CA · #1 by population

Buying a home in California

Costs and rules that are specific to California. Main city: Los Angeles.

In short

California has no state transfer tax (counties and cities may charge one), does not require an attorney at closing and requires a seller disclosure form. It allows both court and out-of-court foreclosure and is a community property state.

Calculate for California

If you buy

California state transfer tax

California has no state transfer tax; counties and cities may charge one.

Price$759,500
State transfer taxnot computed
Who paysSet by the purchase contract

Default price: the California median value of owner-occupied homes, $759,500 (Census ACS 2024). Not computed: No state tax. The tax is set by county and city, so it cannot be computed from the state alone. Who pays: Neither the state statute nor the City of Los Angeles FAQ assigns the tax; the purchase contract and escrow instructions decide. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. California transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: California state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

California in short

Is there a real estate transfer tax in California?

California has no state transfer tax. Counties may charge $0.55 per $500 of value under the Documentary Transfer Tax Act, and cities such as Los Angeles add their own, with Measure ULA adding 4% or 5.5% on very high-priced sales.

Full California guide · Compare all 50 states

What closing costs does California law set?

California has no official typical closing-cost total. Transfer taxes are set by county and city, for example $1.10 per $1,000 in Los Angeles County plus $4.50 per $1,000 in the City of Los Angeles, or $5,600 on a $1,000,000 home.

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How is property tax calculated in California?

California limits the general property tax to 1% of assessed value under Proposition 13, and assessed value can rise at most 2% a year until a change of ownership or new construction. In Los Angeles tax rate area 00004 the 2026-27 total is 1.185825%.

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What is the deadline to appeal a property tax assessment in California?

In Los Angeles County, California, the regular 2026 assessment appeal period runs from July 2 to November 30, 2026, filed with the Assessment Appeals Board (non-refundable $46 fee, hardship waiver available), and a supplemental assessment must be appealed within 60 days of the mailing date on the notice or bill.

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Do you need a real estate attorney to close in California?

No. California home sales close through escrow, and the Escrow Law lets licensed escrow companies, title insurers, banks, brokers and attorneys hold escrows, so no attorney is required. A written fee contract is required if a lawyer is hired and fees will exceed $1,000 (Bus. & Prof. Code 6148).

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What must a home seller disclose in California?

A California seller must deliver a Real Estate Transfer Disclosure Statement (Civil Code 1102.6) and a Natural Hazard Disclosure Statement (1103.2). If either arrives after the offer, the buyer may cancel within 3 days of in-person delivery or 5 days if mailed or sent electronically.

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How does foreclosure work in California?

Most California foreclosures are non-judicial trustee's sales: at least three months must pass after the notice of default, then a notice of sale at least 20 days before the auction. Counting the federal 120-day wait, the legal minimum is about seven and a half months.

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What first-time home buyer programs does California offer?

In California, the California Housing Finance Agency (CalHFA) lends first-time buyers up to 3.5% of the price with an FHA loan or 3% with a conventional loan through MyHome. Its Dream For All loan (up to 20%, capped at $150,000) closed to new applications on March 16, 2026.

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Is California a community property state?

California is a community property state: a home a married person acquires during marriage while living in California is presumed community property (Family Code 760), and both spouses must sign to sell or encumber it (Family Code 1102).

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Which natural hazards affect home insurance in California?

A standard California homeowners policy does not cover earthquake damage. Insurers must offer earthquake coverage (Insurance Code 10081), and the FAIR Plan sells limited fire coverage up to $3 million for residential policyholders.

Full California guide

How much tax when you sell a home in California?

The federal rule is the same in California as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. California income tax on the gain is not computed here.

Capital gains on a home sale

California guides

Los Angeles

Buying a home in Los Angeles, California

Professionals in California

All states · Federal guides