If you are putting your San Franciscan home on the market, you should be aware that the sale will be subject to a transfer tax. All counties in California impose a tax of at least .00110% on the purchase price of a home, but San Francisco –– like other cities –– has increased this tax rate to generate additional local revenue. In fact, the Board of Supervisors habitually threatens to raise the transfer tax even further, so we may see higher rates in the near future. However, as it stands now, the City imposes a tiered tax as follows:

• For properties selling from $100.01 to $250,000.00, the tax is $5.00 for each $1,000 of property value or portion thereof;
  
  
• For properties selling from $250,000.01 to $999,999.99, the tax is $6.80 for each $1,000 of property value or portion thereof; and
  
  
• For properties selling for $1 million or more, the tax is $7.50 for each $1,000 of property value or portion thereof.

San Francisco's transfer tax ordinance, like those in most other cities and counties, does not specify whether the buyer or the seller must pay the tax. But in San Francisco, the custom prevails that the seller is responsible for the tax. It would be wise to remember to talk to a qualified tax attorney for full details regarding your obligations.