A Guide to California Closing Costs (2026 Update)

Thinking about selling or buying real estate in California? Depending on where your home is located, different standards apply — and the details matter.

Download our Free 2026 Guide to California Closing Costs

Wherever you are in the home buying or selling process, it is essential that there are no surprises. There are 58 counties in California — from Alameda to Yuba — and each has its own customs for who pays what. The closing cost guidelines below are current as of 2026 and reflect data provided by our friends at Old Repblic Title. Always verify the specifics with your escrow officer and real estate agent, as terms can be negotiated.

What are typical closing costs?

When closing on a California real estate transaction, there are certain fees that must be paid. These generally fall into three categories: Escrow Charges, Title Fees, and Transfer Taxes. Depending on the county, customs vary significantly on who covers each.

On average, sellers in California can expect to pay between 2% and 3% of their home's final sale price in closing costs — though in San Francisco, that figure can run meaningfully higher on luxury properties due to the city's tiered transfer tax structure.

Escrow Charges

As a general rule, escrow charges are split 50/50 between buyer and seller throughout most of California. San Francisco is a notable exception: buyers in San Francisco are typically expected to cover escrow fees.

Title Fees Owner Policy

Title fee customs vary considerably by county. In San Francisco County, it is customary for the buyer to pay the Owner's Title Insurance Policy fee. In many other Bay Area counties, the seller covers this cost. Check county-specific guidelines or ask your agent for local norms.

City Transfer Taxes

Transfer taxes are charged at the time of sale and are calculated based on the sale price. California's statewide base rate is $1.10 per $1,000 of the sale price (split $0.55 per $1,000 each between county and state). Many cities and counties layer additional local transfer taxes on top of this.

Always confirm with your agent and title company which local transfer taxes apply to your specific transaction.

San Francisco Transfer Tax — 2026 Rates

In San Francisco, the seller pays the transfer tax. The rate is tiered based on the total consideration (purchase price) and is expressed as a dollar amount per $500 of value. The current rates, per the SF Office of the Assessor-Recorder, are:

Important note for 2026: The higher rates on properties priced at $10M+ were established by Proposition I (2020), which doubled taxes at those tiers. As of mid-2026, there is an active discussion among city officials and the Board of Supervisors about potentially reducing or repealing these upper-tier rates to stimulate commercial and luxury transactions. No repeal has passed as of the date of this post — confirm current rates with your title company at close of escrow.

Quick SF Transfer Tax Examples

Estimates only. Exact amounts calculated on the precise sale price — consult your escrow officer.

A Note on Negotiation

While closing costs are a certainty, who pays them is often negotiable. In a buyer's market, sellers sometimes offer to cover a portion of the buyer's closing costs as a concession. In a competitive seller's market like San Francisco has historically been, buyers more commonly absorb their own costs. A knowledgeable local agent will help you understand what's customary in your specific neighborhood and transaction type.

If you'd like to be connected with a vetted agent outside of San Francisco, we're happy to share our recommendations — we have an extensive network of top agents across the state. If San Francisco is your focus, we would be happy to represent your interests. Let's talk.

Additional Reading

Closing costs are a major line item, but the tax side of a transaction can be just as significant — especially when you factor in transfer taxes, Prop 13 reassessments, supplemental tax bills, and potential capital gains. These related guides can help you estimate the true all-in cost and avoid surprises:

• San Francisco Property Taxes: Your Top Questions Answered — https://legacysfhomes.com/blog/san-francisco-property-taxes

• Supplemental Taxes Explained (San Francisco County) — https://legacysfhomes.com/blog/supplemental-taxes

• What is a 1031 Exchange — https://legacysfhomes.com/blog/what-is-a-1031-exchange

• How to Transfer Your Property Tax Base Under Prop 19 — https://legacysfhomes.com/blog/how-to-transfer-your-property-tax-base-under-prop-19

• San Francisco’s Empty Homes Tax Explained — https://legacysfhomes.com/blog/the-new-vacant-homes-tax

• Home Sale Calculator — https://legacysfhomes.com/home-sale-calculator

• Prepping Your Home for Sale — https://legacysfhomes.com/prepping-for-sale

Download our Free 2026 Guide to California Closing Costs

While closing costs will always have to be paid, your real estate agent can often negotiate who pays them — you or the buyer. A local knowledgeable realtor will have an understanding of the closing costs you can expect to pay, depending on the California neighborhood you're selling in and other factors. 

 If you would like to be connected with a vetted agent outside of San Francisco, we would be happy to share our recommendations. We have an extensive network of top agents across the State. If San Francisco is your focus, we would be happy to represent your interests. Let’s talk.