San Diego County Cancels $60,200 Transfer Tax: What Homeowners Need to Know

When San Diego County homeowners learned that supervisors were quietly pursuing a transfer tax increase that would add $60,200 to the sale of a median-priced home, the backlash was swift and decisive. On January 7, 2026, the county pulled the plug on the controversial proposal, but the story doesn't end there.

Board Chair Terra Lawson-Remer has indicated that a future ballot measure targeting "mansions worth five or ten million dollars or more" remains under consideration. For luxury homeowners in La Jolla, Del Mar, Rancho Santa Fe, and other high-end markets, this creates significant uncertainty about the timing of selling their properties.

If you're considering selling a home in San Diego County—especially if it's valued above $5 million—understanding this policy landscape and your strategic timing options has never been more critical.

What Happened: The 55x Transfer Tax Proposal Explained

In late 2025, San Diego County supervisors quietly sought legislative authority to dramatically increase real estate transfer taxes. According to a draft contract obtained by the San Diego Union-Tribune, the proposal would have raised the transfer tax from $0.55 per $500 to $30.55 per $500—a staggering 55-fold increase.

Let's break down what that would have meant in real dollars:

Current San Diego County Transfer Tax:

• Rate: $0.55 per $500 of home value
• On $985,000 median home: $1,085
• On $2.5M La Jolla home: $2,750
• On $5M luxury property: $5,500

Proposed Transfer Tax (Cancelled):

• Rate: $30.55 per $500 of home value
• On $985,000 median home: $60,200
• On $2.5M La Jolla home: $152,750
• On $5M luxury property: $305,500

The county also sought additional taxation powers, including the ability to impose payroll taxes and automatic inflation adjustments to transfer tax rates without additional voter approval.

The proposal echoed calls Board Chair Terra Lawson-Remer made in her April 2025 State of the County address for "a small transfer fee on the top 1% of real estate holdings in the county."

Why It Was Cancelled: Political Backlash and Transparency Concerns

Republican Supervisor Jim Desmond led the opposition after discovering the proposal was being developed without public input. In his board proposal, Desmond called it a "quiet effort to raise taxes" and celebrated the cancellation as "a win for transparency."

"Once the quiet effort to raise taxes and add new taxes was brought to light, the right outcome followed," Desmond stated, adding that "San Diegans deserve relief—not another bill."

The county had planned to hire Sacramento lobbyists to push for legislative changes allowing these new taxation powers. When the request for quotes became public, the political calculus shifted quickly. On January 7, 2026, just one day after Voice of San Diego reported on the proposal, county officials cancelled the request for lobbyists.

In a statement, Lawson-Remer's office pivoted to budget concerns: "What we're moving forward on is our work to protect taxpayers and essential services as we move into a very difficult budget year due to significant federal cuts that are looming."

What's Next: Future Ballot Measures Targeting Luxury Homes

While the broad-based transfer tax increase died, the conversation about taxing high-value properties continues. The San Diego Union-Tribune reported that Lawson-Remer indicated "a ballot measure for mansions worth five or ten million dollars or more would remain a possibility."

This mirrors successful luxury property tax initiatives in other California jurisdictions, most notably Los Angeles County's Measure ULA.

LA County Measure ULA: A Cautionary Precedent

In November 2022, Los Angeles County voters approved Measure ULA, commonly known as the "mansion tax." Implemented in April 2023, it imposes:

• 4% tax on property sales between $5 million and $10 million
• 5.5% tax on property sales above $10 million

Initial projections suggested the tax would raise $600 million to $1.1 billion annually. However, actual collections have been far lower, averaging just $288 million per year—less than half the lowest projections.

Why the shortfall? UCLA Lewis Center researchers found that high-value property sales fell by about 50% in the first two years after implementation—a far steeper decline than elsewhere in the county during the same period.

For San Diego luxury homeowners, the LA County experience offers critical lessons:

1. Luxury transfer taxes can and do pass voter approval
2. They create strong incentives to sell before implementation
3. Property owners who wait face substantially higher transaction costs

San Francisco's Progressive Transfer Tax Model

San Francisco takes a different approach with a tiered transfer tax system that starts at $2.50 per $500 for properties under $250,000 and escalates for higher-valued properties. While San Francisco has no county transfer tax, its city-level taxes can reach $7.50 per $1,000 or higher for luxury properties.

If San Diego County pursues a ballot measure, it's likely to follow either the LA County model (flat percentage on luxury sales) or the San Francisco model (graduated tiers based on property value).

Transfer Tax Comparison: San Diego vs Other California Counties

Understanding how San Diego's current transfer tax compares to other major California markets provides important context:

Note: Rates shown are county-level only. Some cities impose additional transfer taxes.

As this comparison shows, San Diego County currently maintains one of the lowest transfer tax burdens in major California markets. A luxury surcharge similar to LA County's Measure ULA would represent a dramatic shift in transaction costs for high-end properties.

