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Palo Alto · Buying & selling

Transfer tax in Palo Alto

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.

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.

Each rule below links to the section of the Palo Alto Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Palo Alto's code says

Palo Alto code What Palo Alto's code adds
City transfer tax
  • Yes. The city taxes each deed or document that transfers land or other real property sold in the city.
    § 2.34.020 · code text
    There is hereby imposed on each deed instrument or writing ("instrument") by which any lands, interests in lands, tenements or other realty ("realty") sold within the city of Palo Alto shall be granted, assigned, transferred or otherwise conveyed
Rate
  • $1.65 for each $500 of the price, or part of $500.
    Applies: Applies only when the price is more than $100.
    § 2.34.020 · code text
    a tax at the rate of $1.65 for each $500.00, or fractional part thereof, of the value of the consideration.
Rate per $1,000
  • $3.30 per $1,000 of the price.
    Applies: Applies only when the price is more than $100.
    § 2.34.020 · code text
    a tax at the rate of $1.65 for each $500.00, or fractional part thereof, of the value of the consideration.
Price threshold
  • The tax applies only when the price is more than $100.
    § 2.34.020 · code text
    when the value of the consideration exceeds $100.00
Who pays
  • Any person who makes, signs or issues the taxed document, or for whose benefit it is made.
    § 2.34.030 · code text
    Any tax imposed pursuant to Section 2.34.020, shall be paid by any person who makes, signs or issues any instrument subject to the tax, or for whose use or benefit the same is made, signed or issued.

The California rule underneath

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 →

Who this affects

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Frequently asked questions

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

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.

General information, not legal advice.

Ask about a specific Palo Alto property

Ask GoCodebook how Palo Alto's transfer tax rules apply to your situation and get an answer that cites the section.

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