By Kat Bedbury | The Bedbury Group | Updated November 5, 2026

If you're selling a home in San Mateo County, there's one closing cost you may not have thought much about: real estate transfer tax.

And depending on where your property is located, it could make a significant difference in how much money you walk away with.

Here's something that surprises many homeowners. Selling a $2 million home in Redwood City or San Carlos can involve $10,000 less in transfer taxes than selling a similarly priced home in the City of San Mateo.

Same county. Same sales price. Very different closing costs.

Whether you're buying or selling in Redwood City, San Carlos, Belmont, Burlingame, Menlo Park, Hillsborough, or San Mateo, understanding the local transfer tax is an important part of planning your next move.

Here's what you need to know.

What Is the Real Estate Transfer Tax in San Mateo County?

A documentary transfer tax is a one-time tax generally paid when ownership of real estate changes hands and the deed is recorded.

San Mateo County's standard documentary transfer tax is $1.10 per $1,000 of taxable property value, which equals 0.11%.

For a typical $2 million home sale, that works out to $2,200.

But there's an important distinction. Some cities have their own transfer tax ordinances, and not every city handles them the same way.

In many Peninsula communities, the city and county share the tax revenue. In the City of San Mateo, an additional city tax applies.

This is why looking at the county rate alone doesn't always tell the full story.

San Mateo County Transfer Tax Rates by City

Here's how the standard transfer tax generally compares across some of the Peninsula communities we serve.

CityCombined Transfer Tax RateTax on a $2M SaleRedwood City$1.10 per $1,000$2,200San Carlos$1.10 per $1,000$2,200Belmont$1.10 per $1,000$2,200Burlingame$1.10 per $1,000$2,200Menlo Park$1.10 per $1,000$2,200Hillsborough$1.10 per $1,000$2,200City of San Mateo$6.10 per $1,000$12,200Portola Valley$1.10 per $1,000*$2,200*

These are illustrative estimates for ordinary taxable sales, using the rates in effect as of November 5, 2026. Special exemptions, the taxable value, and individual circumstances may affect the final amount. Portola Valley's November 2026 Measure N could substantially change its rate once election results are certified and the new ordinance takes effect.

The biggest difference to pay attention to is the City of San Mateo.

Why Is the City of San Mateo's Transfer Tax Higher?

Unlike many nearby Peninsula cities, San Mateo imposes its own real property conveyance tax in addition to the county documentary transfer tax.

Under Measure CC, approved by voters in November 2022, the city's tax depends on the property's sale price.

For sales under $10 million:

• City transfer tax: 0.5%, or $5 per $1,000.

• County documentary transfer tax: 0.11%, or $1.10 per $1,000.

• Combined rate: 0.61%, or $6.10 per $1,000.

For sales of $10 million or more:

• City transfer tax: 1.5%, or $15 per $1,000.

• County documentary transfer tax: 0.11%, or $1.10 per $1,000.

• Combined rate: 1.61%, or $16.10 per $1,000.

Here's an important detail: Once a transaction reaches the $10 million threshold, San Mateo's higher city tax rate applies to the entire taxable value, not just the amount exceeding $10 million.

For luxury home sellers, this can have a substantial impact on their estimated proceeds.

What About Redwood City, San Carlos, Menlo Park, and Hillsborough?

In most of the other Peninsula communities we serve, the standard combined transfer tax remains $1.10 per $1,000.

You may come across municipal codes showing that cities such as San Carlos, Menlo Park, and Hillsborough have their own transfer taxes.

That doesn't automatically mean an additional tax is added to your closing costs.

Under California Revenue and Taxation Code Sections 11911 and 11931, qualifying city documentary transfer taxes are credited against the county tax.

In these communities, the city and county generally share the revenue rather than charging homeowners twice.

For a typical $2 million sale, the combined tax remains $2,200.

Hillsborough deserves particular attention because some published closing-cost guides report a different figure. Its municipal code supports the standard shared-tax arrangement, but we recommend confirming your property's exact closing costs with the title company before relying on any estimate.

Important 2026 Update: Portola Valley Measure N

Portola Valley is another community worth watching.

On November 3, 2026, voters considered Measure N, which would establish a new town real property transfer tax of $10 per $1,000 of sale price.

As of November 5, preliminary election results showed the measure leading, but the results had not been certified and the new tax was not yet in effect.

If approved and implemented at the proposed rate, the new town tax would be added to the county's $1.10 per $1,000 documentary transfer tax, bringing the combined amount to $11.10 per $1,000.

That could represent a major change for future Portola Valley home sales.

We recommend checking the final election certification, the ordinance's effective date, and the applicable rate before calculating closing costs for a Portola Valley property.

How Much Is Transfer Tax on a $2 Million Home?

Imagine two homeowners selling properties for exactly $2 million.

One owns a home in San Carlos. The other owns a home within the City of San Mateo.

San Carlos home sale

Sale price: $2,000,000
Combined transfer tax: $2,200

City of San Mateo home sale

Sale price: $2,000,000
Combined transfer tax: $12,200

The difference: $10,000.

