What is Santa Monica's Measure GS transfer tax for sellers?

At $8,000,000, Santa Monica’s city transfer tax jumps from $6 to $56 per $1,000 on the whole sale price. For sellers whose homes could reach that line, the third tier added by Measure GS can be one of the largest closing line items. This guide helps Santa Monica sellers estimate the city tax that sits on top of the tax every Los Angeles County sale pays.

The desk’s Santa Monica market read for the week of October 5, 2026, with data as of October 7, 2026, puts the city’s highest-priced listed home at $7,995,000. That asking price is $5,000 below the $8,000,000 line where the city transfer tax rate changes. The same read counted 11 new listings, 16 price cuts, 13 closed sales and 8 homes going under contract.

The tax figures below come from the City of Santa Monica’s pages and municipal code. This explains the rule; it isn’t tax or legal advice.

What did Measure GS change?

Measure GS added a third tier to Santa Monica’s real property transfer tax after voters approved it in November 2022. The city’s transfer tax page gives March 1, 2023 as its effective date.

The city’s measure page describes a new Chapter 4.90, which establishes designated funds for schools, homelessness prevention and affordable housing, along with an eleven-member resident oversight committee. It also describes an amendment to Chapter 6.96, the transfer tax chapter, which sets the amount owed on your closing statement.

According to the ballot question, the third tier continues until repealed. The city’s page lists no end date.

Which rate applies to your sale?

Your sale’s consideration or property value determines the city rate: $3 per $1,000 under $5,000,000, $6 per $1,000 from $5,000,000 up to but not including $8,000,000, and $56 per $1,000 at $8,000,000 or more. The third tier reaches any sale or transfer in Santa Monica with consideration or value of $8,000,000 or more.

Under the code, the value of any lien or encumbrance that remains on the property at the time of sale is excluded. For a typical sale where your loan is paid off, that exclusion does little. If the buyer is taking over an existing loan, that figure needs attention in your calculation.

Los Angeles County’s separate documentary transfer tax is $0.55 for each $500, or $1.10 per $1,000. Its bulletin says the full $1.10 per $1,000 county rate applies in Santa Monica and the other four cities with special rates.

The city code charges per $1,000 or fractional part of $1,000, so a partial block counts as a full block. The county bulletin prescribes a transfer tax declaration on the deed’s first page, with county and city amounts listed separately.

What happens at the $8,000,000 line?

Reaching $8,000,000 changes the city rate for the whole sale price. The code says the Third Tier Tax Rate applies to a transfer at or above $8,000,000 and defines that rate as $56 for each $1,000 of consideration or property value. Nothing in the text limits it to the amount above the line.

At $7,999,999, a sale falls in the middle tier. Counting the fractional block gives 8,000 blocks at $6 per $1,000, for a city tax of $48,000.

At exactly $8,000,000, the same 8,000 blocks at $56 per $1,000 give a city tax of $448,000. The county portion at $1.10 per $1,000 would be $8,800 in either case.

These figures demonstrate the rates; they aren’t a quote for your closing. Your escrow or title officer prepares the calculation for your price. Near a tier line, review the figure at the contract price before you accept an offer.

Who is responsible for paying?

Both parties are legally liable under Santa Monica’s code, while the purchase contract allocates the cost between you and the buyer.

Section 6.96.030 says the tax is paid by the person who makes, signs or issues the deed, the person for whose use or benefit it is made, or any combination of them. It calls this a joint and several liability, meaning the city can collect the full amount from either party.

Your attorney can explain how your contract allocates the cost. Don’t assume the answer from a neighbor’s sale.

How is the tax collected at closing?

The tax is due when the deed is delivered to the County Recorder and has to be paid before recording. Under the code, any tax still unpaid at recordation is delinquent.

According to the Los Angeles County Registrar-Recorder’s bulletin, its office collects city transfer tax on the city’s behalf when the document is recorded. Calculating it is the document preparer’s responsibility, not the Recorder’s.

The city’s code splits the third tier between the county and city. Unless the county has entered a binding agreement to collect the entire amount, the code says whoever records the deed, including the escrow or title company, administers the part owed to the city and must confirm it is paid or set aside before recording.

The city’s transfer tax page says the county collects both the city’s portion and its own. Ask your escrow officer which route applies to your closing.

Could an exemption apply?

The code provides a few exemptions, but none is a general exemption for a primary residence. It exempts instruments given to secure a debt, transfers where the party is a government unit such as the United States, a state or a city, and certain transfers tied to bankruptcy, reorganizations and continuing partnerships.

For certain affordable housing transfers by nonprofit corporations and community land trusts, the city’s page also describes a partial exemption. It applies to the second and third tier amounts. The transfer remains subject to the first tier and county tax.

A taxpayer is supposed to seek certification from the Director of Finance before completing the transfer, or apply for a refund within 120 days.

If you hold the property in an LLC, partnership or trust, the transfer’s structure can change how these rules apply. Ask your attorney and CPA about your arrangement rather than inferring the answer from a headline.

What should you ask before listing?

Ask a title or escrow officer for a written transfer tax estimate at two or three price points around your target. Have the city and county amounts shown separately, so you can see how close you are to the $5,000,000 and $8,000,000 lines.

Confirm who pays under the contract form you plan to use. Your attorney can explain how joint and several liability affects you if the buyer’s side disputes the split. Confirm the collection route with escrow so no funds are missing at recording.

For the rest of your estimate, the cost to sell a house in California covers other line items. Capital gains when selling a home in California covers the income tax side, while the seller disclosure guide covers paperwork you owe the buyer. Ask a CPA how transfer tax paid at closing interacts with your own tax return.

Insider Realty’s city reports, including the weekly Santa Monica read, track new listings, price cuts, closed sales and homes going under contract each week.

Where should you check the current rule?

Check the City of Santa Monica’s transfer tax page before you price. The city page lists the tiers and a contact for the Treasury division, and the county Registrar-Recorder publishes its own bulletin.

Tax rules can change by vote. Use the rates here to prepare your questions, then confirm the current figures for your sale.

The short version

Measure GS created Santa Monica’s third city transfer tax tier: $56 per $1,000 on sales of $8,000,000 or more, effective March 1, 2023. The price bracket sets the rate for the whole sale. Both parties are jointly liable under the code, and the tax is paid at recording through escrow. Get a written estimate before listing and settle who pays in the contract.

For a first read on value before a conversation about your specific home, start with the home value tool.