Transfer taxes are paid when a property is passed from one owner to the next. 

Whether the buyer, seller or both parties pay the county and/or city transfer taxes is part of the negotiation process. However, each city has its own customary approach. For example, in Redondo Beach, the seller pays county transfer tax and the buyer and seller split the city transfer tax. This customary approach is not mandatory and every buyer and seller will need to consider how they plan to address these taxes. 

Note: see the table below for example of local city taxes. These numbers are per $1,000 of purchase price.

The property tax rate in Los Angeles’ South Bay is approximately 1.1%.

The tax rate throughout California is 1%. But, cities add their own items to the tax bill such as special assessments and bonds. For Manhattan Beach, the average tax rate is approximately 1.1%. However, when talking to our clients, we’ll often round the number up to 1.25% so that we don’t have any surprises once we’re in escrow—it’s always better to get money back rather than having to come up with more cash than you anticipated.

For more information on property taxes, check out California tax Data.com

Last updated on January 24, 2012 by Blake Roberts