If you’re preparing to buy or sell in Berkeley, the city’s property transfer tax can be a meaningful closing item, and qualifying seismic work may return part of the base tax. The current rates are $15 per $1,000 or $25 per $1,000, depending on the property’s value. Measure W changes the tiers on January 1, 2027.
This guide is general information, not legal or tax advice.
What is Berkeley’s current transfer tax?
Berkeley currently charges $15 per $1,000 for properties up to $1.7 million and $25 per $1,000 for properties over $1.7 million.
The City of Berkeley charges this tax whenever real estate changes ownership. It is separate from, and added to, the transfer tax charged by Alameda County. For broader context on how these charges work, see documentary transfer tax in California.
The higher Berkeley rate applies to the whole property value once the sale is over the threshold. The city’s own examples make that clear. A property selling for $1.7 million owes $25,500 to Berkeley. A property selling for $2 million owes $50,000.
Those figures are city examples, not estimates for a particular closing. The pages reviewed do not say whether the buyer or seller customarily pays the tax, so the transaction documents and the Finance Department are the right places to confirm responsibility.
Berkeley says the tax helps fund general municipal services and could be used for homeless shelters, navigation centers, mental health support, rehousing, rental subsidies, and other services for people experiencing homelessness.
What changes under Measure W in 2027?
The Measure W ballot wording sets the general tax at $25 per $1,000 for properties valued at $1.6 million or higher and raises it to $30 per $1,000 at $1.9 million or higher and $35 per $1,000 at $3 million or higher, effective January 1, 2027.
City voters approved the measure in November 2024.
The thresholds are adjusted annually for increases in value. At passage, they matched the 60th, 80th, and 95th percentile of sales during the 12 months before September 1 of the previous year, rounded to the nearest $100,000.
The city’s current-rate page uses $1.7 million while the Measure W ballot wording uses $1.6 million for the same $25 per $1,000 tier. The pages do not explain the difference, and the thresholds will be recalculated before the new tiers take effect, so ask the Finance Department which figure applies to your closing date.
That confirmation matters especially when comparing sale proceeds or reviewing the broader cost to sell a house in California. A figure copied from the current-rate page or from the ballot text may not be the operative figure for the closing.
Who can qualify for the seismic rebate?
An owner may qualify if the property is used exclusively for residential purposes, or is mixed-use with at least two residential units.
The city’s materials describe eligible applicants as sellers or buyers who own the property. Qualifying upgrades must be completed before the sale or within one year after it, and the expenses must have been incurred on or after October 17, 1989.
Approved expenses are refunded dollar for dollar. The total rebate for any combination of voluntary seismic upgrades and permanent home-hardening improvements is capped at one-third of the base $15 per $1,000 transfer tax. Expressed against the sale value, that maximum is up to $5 per $1,000.
The seismic rebate does not apply to the enhanced transfer tax defined in Berkeley Municipal Code 7.52.040C.
The home-hardening rebate has its own city page, which this guide does not cover.
What seismic work can qualify?
Qualifying work includes listed structural measures and other work the Building Official decides, case by case, will make the building safer in an earthquake.
The city’s list includes bolting foundations to mudsills, installing shear walls, repairing or replacing substandard foundations, securing chimneys and stacks, removing unreinforced masonry chimneys, anchoring existing water heaters, and bracing cripple walls. Work that facilitates future improvements, enlarges existing spaces, or provides upgrades for purposes other than seismic safety is not eligible.
The project must also follow an accepted technical path. Depending on the building, that may be Plan Set A for one-family and two-family dwellings, Appendix Chapter A3 for one to four units, or Appendix Chapter A4 for five or more units under the current California Existing Building Code.
The city also lists FEMA plan sets P-1100-2A for crawlspace dwellings, P-1100-2B for dwellings with living space over a garage, and P-1100-2C for masonry chimneys. Another path is plans and calculations prepared by a California registered civil or structural engineer that meet the listed force levels.
Required corrective work under Berkeley Municipal Code Chapter 19.38 for unreinforced masonry or Chapter 19.39 for soft-story buildings may also qualify. For more background on the work itself, read the guide to earthquake retrofits.
