Buying or selling a home in Santa Monica

Key points

Lowest tier: City rule: the transfer tax is $3 per $1,000 of price or value when the price or value is under $5,000,000.

Middle tier: City rule: the transfer tax is $6 per $1,000 for a price or value of $5,000,000 or more but under $8,000,000.

Top tier: City rule: the transfer tax is $56 per $1,000 for a price or value of $8,000,000 or more.

Threshold and payer: City rule: the tax applies only above $100; anyone who makes, signs or issues the taxed document, or benefits from it, is fully liable.

Disclosure statement: State law: sellers of single-family residential property must give the buyer a Transfer Disclosure Statement, with exemptions such as court-ordered and foreclosure sales.

Property tax: State law: the general property tax is at most 1% of full cash value plus voter-approved debt; base value rises at most 2% yearly.

Transfer tax

Santa Monica code What Santa Monica's code adds
City transfer tax	Yes. Since March 1, 2023, the city taxes each deed that transfers real property sold in the city. § 6.96.020 · code text Effective March 1, 2023, there is hereby imposed on each deed, instrument, or writing by which any lands, tenements, or other realty sold within the City shall be granted, assigned, transferred or otherwise conveyed
Rate	$3 for each $1,000 of price or property value, or part of $1,000. Applies: City transfer tax, first tier: price or value under $5,000,000. § 6.96.015 · code text shall mean the tax rate of three dollars for each one thousand dollars of consideration or property value, or fractional part thereof $6 for each $1,000 of price or property value, or part of $1,000. Applies: City transfer tax, second tier: price or value of $5,000,000 or more but under $8,000,000. § 6.96.015 · code text shall mean the tax rate of six dollars for each one thousand dollars of consideration or property value, or fractional part thereof $56 for each $1,000 of price or property value, or part of $1,000. Applies: City transfer tax, third tier: price or value of $8,000,000 or more. § 6.96.015 · code text shall mean the tax rate of fifty-six dollars for each one thousand dollars of consideration or property value, or fractional part thereof
Rate per $1,000	$3 per $1,000 of price or value. Applies: City transfer tax, first tier: price or value under $5,000,000. § 6.96.015 · code text shall mean the tax rate of three dollars for each one thousand dollars of consideration or property value, or fractional part thereof $6 per $1,000 of price or value. Applies: City transfer tax, second tier: price or value of $5,000,000 or more but under $8,000,000. § 6.96.015 · code text shall mean the tax rate of six dollars for each one thousand dollars of consideration or property value, or fractional part thereof $56 per $1,000 of price or value. Applies: City transfer tax, third tier: price or value of $8,000,000 or more. § 6.96.015 · code text shall mean the tax rate of fifty-six dollars for each one thousand dollars of consideration or property value, or fractional part thereof
Price threshold	The tax applies only above $100. Applies: The tax applies only when the value transferred, not counting liens or encumbrances that remain at sale, is more than $100. § 6.96.020 · code text when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale) exceeds one hundred dollars, a tax at the rates set forth below:
Rate depends on price	Yes. The rate rises with the price, in 3 tiers. Applies: Since March 1, 2023: First Tier under $5,000,000; Second Tier $5,000,000 to under $8,000,000; Third Tier $8,000,000 or more. Rates set elsewhere. § 6.96.020 · code text (a) For sales or transfers when the consideration or value of the interest or property conveyed is less than five million dollars, the First Tier Tax Rate;
Who pays	Anyone who makes, signs or issues the taxed document, or benefits from it. Each is fully liable for the tax. § 6.96.030 · code text The obligation to pay any tax imposed pursuant to Section 6.96.020 shall be a joint and several liability of the taxpayers identified in this Section.

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 →

Frequently asked questions

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

City rule: the transfer tax is $3 per $1,000 of price or value when the price or value is under $5,000,000. City rule: the transfer tax is $6 per $1,000 for a price or value of $5,000,000 or more but under $8,000,000. City rule: the transfer tax is $56 per $1,000 for a price or value of $8,000,000 or more. City rule: the tax applies only above $100; anyone who makes, signs or issues the taxed document, or benefits from it, is fully liable.