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Documentary Transfer Tax in Real Estate Transactions: A Closer Look

Navigating real estate transactions can involve various fees, including the Documentary Transfer Tax (DTT). This guide examines how DTT applies in property deals, offering insights for those in dynamic markets. Outcomes depend on individual circumstances, and professional advice is recommended.

What is the Documentary Transfer Tax?

The DTT is a fee imposed on documents conveying real property, as outlined by California law. It applies when the property value exceeds $100, calculated at $0.55 per $500 or fraction thereof, based on the net value excluding liens. In areas like Long Beach or Torrance, this tax is collected by the county recorder when a deed is recorded. The process varies, and results depend on specific agreements—consult a specialist for your situation.

City-Specific DTT Rates

Certain cities in the region have additional DTT rates beyond the county’s $1.10 per $1,000. These rates, collected alongside the county portion, differ based on location and property value. For example, in Santa Clarita or Pasadena, understanding these rates can be a useful step in transaction planning. Below is a table summarizing the rates for key cities:

City	Tax Rate
Culver City	0.45% on ≤ $1,499,999; 1.5% on $1,500,000-$2,999,999; 3% on $3,000,000-$9,999,999; 4% on ≥ $10,000,000
Los Angeles (prior to 7/1/25)	$2.25 per $500 + 4% on $5,150,000-$10,299,999; 5.5% on ≥ $10,300,000
Los Angeles (effective 7/1/25)	$2.25 per $500 + 4% on $5,300,000-$10,599,999; 5.5% on ≥ $10,600,000
Pomona	$2.20 per $1,000
Redondo Beach	$2.20 per $1,000
Santa Monica (prior to 3/1/23)	$3.00 per $1,000 (≤ $4,999,999); $6.00 per $1,000 ($5,000,000-$7,999,999); $56.00 per $1,000 (≥ $8,000,000)

Note: Rates are set by individual cities and collected with the county tax. Calculations are the preparer’s responsibility, not the recorder’s. See details at https://www.lavote.gov/home/recorder/property-document-recording/documentary-transfer-taxes/general-info.

Measure ULA and Its Impact on Total TaxesIn Los Angeles, Measure ULA introduces an additional layer to the DTT, effective April 1, 2023, with adjusted thresholds from July 1, 2025. This measure adds a tax to fund housing initiatives, applying a 4% rate on properties valued over $5,300,000 but under $10,600,000, and 5.5% on those at or above $10,600,000, atop the base $2.25 per $500. For instance, a $6,000,000 property in Los Angeles might face the base tax plus 4%, increasing the total tax burden. Outcomes vary, and exemptions may apply—check with professionals.
The DTT, with city-specific rates and Measure ULA’s influence, adds complexity to real estate deals across areas like Torrance or Santa Clarita. Understanding these fees can inform your approach—though results depend on individual cases. For personalized support, you can reach out to NESI Title & Escrow Company, where they can provide a detailed net sheet to help you see what these costs are, along with other estimated expenses for your property transaction.