San Jose is located in Santa Clara County, California, and has a two-tier transfer tax structure. All real estate transfers are subject to the Santa Clara County Documentary Transfer Tax at $1.10 per $1,000 (0.11%). Additionally, properties selling above $2.3M are subject to the City's Measure E tax: 0.75% for sales between $2.3M–$5M, 1.0% for $5M–$10M, and 1.5% for sales over $10M. Measure E thresholds are adjusted annually.
Both the Santa Clara County Documentary Transfer Tax and the San Jose Measure E city tax are customarily paid by the seller. For high-value transactions, the Measure E surcharge can be substantial. The obligation can be negotiated, and the purchase agreement should clearly specify who bears each tax component. Buyers and sellers should confirm responsibilities through their escrow officer before closing.
Certain San Jose real estate transactions may qualify for exemptions from the transfer taxes. Common exemptions include interspousal transfers, domestic partner transfers, gifts without monetary consideration, and transfers to or from revocable living trusts. Measure E may have additional exemption criteria. Consult a local real estate attorney or title company to verify eligibility before your transaction closes.