Buying or selling a home in Burlingame and wondering how transfer taxes affect your bottom line? You are not alone.
Transfer tax is one of the most common closing-cost questions we hear from buyers and sellers in Burlingame. Who pays it? How much is it? And how do city and county rules work together in San Mateo County?
This guide breaks it all down so you can plan with confidence. You will learn what transfer tax is, how it is calculated, what is customary locally, and the simple steps to confirm the exact amount for your transaction.
Transfer tax explained
A transfer tax is a one-time tax charged when ownership of real property changes and the deed is recorded. It is separate from property taxes and only applies at the time of sale or transfer.
The tax is generally calculated based on the sale price or other consideration listed on the deed. You will see it as a distinct line item on your closing statement, often labeled “Documentary Transfer Tax” or “Conveyance Tax.”
Some transfers may qualify for exemptions under state or local law, but exemptions vary and must be verified for each specific situation.
How It works at Closing
Here is what typically happens behind the scenes:
- Your title and escrow company calculates the transfer tax using the final sale price and applicable rate or rates
- The tax is paid at or before recording of the deed
- The county records the deed and the amount of tax paid
- If an exemption applies, supporting documentation must be provided at recording
County and city layers in Burlingame
California law allows both counties and cities to impose transfer taxes.
In San Mateo County:
- The county may charge a documentary transfer tax
- Cities may also impose a municipal transfer or conveyance tax
Whether a city-level transfer tax applies in Burlingame, the current rate, and any exemptions must always be confirmed directly with the City of Burlingame and the county recorder. Rates and rules can change, so verification is essential before finalizing your budget.
Who usually pays in the Bay Area
Who pays transfer tax depends on local custom and negotiation.
In many California transactions, the seller pays the documentary transfer tax. However, customs can vary by city and over time, and the final allocation is determined by the purchase agreement.
In Burlingame, always confirm:
- What is customary locally
- What your specific contract states
Your escrow officer can clarify this early in the process.
How to estimate your transfer tax
Transfer tax is a simple calculation once you know the applicable rate(s).
- Formula: Transfer tax = Sale price × Rate
- If the rate is expressed as dollars per $1,000: Transfer tax = (Sale price ÷ 1,000) × Rate
- If both county and city taxes apply, calculate each separately and add them together.
Illustrations only
These examples show the math format. They do not use Burlingame-specific rates and are for illustration only.
- Example 1
Sale price: $1,500,000
Assumed rate: $1.10 per $1,000
Transfer tax: $1,650
- Example 2
Sale price: $2,000,000
County rate: $1.10 per $1,000
City rate: $2.00 per $1,000
Total transfer tax: $6,200
To get an exact number for a Burlingame property, you must plug in current local rates from San Mateo County and any Burlingame municipal ordinance.
What shows on your closing statement
Transfer tax typically appears as:
- Documentary Transfer Tax
- City Conveyance or Municipal Transfer Tax
If both apply, they may be listed separately. Recording fees and other charges appear as separate line items.
Your escrow officer will provide a preliminary closing statement that itemizes all costs before closing.
Other closing costs to expect
Beyond transfer tax, buyers and sellers should budget for additional line items that commonly appear in Peninsula closings. Local custom can vary, and many items are negotiable.
- Real estate commission. Typically paid by the seller and split per the listing agreement.
- Title and escrow. In many Bay Area sales, sellers pay for the owner’s title policy; buyers pay for the lender’s title policy. Escrow fees are often split about 50-50. Verify your local practice.
- Recording fees. Modest fixed county fees for recording documents, separate from transfer tax.
- Prorations and property-tax items. Current property taxes are prorated to the closing date. Buyers should plan for possible supplemental property-tax bills after reassessment.
- Loan-related charges. Buyers typically pay lender fees, appraisal, credit report, underwriting, and the lender’s title policy.
- Inspections and repairs. Buyers often pay inspection costs. Sellers pay repairs agreed to in the contract or provide credits.
