San Jose Transfer Tax: How Much It Is and Who Pays

By Zaid Hanna, Broker, Real Estate 38 · CA DRE #01421581 · Published November 2026

San Jose transfer tax comes to $4.40 per $1,000 of the sale price: $1.10 to Santa Clara County and $3.30 to the City of San Jose. Sales over $2.3 million also pay Measure E, a city tax of 0.75% to 1.5% on the full price. On a $1,500,000 home, that's $6,600. On a $2,400,000 home, it's $28,560. Who pays comes down to custom and your purchase contract. Here's how each tax works for buyers and sellers.

How Much Is the Transfer Tax in San Jose?

Three separate taxes can apply when a San Jose home changes hands. All of them are collected when the deed is recorded. These are the rates as of November 2026, from the Santa Clara County Clerk-Recorder:

• County documentary transfer tax: $0.55 per $500, which is $1.10 per $1,000.
• City of San Jose conveyance tax: $1.65 per $500, which is $3.30 per $1,000.
• Measure E real property transfer tax: 0.75%, 1% or 1.5%, and only on sales over $2.3 million.

The first two apply at every price. Measure E is the one that changes the math on higher-priced homes.

How Does Measure E Work in San Jose?

Measure E is a city tax that San Jose voters approved on March 3, 2020. The City of San Jose says it funds general city services, including affordable housing and homelessness programs. It started at $2 million. The threshold adjusts for inflation every five years, and it rose to $2.3 million on July 1, 2025.

The county's Measure E schedule uses three tiers:

• $2,300,000.01 to $5,000,000: 0.75%
• $5,000,000.01 to $10,000,000: 1%
• Over $10,000,000: 1.5%

The rate applies to the full price, not just the part above the line. The county's own example is an $11,000,000 sale taxed at 1.5% on the entire amount, for $165,000.

Why Does the $2.3 Million Line Matter?

Because the rate covers the full price, the tax jumps at each line. A sale at exactly $2,300,000 owes no Measure E. A sale one dollar higher owes about $17,250. The same thing happens at $5,000,000, where Measure E goes from $37,500 to about $50,000.

So a slightly higher price near a line can leave whoever pays the tax with less. When an offer lands just over a line, I run the numbers both ways before we respond.

What Does the Tax Look Like at Different Prices?

Here are the three taxes added together at common price points:

• $1,500,000: $1,650 county + $4,950 city = $6,600
• $2,300,000: $2,530 county + $7,590 city = $10,120
• $2,400,000: $2,640 county + $7,920 city + $18,000 Measure E = $28,560
• $5,000,000: $5,500 county + $16,500 city + $37,500 Measure E = $59,500
• $5,100,000: $5,610 county + $16,830 city + $51,000 Measure E = $73,440

Who Pays the Transfer Tax in San Jose?

By custom, the seller pays the county tax and the city tax is split between buyer and seller, according to Fidelity National Title's 2026 guide. That's custom, not law, and either side can negotiate it.

Measure E needs extra attention. Under San Jose Municipal Code section 4.59.030, the person making the transfer and the person receiving it are jointly and severally liable. That means the city can look to either side if it goes unpaid, so the contract should say exactly who pays it. For the wider picture on contracts and taxes, see my San Jose contracts, disclosures and tax guide.

What Should San Jose Sellers Do About Transfer Tax?

Treat it as part of your net proceeds from the start, not a surprise at closing.

• Look at your list price against the lines. If you're pricing near $2.3 million or $5 million, compare your net on both sides of the line.
• Compare offers on net, not headline price. An offer slightly over a line can net less than a lower one.
• Check who pays in every offer. Buyers sometimes propose a different split.

My breakdown of seller fees and commissions in San Jose covers the other costs, and my San Jose home selling process shows how we set a price.

What Should San Jose Buyers Do About Transfer Tax?

Add your share to your cash to close before you write the offer. On a home under $2.3 million, half of the city tax is a small part of your closing costs. Over that line, any share of Measure E can be a real number, so settle it before you remove contingencies.

My guide to San Jose closing costs for buyers shows what else to budget. I represent buyers as well as sellers, and you can see how I work on my San Jose home buying page.

Does Every San Jose Address Pay the City Tax?

No. The city tax and Measure E apply to property located in the City of San Jose. Some homes with a San Jose mailing address sit in unincorporated county islands, so I confirm the jurisdiction on the preliminary title report and not from the address alone.

Some transfers are also exempt. The municipal code lists exemptions for Measure E that include court-ordered foreclosure transfers, transfers made only to secure a debt, and certain property settlements in a divorce. Your escrow officer or tax advisor can confirm whether one applies. This guide isn't tax or legal advice.

How I Help With Transfer Tax in San Jose

Since 2004, I've helped with more than 1,800 home sales across San Jose and the South Bay, for buyers and sellers. On every deal, my team and I estimate these taxes early, spell out who pays in the contract, and check the numbers against the final escrow statement. Call me if you're near one of the Measure E lines and want to see your net both ways.

Frequently Asked Questions

What is the transfer tax rate in San Jose?

San Jose transfer tax is $4.40 per $1,000 of the sale price, made up of $1.10 to Santa Clara County and $3.30 to the City of San Jose. Sales over $2.3 million also pay Measure E at 0.75%, 1% or 1.5% of the full price, depending on the amount. These are the rates as of November 2026.

Who pays transfer tax in San Jose, the buyer or the seller?

By custom, the seller pays the county tax and the buyer and seller split the city tax. That's custom rather than law, so it can be negotiated. Measure E should be spelled out in the purchase contract, because the municipal code makes both the seller and the buyer jointly and severally liable for it.

What is the Measure E transfer tax threshold in San Jose?

The Measure E threshold is $2,300,000, effective July 1, 2025. It started at $2,000,000 in 2020 and adjusts for inflation every five years. A sale at or below $2,300,000 owes no Measure E. A sale above it pays at least 0.75% on the full price, which is about $17,250 at the line.

How much is transfer tax on a $2 million home in San Jose?

On a $2,000,000 home in San Jose, transfer tax is $8,800. That's $2,200 to Santa Clara County and $6,600 to the City of San Jose. Measure E doesn't apply, because the price is under the $2,300,000 threshold. At $2,400,000, Measure E adds $18,000 and the total rises to $28,560.

Does Measure E apply to homes outside San Jose city limits?

No. Measure E and the San Jose city tax apply only to property located in the City of San Jose. A home in an unincorporated county pocket can have a San Jose mailing address and still fall outside the city. The county tax of $1.10 per $1,000 applies either way, unless an exemption is cited.

Zaid Hanna
408-515-1613
www.re38.com