How do you apply for the rebate?
You should contact the Building and Safety Division before starting, obtain the correct permit, complete required inspections, and submit the application with receipts.
Ask Building and Safety in advance whether the planned improvements are eligible. The building permit should include “seismic safety work for transfer tax reduction” in its scope. Stamped plans carry a statement that the work “is eligible for the Transfer Tax Reduction provided in BMC 7.52.060 upon approval of final inspection.”
Schedule every required inspection. Plan Set A projects and projects using the FEMA crawlspace or garage plan sets require rough and final inspections. If a project combines seismic and non-seismic work, the records must identify the eligible portion.
After the work passes final inspection, email the Seismic Retrofit Rebate Application and receipts to [email protected]. If approved, the Finance Department issues a check directly to the applicant within three weeks of approval.
We were helping a Berkeley buyer estimate closing costs when the transfer tax and seismic rebate came up. He initially treated the rebate as an automatic reduction in the tax due at closing. We reviewed the qualifying seismic work, documentation and deadlines so he understood the difference between paying the tax and later receiving the available benefit.
What happens if the work is not finished within one year?
A buyer may apply for a rebate on partially completed work or request a good-cause extension of up to one additional year.
The ordinary deadline is one year from the date the transfer document is recorded. The alternative is to finish the work before the property transfer. If completion within the first year becomes impossible, the extension request must be made in writing to the Finance Department within that year.
The guidelines list possible good-cause circumstances. They include being unable to find and retain an architect, engineer, or contractor after a prompt and diligent search, an unforeseen change in the project’s scope, serious illness, or extraordinary circumstances.
An extension is not automatic. The guidelines say the decision is entirely within the decision-maker’s discretion and is final.
What should you ask the city before closing or starting work?
You should confirm the applicable closing rate, the current Measure W thresholds, the work’s eligibility, the permit language, and the filing deadline with the appropriate city office.
For tax amounts, contact the Finance Department at (510) 981-7200 or [email protected]. Ask which threshold applies on the expected transfer date, particularly for a closing in 2027 or a value near one of the published tiers. The office is at 1947 Center Street.
For the retrofit, contact the Building and Safety Division at (510) 981-7440 or [email protected] before obtaining the permit. Describe the building, proposed work, and planned technical standard. Ask which inspections are required and what documentation will separate eligible seismic work from any other improvements.
Owners considering a multi-unit property may also find the guide to buying a soft-story apartment building useful for understanding the questions that can arise around structural work.
The short version
Berkeley currently charges $15 per $1,000 for properties up to $1.7 million and $25 per $1,000 for properties over $1.7 million.
Measure W takes effect January 1, 2027. Its ballot wording uses thresholds of $1.6 million, $1.9 million, and $3 million for rates of $25, $30, and $35 per $1,000, but the thresholds will be recalculated before the new tiers take effect. Confirm the figure for your closing with the Finance Department.
Eligible residential and mixed-use owners may receive a dollar-for-dollar rebate for approved seismic work. Seismic and permanent home-hardening rebates together cannot exceed one-third of the base tax, or up to $5 per $1,000. Contact Building and Safety before permitting the work, complete the required inspections, retain receipts, and watch the one-year deadline from recordation.
To put these rules in the context of a possible sale, start with the home value tool.
Common questions
What is Berkeley's current property transfer tax rate?
The city currently charges $15 per $1,000 for properties up to $1.7 million and $25 per $1,000 for properties over $1.7 million.
When does Berkeley Measure W take effect?
Measure W takes effect January 1, 2027. Its thresholds will be recalculated before the additional rate tiers become effective.
Who may qualify for Berkeley's seismic transfer tax rebate?
Sellers or buyers who own exclusively residential buildings, or mixed-use buildings with at least two residential units, may qualify after eligible voluntary seismic work.
How much can the seismic rebate cover?
Eligible expenses are refunded dollar for dollar, subject to a combined cap of one-third of the base $15 per $1,000 city tax for seismic and permanent home-hardening work.
How long do you have to complete qualifying seismic work?
The work must be completed before transfer or within one year from recordation. A buyer may request a written good-cause extension of up to one additional year.