Who Should Pay Attention: Properties Most at Risk from Future Taxes

If a future ballot measure targets properties worth "five or ten million dollars or more," certain San Diego County markets face disproportionate exposure:

La Jolla: Ground Zero for Luxury Tax Impact

With a median home price of $2.8-3.2 million, La Jolla represents San Diego County's most expensive residential area. While the median falls below the likely $5M threshold, oceanfront properties ranging from $5-20+ million would face substantial tax increases.

A $10 million La Jolla oceanfront home would see transfer taxes jump from $11,000 to potentially $561,000 under an LA-style 5.5% tax—a $550,000 increase.

Del Mar: Beach Town Luxury at Risk

Del Mar's median price of approximately $2.5-2.8 million means many properties fall below the threshold, but beachfront homes commanding $4-12+ million would be significantly impacted.

Rancho Santa Fe: Ultra-Exclusive Estate Vulnerability

Rancho Santa Fe, with a median of $3.5 million and custom estates ranging from $3-20+ million, has the highest concentration of properties that would fall under a $5M+ luxury tax.

Other High-Value Markets

• Coronado: Waterfront properties frequently exceed $5M
• Point Loma: Premium coastal homes increasingly approach luxury thresholds
• Downtown San Diego: High-rise luxury condos in the $5M+ range

Investment and Second Home Owners

Beyond geographic markets, certain property owner profiles face higher exposure:

1. Multi-property portfolios: Cumulative transfer tax costs across multiple sales
2. Second home owners: Properties held for personal use may face higher tax rates (as in some international luxury tax models)
3. Estate planning situations: High-net-worth families managing generational wealth transfers

The Math: What a $5M Threshold Tax Would Cost

Let's calculate the real-world impact using the LA County Measure ULA model as a template:

To put these numbers in perspective, a $200,000 transfer tax on a $5 million home equals:

• Four years of college tuition at a private university
• The full purchase price of a median San Diego County starter home
• More than most sellers save by avoiding real estate agent commissions in a cash sale

For ultra-luxury properties, the $1.1 million transfer tax on a $20 million estate exceeds the typical 6% real estate commission cost.

Strategic Timing: Should You Sell Before a Future Ballot Measure?

If you own a property worth $5 million or more in San Diego County, the possibility of a future transfer tax ballot measure raises critical timing questions.

Ballot Measure Timeline: Understanding Your Window

California's ballot measure process follows a specific timeline:

1. Signature gathering period: 180 days to collect required signatures
2. 25% threshold notification: Proponents must certify when they reach 25% of required signatures
3. Signature verification: Counties have 8-60 working days depending on sample results
4. Qualification deadline: 131 days before the next statewide general election
5. Election placement: Since July 2011, initiative measures only appear on statewide general election ballots

From proposal to implementation, expect a minimum timeline of:

• 6-12 months: Signature gathering and qualification
• 4-8 months: Campaign period until election
• 3-6 months: Post-election implementation delay

Total timeline: 13-26 months from proposal to effective date

This means if a transfer tax ballot measure is proposed in mid-2026, the earliest it would likely take effect is late 2027 or early 2028, assuming it qualifies for the November 2026 ballot and passes.

Risk vs. Reward Calculation

Luxury property owners face a complex decision matrix:

Arguments for Selling Now:

• Lock in current low transfer tax rates ($0.55 per $500)
• Avoid potential $200,000-$1,000,000+ tax increases
• San Diego luxury market showed 8.5% year-over-year appreciation in 2025
• Tax certainty vs. policy uncertainty

Arguments for Waiting:

• Ballot measure may never materialize
• Voters could reject the measure (though LA County approved Measure ULA)
• 13-26 month timeline provides advance warning
• Continued price appreciation may offset future tax costs
• Market conditions may improve

Market Conditions Favor Luxury Sellers in 2026

San Diego's luxury market (homes $2M+) demonstrates unique strength entering 2026:

• Median luxury home price: $3.2 million (up 8.5% year-over-year)
• Days on market: 45 days
• Cash buyers: 68% of luxury transactions
• Sales of $10M+ homes: 36 transactions in 2025, up from just 10 in 2019

For sellers concerned about transfer tax policy uncertainty, current market conditions provide favorable exit opportunities.

Cash Buyer Advantage: Speed to Close Before Policy Changes

When ballot measures loom, closing speed becomes a strategic advantage. Traditional home sales in San Diego County average 30-60 days from offer acceptance to closing, while all-cash purchases typically close in 7-14 days.

This time difference matters in three scenarios:

Scenario 1: Pre-Election Rush

If a transfer tax ballot measure qualifies for the November 2026 election and polling suggests strong support, expect a surge of luxury listings in September-October 2026 as sellers race to close before a potential January 2027 implementation.

