What are real estate taxes like when selling a home in San Diego?
When you sell a home in San Diego, you may owe capital gains tax, property taxes through the close of escrow, and local transfer taxes. The exact amount depends on how long you've owned the home, whether it's your primary residence, and your overall profit. Partnering with a local real estate expert like Peraza Real Estate can help you plan and avoid surprises.
What Real Estate Taxes Should San Diego Sellers Expect?
Selling a home in San Diego involves several types of taxes. While the term "real estate taxes" often refers to annual property taxes, sellers also need to consider taxes triggered by the sale itself.
Here's what you might encounter:
1. Property Taxes (Prorated at Closing)
You are responsible for paying property taxes up until the day escrow closes. In San Diego County, property taxes are based on 1% of the assessed value, plus local voter-approved bonds and special assessments (often totaling 1.1% to 1.25% annually).
These taxes are prorated based on your closing date.
If you've prepaid, you may receive a refund.
If you owe, the amount is usually deducted from your seller proceeds.
2. County Transfer Tax
San Diego County charges a transfer tax of $1.10 per $1,000 of the sale price.
For example:
Selling for $800,000 = $880 transfer tax
Selling for $1,200,000 = $1,320 transfer tax
This is typically paid by the seller unless otherwise negotiated.
3. City Transfer Taxes (If Applicable)
Some cities in California charge an additional local transfer tax. However, most homes in San Diego County are not subject to city-specific taxes—but it’s always best to check your city or zip code with your real estate agent.
4. Capital Gains Tax (Federal and State)
Capital gains tax applies if you made a profit on your home sale. But you may qualify for exclusions if:
It was your primary residence for at least 2 of the last 5 years
You haven't excluded capital gains on another home in the past 2 years
Exclusions:
Up to $250,000 for single filers
Up to $500,000 for married couples filing jointly
If your profit exceeds these amounts, you may owe federal capital gains tax (up to 20%) and California state tax (up to 13.3%).
⚠️ Consult a licensed tax professional to determine your exact liability.
Are There Any Other Fees or Costs That Feel Like Taxes?
Yes—some transaction costs are often mistaken for taxes:
Escrow and title fees
HOA document fees (if applicable)
Real estate commissions
While these aren't technically taxes, they do impact your bottom line. Peraza Real Estate provides seller net sheets to help you understand your full cost breakdown before you list.
Can You Avoid or Reduce Real Estate Taxes When Selling?
While you can't avoid all taxes, here are a few legal strategies to minimize what you owe:
Take advantage of the capital gains exclusion
Use a 1031 Exchange (for investment properties only)
Close your sale after prepaying property taxes to get a refund
Adjust your sale timeline to reduce taxable profit (especially if near a capital gains threshold)
Again, always check with a CPA or tax advisor before making decisions.
Why Peraza Real Estate Helps You Plan Smarter
At Peraza Real Estate, we don’t just help you sell your home. We help you understand every part of the process—including the costs that come with it.
We:
Provide customized seller net sheets
Partner with escrow officers and title reps to ensure transparency
Help you avoid surprises at closing
Advise on timing to reduce unnecessary costs
Whether you're selling a condo in Chula Vista or a single-family home in Clairemont, our team has the local knowledge and transaction experience to guide you confidently.
Neighborhood-Specific Tax Considerations in San Diego
While property tax rates are fairly standard across the county, special assessments (Mello-Roos or CFD fees) can vary dramatically. Areas like:
Eastlake and Otay Ranch: Often include Mello-Roos bonds for newer infrastructure.
Downtown San Diego: May include special assessment districts for city services or amenities.
Spring Valley or Lemon Grove: Typically have lower total tax rates.
Understanding these nuances can affect how your home is priced and marketed.
Final Thoughts
Selling your home in San Diego? Understanding real estate taxes upfront can help you avoid surprises and plan your move with confidence.
The best next step: connect with a trusted local expert. Peraza Real Estate will walk you through every cost, from capital gains to closing fees, and help you maximize your net proceeds.
Thinking about selling?
📞 Contact Peraza Real Estate today to get pre-approved, tour properties, or learn more about how we help buyers win in this market. (619) 920-7345
👉 perazarealestate.com
🫂 Leslie Peraza 01426666. Luis Peraza 02118046. Angelo Peraza 02245695.