Palo Alto · Buying & selling
Buying or selling a home in Palo Alto
Palo Alto has its own transfer tax on property sales; seller disclosures and property tax follow state law. Under state law, sellers of single-family homes give buyers a Transfer Disclosure Statement, and a purchase resets the assessed value.
Key points
- Transfer tax: The city tax is $3.30 per $1,000 ($1.65 per $500) on sales over $100, owed by whoever signs the document or benefits from it.
- Seller disclosures: State law: sellers of single-family homes owe buyers a Transfer Disclosure Statement, with listed exemptions such as foreclosure and court-ordered sales.
- Property tax: State law: the general tax is at most 1% of value plus voter-approved debt; value resets on purchase, then rises at most 2% yearly.
Each rule below is marked Palo Alto code or CA state law and links to the section it comes from (checked October 2026). General information, not legal advice.
Transfer tax
Palo Alto code The city tax is $3.30 per $1,000 ($1.65 per $500) on sales over $100, owed by whoever signs the document or benefits from it.
All 5 Palo Alto rules on transfer tax, with the code text and the state law underneath →
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 →
Utility users tax
| Tax on electricity |
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| Tax on water, phone or cable |
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Who this affects
Frequently asked questions
Does Palo Alto charge a utility users tax?
Palo Alto's code: The utility tax is 5% of electricity charges. (§ 2.35.060); The utility tax is 4.75% of telephone service charges. (§ 2.35.090).
General information, not legal advice.
Ask about a specific Palo Alto property
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