- HOA fees and estoppels. HOA transfer fees and prorated dues may apply. Sellers often cover estoppel or transfer fees, while dues are prorated.
- Miscellaneous courier, notary, and document-prep fees. Typically small fixed amounts.
Burlingame verification checklist
Because local rules and customs can change, use this quick checklist for a Burlingame sale or purchase:
- Confirm whether the City of Burlingame has a municipal transfer or conveyance tax and its current rate and exemptions.
- Confirm the San Mateo County documentary transfer tax rate and the county’s current recording fee schedule.
- Ask your title or escrow company for a preliminary closing statement that itemizes transfer taxes and indicates who is the customary payer locally.
- Ask whether any exemptions or exclusions may apply to your transaction, such as intra-family transfers, certain trust-related transfers, government entity transfers, or foreclosure-related deeds.
- Verify who pays for the owner’s and lender’s title policies, escrow fees, and how property-tax prorations will be handled.
Tips for Burlingame sellers
- Budget for transfer tax unless your contract states otherwise
- Gather documentation early if an exemption may apply
- Request a net sheet early to understand your true proceeds
Tips for Burlingame buyers
- Confirm transfer tax responsibility in your offer
- Budget for supplemental property tax bills after reassessment
- Review your closing statement carefully before signing
Transfer tax vs. property tax
These are often confused, but they are very different:
- Transfer tax is paid once at closing when ownership changes
- Property tax is an ongoing annual tax based on assessed value
A sale can trigger reassessment, which may lead to supplemental property tax bills for buyers after closing. Those bills do not affect transfer tax.
When exemptions may apply
Certain transfers may be exempt under state or local rules. Common examples include some transfers between spouses or family members, transfers to government entities, and certain trust or foreclosure-related transfers. Each exemption has specific criteria and documentation requirements. Confirm with the county recorder and your title company for your exact scenario.
A smooth path to accurate numbers
If you remember one thing, remember this: the exact transfer tax for a Burlingame property depends on current county and city rules and your final sale price. The exact transfer tax for a Burlingame property depends on:
- Current county and city rules
- Your final sale price
- Any applicable exemptions
The fastest way to get accurate numbers is to request a preliminary closing statement from your escrow officer.
If you want a clear, step-by-step estimate tied to your property and timeline, reach out. Mary Murphy can coordinate with your escrow officer, review customary local practices, and give you a clean net sheet so you can plan with confidence.
FAQs
What is a transfer tax on a Burlingame home sale?
- It is a one-time tax on the transfer of real property, calculated from the sale price and collected when the deed is recorded. It is separate from ongoing property taxes.
Who usually pays the Burlingame transfer tax in San Mateo County?
- It depends on local custom and your contract. In many California transactions, the seller pays, but allocation is negotiable and should be confirmed with your escrow officer.
How do I calculate transfer tax for a Burlingame property?
- Use the formula: (Sale price ÷ 1,000) × the applicable rate(s). If both county and city taxes apply, compute each separately and add them. Verify current rates locally.
Is transfer tax the same as property tax in San Mateo County?
- No. Transfer tax is paid once at the time of recording. Property tax is an annual obligation that can change after reassessment and may trigger supplemental bills for the buyer.
Are there transfer tax exemptions for Burlingame transactions?
- Some transfers, such as certain intra-family, trust, government, or foreclosure-related transfers, may be exempt. Eligibility and documentation vary, so confirm with the county recorder and escrow.
When is Burlingame transfer tax paid during closing?
- It is paid at or before the recording of the deed, and it appears as a line item on your closing statement.
Which documents show transfer tax on a Burlingame closing?
- Your preliminary closing statement and final Closing Disclosure or settlement statement will list documentary transfer tax, along with any city tax and recording fees.
If you would like a simple, no-stress estimate tailored to your home and timeline, reach out to Mary Murphy. She will work with escrow, walk through local norms, and put everything into a clear net sheet with no surprises.
Mary Murphy
650-773-4999
[email protected] | REALTOR® | DRE# 00675838