Hillsborough · Buying & selling

Buying or selling a home in Hillsborough

Hillsborough levies its own transfer tax on real property sales. Seller disclosures and property tax follow state law, which sets the disclosure statement and caps the general tax rate.

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Key points

Transfer tax: The city transfer tax is $0.55 per $1,000 on sales over $100, not counting remaining liens, paid by whoever makes or signs the document.
Seller disclosures: State law requires sellers of single-family homes to give buyers a Transfer Disclosure Statement, with some exemptions such as foreclosure sales.
Property tax: State law limits general property tax to 1% of full cash value plus voter-approved debt; base year value rises at most 2% a year.

Each rule below is marked Hillsborough code or CA state law and links to the section it comes from (checked October 2026). General information, not legal advice.

Transfer tax

Hillsborough code What Hillsborough's code adds
City transfer tax	Yes. The town taxes each deed or document that transfers real property sold in the town. § 3.20.020 · code text There is imposed on each deed, instrument or writing by which any lands, tenements, or other realty sold within the town shall be granted, assigned, transferred or otherwise conveyed
Rate	$0.275 for each $500 of value, or part of $500. § 3.20.020 · code text a tax at the rate of twenty-seven and one-half cents for each five hundred dollars or fractional part thereof.
Rate per $1,000	$0.55 per $1,000 of value. § 3.20.020 · code text a tax at the rate of twenty-seven and one-half cents for each five hundred dollars or fractional part thereof.
Price threshold	The tax applies only when the price or value is more than $100. Applies: Liens or encumbrances that remain on the property at the time of sale are not counted in the value. § 3.20.020 · code text when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrances remaining thereon at the time of sale) exceeds one hundred dollars
Rate depends on price	No. The rate does not change with the sale price. § 3.20.020 · code text a tax at the rate of twenty-seven and one-half cents for each five hundred dollars or fractional part thereof.
Who pays	Any person who makes, signs or issues the taxed document, or for whose benefit it is made. § 3.20.070 · code text Any tax imposed pursuant to Section 3.20.020 shall be paid by any person who makes, signs or issues any document or instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

CA state law Underneath, California law still applies. County documentary transfer tax: A county may tax a sale over $100 at $0.55 for each $500 of value ($1.10 per $1,000), not counting liens that remain on the property (Rev. & Tax. Code § 11911(a)). City share of the tax: A city may impose half the county rate ($0.55 per $1,000); the county then credits the city tax against its own, so the combined standard rate stays $1.10 per $1,000 (Rev. & Tax. Code § 11931). California rules for buying and selling — the full state rule →

Seller disclosures

CA state law California law sets this statewide. Transfer Disclosure Statement (TDS) — who must give it: Sellers of single-family residential property must give the buyer a Real Estate Transfer Disclosure Statement (sale, exchange, installment contract, lease-option or ground lease with improvements) (Civ. Code §§ 1102(a), 1102.2). Natural Hazard Disclosure Statement (NHD): Sellers must disclose if the property is in a special flood hazard area, dam inundation area, very high fire hazard severity zone, earthquake fault zone, seismic hazard zone, or wildland fire area (Civ. Code § 1103(c)). California seller disclosure rules — the full state rule →

Property tax after you buy

CA state law California law sets this statewide. 1% property tax limit (Prop 13): The general property tax on real property may not exceed 1% of its full cash value; voter-approved bond debt is levied on top (Cal. Const. art. XIII A, § 1(a), (b)). 2% annual cap on assessed value: The base year value rises each year by the California CPI change, but never more than 2% (Rev. & Tax. Code § 51(a)(1)(D)). California property tax rules — the full state rule →

Sewer lateral inspection

Hillsborough code What Hillsborough's code adds
How long a certificate lasts	20 years from the date of installation. Applies: Applies to new or entirely replaced laterals. § 13.33.080 · code text New, or entirely replaced, laterals—Twenty years from the date of installation. 10 years. Applies: Applies to repaired laterals, or existing laterals that pass an approved pressure test. § 13.33.080 · code text Repaired laterals, or existing laterals that pass an approved pressure test—Ten years. 20 years from the documented date of installation. Applies: Applies when the city engineer accepts proof the upper lateral was newly installed or fully replaced to town standards in the past 5 years. § 13.33.080 · code text If evidence satisfactory to the city engineer is provided that documents that the upper lateral had been newly installed or fully replaced in accordance with town standards within the preceding five years, a compliance certificate will be provided to the property owner with a term of twenty years from the documented date of installation.
Fee or permit	The town will waive certain fees. Applies: Applies when homeowners coordinate their lateral work with the town's public sewer main rehabilitation. § 13.33.040 · code text The town will waive certain fees, and the homeowners will be offered the opportunity to coordinate with the town's work, saving significant costs.
When an inspection is required	The town must inspect and approve the work, visually and by video; final approval needs a pressure test. Applies: Applies when a private sewer lateral is repaired or rehabilitated. § 13.33.050 · code text When private sewer laterals are repaired or rehabilitated, they must be inspected and approved by the town. Private laterals are examined when the town rehabilitates the public sewer main they connect to. Applies: Unless exempt under a valid compliance certificate. § 13.33.040 · code text When the town rehabilitates a segment of public sewer main, the private laterals connected to it will be examined at the same time unless they are specifically exempted as provided in Section 13.33.080 below. Provide proof of compliance, or a pressure test observed and approved by the town's inspector. Applies: Applies when an owner wants a compliance certificate while the town is not rehabilitating the sewer main serving the property. § 13.33.080 · code text If a homeowner wishes to obtain a compliance certificate at any time other than when the town is rehabilitating the public sewer main serving the property, the owner shall provide documentation demonstrating compliance or shall arrange for a pressure test to be conducted; the pressure test must be observed and approved by the town's inspector.
Owner's responsibility	The property owner must renew the compliance certificate before it expires. § 13.33.080 · code text Once a compliance certificate is issued to the property owner it shall be the property owner's responsibility to renew the certificate before expiration of its term. The property owner must correct illegal sources of inflow. Applies: Applies when illegal inflow sources are found on the property. § 13.33.040 · code text If illegal sources of inflow are observed, the property owner shall be required to correct the conditions. Owners with defective upper laterals are encouraged to rehabilitate them. Applies: Applies when deficiencies are found in upper laterals during public sewer main rehabilitation. § 13.33.040 · code text At that time, the town will evaluate the upper laterals, and if deficiencies are identified the owners of properties with defective laterals will be encouraged to rehabilitate them.

Who this affects

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Frequently asked questions

What is the transfer tax when you sell a home in Hillsborough?

The city transfer tax is $0.55 per $1,000 on sales over $100, not counting remaining liens, paid by whoever makes or signs the document.

Does Hillsborough require a sewer lateral inspection when you sell a home?

Hillsborough's code: 20 years from the date of installation. (Applies to new or entirely replaced laterals.) (§ 13.33.080); 10 years. (Applies to repaired laterals, or existing laterals that pass an approved pressure test.) (§ 13.33.080).

General information, not legal advice.

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Hillsborough Municipal Code — full text

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Hillsborough overview