tax in Los Angeles, California, can vary depending on various factors, such as the value of the property and location.
Real estate city transfer tax is a tax the city government imposes on transferring real estate property. This tax rate varies depending on the city and the value of the property being transferred. In Los Angeles, the rate of the city transfer tax is .0045 for every $1,000 of the property’s sale price. For example, if you sell a home within the City of Los Angeles, a home seller will pay a City Transfer tax and a documentary transfer tax. For instance, there is no City Transfer Tax fee if you sell a home in the City of Glendale or unincorporated areas of LA County.
On the other hand, the documentary transfer tax is a state tax imposed on the transfer of real estate property. This tax rate also varies depending on the value of the property being transferred. In California, the rate of the documentary transfer tax is $1.10 for every $1,000 of the property’s sale price.
Here is an example:
Property Location Sunland, California located within the City of Los Angeles
Sale Price $800,000
City Transfer Tax Fee: $3600.00 Documentary Transfer Tax: $880.00
Same Sale price in Glendale, California. The seller will only be charged a Documentary transfer fee of $880.00
The main difference between real estate city transfer tax and documentary transfer tax is the government entity that imposes the tax and the rate at which the tax is charged. The city government imposes the city transfer tax, while the state government imposes the documentary transfer tax. The rate of the city transfer tax is generally higher than the rate of the documentary transfer tax.