San Diego, January 30, 2026
San Diego County’s Board of Supervisors is considering a substantial increase in the real estate transfer tax from 0.11% to 6.11%. This major hike could raise costs for property transactions dramatically, especially affecting high-value properties. The proposal aims to generate additional revenue to address budget challenges, but it raises concerns among real estate professionals regarding its potential negative impact on the market and affordability for buyers.
San Diego County Proposes Significant Increase in Real Estate Transfer Tax
San Diego County is considering a substantial hike in its real estate transfer tax, aiming to raise the rate from 0.11% to 6.11%. This proposed increase would significantly impact property transactions, especially for high-value properties. For instance, on a $1 million home, the tax owed would rise from $1,100 to $61,100, even if the seller incurs a loss. This move has sparked concerns about its potential effects on the local real estate market and the broader economy.
Details of the Proposed Tax Increase
The San Diego County Board of Supervisors has voted to hire a lobbyist to seek approval from the California Legislature for this tax increase. The proposed 6.11% rate would apply to all real estate transactions within the county, marking a significant departure from the current 0.11% rate. This change is part of a broader strategy to generate additional revenue for the county, which has been facing budgetary challenges in recent years.
Potential Impact on the Real Estate Market
Real estate professionals and potential buyers are expressing concern over the proposed tax increase. Higher taxes could deter property transactions, leading to a slowdown in the market. Sellers might find it more challenging to sell properties, especially in the luxury segment, as the increased tax burden could make properties less attractive to potential buyers. Additionally, the higher costs could be passed on to buyers, making homeownership even less affordable in an area already known for its high living costs.
Context and Background
San Diego County has been exploring various fiscal measures to address budget shortfalls. In June 2025, the Board of Supervisors approved an $8.63 billion budget for the 2025-26 fiscal year, marking a 1.2% increase from the previous year. This budget includes allocations for public safety and other essential services. The proposed real estate transfer tax increase is part of a series of initiatives aimed at bolstering the county’s financial position. However, such significant tax hikes often face scrutiny due to their potential impact on residents and the local economy.
Conclusion
The proposed increase in San Diego County’s real estate transfer tax represents a bold move by the Board of Supervisors to generate additional revenue. While it aims to address fiscal challenges, the potential consequences for the real estate market and residents are significant. Stakeholders are closely monitoring the situation, awaiting further developments and discussions on this proposal.
Frequently Asked Questions (FAQ)
What is the proposed increase in San Diego County’s real estate transfer tax?
The San Diego County Board of Supervisors is considering raising the real estate transfer tax from 0.11% to 6.11%, a significant increase that would substantially affect property transactions within the county.
How would this tax increase impact property transactions?
For a $1 million property, the tax owed would rise from $1,100 to $61,100, even if the seller incurs a loss. This substantial increase could deter property transactions, especially in the luxury segment, and make homeownership less affordable for potential buyers.
What is the rationale behind the proposed tax increase?
The proposed increase is part of a broader strategy by the San Diego County Board of Supervisors to generate additional revenue to address budget shortfalls and fund essential services, including public safety and infrastructure projects.
What are the potential consequences of this tax increase?
The tax increase could lead to a slowdown in the real estate market, deter property transactions, and make homeownership less affordable. Sellers might find it more challenging to sell properties, and buyers could face higher costs, potentially impacting the local economy.
What is the current status of the proposed tax increase?
The San Diego County Board of Supervisors has voted to hire a lobbyist to seek approval from the California Legislature for the proposed tax increase. Further developments are awaited as the proposal progresses through the legislative process.
Key Features of the Proposed Tax Increase
| Feature | Description |
|---|---|
| Proposed Tax Rate | Increase from 0.11% to 6.11% on real estate transactions within San Diego County. |
| Impact on Property Transactions | Significant increase in tax owed, potentially deterring property transactions and affecting affordability. |
| Revenue Generation | Intended to generate additional revenue to address budget shortfalls and fund essential services. |
| Current Status | Board of Supervisors voted to hire a lobbyist to seek legislative approval; further developments awaited. |
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Author: STAFF HERE SAN DIEGO WRITER
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