That's $10,000 that could otherwise factor into moving expenses, improvements to your next home, or the amount you take away from your sale.

At higher price points, the difference becomes even more significant.

On a hypothetical $12 million sale, the combined transfer tax would be approximately $193,200 in the City of San Mateo, compared with $13,200 in San Carlos, based on the rates discussed above.

That's a difference of $180,000.

These examples are why we believe sellers should understand their estimated net proceeds before choosing a listing strategy, rather than waiting until they're reviewing their final closing statement.

Who Pays Transfer Tax in San Mateo County: Buyer or Seller?

This is one of the most common questions we hear when discussing closing costs.

In many San Mateo County real estate transactions, the seller customarily pays the standard county documentary transfer tax.

However, payment responsibility is negotiable as part of the purchase agreement.

For transactions in the City of San Mateo, the additional city conveyance tax may be allocated between buyer and seller according to the parties' agreement and local escrow practices.

The important point is that you shouldn't assume who pays without reviewing the contract and your estimated closing statement.

We review those details with our clients so there aren't unexpected expenses at closing.

Is Transfer Tax the Same as Property Tax?

No. These are two different expenses.

Transfer tax is generally a one-time cost associated with transferring ownership of real estate.

Property tax is an ongoing tax based on the property's assessed value and applicable local tax rates.

Both matter when you're buying or selling a home, but they affect your finances differently.

If you're purchasing a home on the Peninsula, understanding your future property taxes is especially important when estimating your monthly housing expenses.

What Other Closing Costs Should San Mateo County Sellers Expect?

Transfer tax is only one part of the overall cost of selling a home.

Depending on your property and agreement, other expenses may include real estate commissions, title and escrow fees, inspection or repair expenses, property tax prorations, and any negotiated buyer credits.

And, of course, there's the cost of preparing your home for the market.

At the Bedbury Group, we're very involved in helping our sellers decide which improvements make sense before listing. From cosmetic updates and staging to pricing and marketing, we want every decision to have a purpose.

Just as important, we want sellers to understand the financial side of the transaction.

A strong sale price matters, but what you actually walk away with matters just as much.

Frequently Asked Questions About San Mateo County Transfer Taxes

How much is transfer tax in San Mateo County?

The standard county documentary transfer tax is $1.10 per $1,000 of taxable property value. Additional local taxes can apply, most notably in the City of San Mateo. Portola Valley also voted on a proposed change in November 2026.

What is the transfer tax on a $2 million home in Redwood City?

For a typical taxable sale, the combined documentary transfer tax is approximately $2,200.

Does San Carlos charge an additional city transfer tax?

San Carlos has its own transfer tax ordinance, but its qualifying city tax is credited against the county documentary transfer tax. The combined standard rate remains $1.10 per $1,000.

How much is transfer tax in the City of San Mateo?

For properties selling below $10 million, the combined city and county rate is 0.61%. For sales of $10 million or more, the combined rate is 1.61%, with the higher city rate applying to the entire taxable transaction value.

Does the seller always pay the transfer tax in California?

No. Although sellers often pay the county documentary transfer tax in San Mateo County, the payment allocation can be negotiated between buyers and sellers.

Are transfer taxes included in seller closing costs?

Yes. Any transfer tax allocated to the seller is generally included in the seller's closing costs and reflected in the settlement statement.

Are all real estate transfers subject to transfer tax?

Not necessarily. Certain transfers may qualify for exemptions, including some transfers involving trusts, spouses, or changes in ownership structure. Eligibility depends on the specific circumstances and applicable law. Consult your title company or an appropriate legal or tax professional.

Thinking About Selling Your Home on the Peninsula?

Whether you're considering selling in Redwood City, San Carlos, Burlingame, Belmont, Menlo Park, Hillsborough, or San Mateo, knowing your home's potential market value is only part of the equation.

You also want to understand the cost of selling, the improvements worth making, and what you could realistically walk away with.

That's where having an experienced local real estate team makes a difference.

At the Bedbury Group, we help our clients prepare, position, and promote their homes with a strategy tailored to the property and the market.

If you're considering a move, we'd be happy to help you understand your home's value, estimated selling costs, and options before you make any decisions.

The Bedbury Group
Kat Bedbury | Golden Gate Sotheby's International Realty
Serving San Mateo County, the San Francisco Peninsula, and Silicon Valley
www.bedburygroup.com
650-740-4494

Disclaimer: This article provides general real estate information, not legal or tax advice. Transfer tax rates, exemptions, and payment allocations may change. Confirm all transaction-specific amounts with your title or escrow company and qualified advisors.

Official references

San Mateo County Documentary Transfer Tax

City of San Mateo Municipal Code, Section 3.48.010

California Revenue and Taxation Code, Section 11931

San Carlos Municipal Code, Chapter 3.20

Menlo Park Municipal Code, Chapter 3.20

Hillsborough Municipal Code, Chapter 3.20

San Mateo County November 2026 Election Results