Property Transfer Tax
The City of Berkeley’s transfer tax rate is 1.5% for properties up to $1.7M and 2.5% for properties over $1.7M.
The City of Berkeley charges a transfer tax any time real estate changes ownership. Berkeley’s transfer tax rate is 1.5% for properties up to $1.7M and 2.5% for properties over $1.7M. For example, a property that sells for $1.7M will owe $25,500 in transfer tax to the City of Berkeley. A property that sells for $2M will owe $50,000.
In November 2024, City voters approved Measure W, which read:
"Shall the measure effective January 1, 2027, setting the existing general tax on transfers of real property at 2.5% of a property's value for properties valued $1.6M or higher, and increasing the rate from 2.5% to 3% for properties valued $1.9M or higher and from 3% to 3.5% for properties valued $3.0M or higher, adjusted annually for increases in value...be adopted?"
At the time of passage, these thresholds were equivalent to the sales transactions at the 60th percentile (2.5% tax rate), 80th percentile (3% tax rate) and 95th percentile (3.5% tax rate) of transactions during the 12 months preceding September 1 of the previous year, rounded to the nearest $100,000 increment. These threshold amounts will be recalculated prior to the effective date of the additional rate tiers.
The City’s transfer tax is in addition to the transfer tax charged by Alameda County. The City’s transfer tax helps fund general municipal services and could be used for homeless shelters, navigation centers, mental health support, rehousing, rental subsidies, and other services for people experiencing homelessness.
Sellers or buyers (owners) of residential or mixed-use buildings with at least two residential units may qualify for a real estate transfer tax rebate by completing voluntary seismic upgrades or permanent home-hardening upgrades.
The total rebate for any combination of voluntary seismic upgrades and home-hardening improvements is up to 1/3 of the base 1.5% transfer tax. Learn more about the City's Seismic Retrofit Rebate or Home Hardening Rebate. Or attend a County of Alameda property transfer clinic to learn more about the transfer tax.