Cash buyers can guarantee closings within this window. Traditional sales with financing contingencies face risks:

• Appraisal delays
• Loan processing timelines
• Underwriting hold-ups
• Last-minute buyer financing issues

A cash offer accepted on October 15 can close by October 28—comfortably before election day. A financed offer might not close until late November or December, after the election outcome is known but potentially before implementation.

Scenario 2: Post-Election Implementation Deadline

If voters approve a luxury transfer tax in November 2026, the county would likely set an implementation date 90-180 days later (typically March-May 2027).

This creates a final window where sellers scramble to close before the effective date. Properties listed in February with traditional financing might not close until April—potentially after the new tax takes effect.

Cash buyers can compress this timeline, closing sales in 10-14 days and guaranteeing they capture the old tax rates.

Scenario 3: Certainty vs. Maximum Price Trade-off

Even without an active ballot measure, luxury property owners face a fundamental trade-off:

• Traditional sale: 30-60 day timeline, potentially higher sale price, financing contingencies
• Cash sale: 7-14 day timeline, potentially 3-5% lower price, guaranteed closing

For a $10 million property facing potential $550,000 in future transfer taxes, accepting a cash offer at $9.7 million (3% below asking) still nets $250,000 more than a traditional sale at $10 million after paying the future luxury tax.

Case Study: $8M La Jolla Home Timeline Comparison

Let's examine a realistic scenario:

Property: $8 million oceanfront home in La Jolla
Scenario: Ballot measure qualified for November 2026, polling at 55% support
Current date: September 1, 2026

Traditional Sale Timeline:

• September 15: Accept offer at $8.2M with financing
• September 20-30: Inspection period
• October 1-15: Appraisal ordered and completed
• October 16-31: Loan processing and underwriting
• November 12: Scheduled closing (62 days from offer)
• Risk: Election occurs November 5 before closing; if measure passes, seller faces uncertainty about implementation timeline

Cash Sale Timeline:

• September 15: Accept cash offer at $7.9M (3.6% discount)
• September 20-25: Inspection period (abbreviated)
• October 1: Closing (16 days from offer)
• Benefit: Closed before election, zero policy risk

Financial Analysis:

• Traditional sale: $8.2M - $9,020 current tax = $8,190,980 net (if tax doesn't increase)
• Traditional sale: $8.2M - $328,000 4% luxury tax = $7,872,000 net (if tax passes and applies)
• Cash sale: $7.9M - $8,690 current tax = $7,891,310 net (guaranteed)

In this scenario, the cash sale nets $19,310 more than the traditional sale if the luxury tax applies, while eliminating all policy uncertainty.

Current San Diego Transfer Tax: How It Works Today

Understanding the current system helps you appreciate what might change:

Current Rate Structure

San Diego County uses the statewide baseline transfer tax rate of $0.55 per $500 of home value, which translates to $1.10 per $1,000.

The transfer tax applies to the full sale price with no exemptions for primary residences, investment properties, or luxury homes—every property is taxed at the same rate.

Who Pays the Transfer Tax?

By custom in San Diego County, sellers typically pay the transfer tax, though this is negotiable. The purchase agreement can specify either party pays, or the cost can be split.

In practice:

• Seller pays: 85% of transactions
• Buyer pays: 5% of transactions
• Split equally: 10% of transactions

Luxury cash buyers sometimes request sellers pay all transfer taxes as a condition of their all-cash, no-contingency offer.

When Is the Tax Collected?

Transfer tax is collected at closing and paid to the San Diego County Recorder's office when the deed is recorded. Title companies typically handle this payment as part of the closing process.

The tax is calculated on the full sales price with no deductions for:

• Existing mortgages
• Seller concessions
• Property condition
• Multiple parcels (each deed transfer is taxed separately)

Example Calculations at Different Price Points

• $500,000 home: $500,000 ÷ 500 = 1,000 × $0.55 = $550
• $1,000,000 home: $1,000,000 ÷ 500 = 2,000 × $0.55 = $1,100
• $2,500,000 home: $2,500,000 ÷ 500 = 5,000 × $0.55 = $2,750
• $5,000,000 home: $5,000,000 ÷ 500 = 10,000 × $0.55 = $5,500

These modest amounts contrast sharply with the $60,200 that would have been charged on the median $985,000 home under the cancelled proposal—or the $200,000+ that would be charged on luxury homes under an LA-style transfer tax.

What San Diego Cash Buyers Offer in Times of Tax Uncertainty

At San Diego Fast Cash Home Buyer, we've helped hundreds of homeowners navigate complex timing situations—from 1031 exchange deadlines to probate constraints to market timing concerns.

Transfer tax policy uncertainty adds a new dimension to strategic selling decisions, particularly for luxury property owners.

Our Approach for Luxury Properties

1. Rapid valuations: Professional assessment within 24-48 hours
2. Cash offers: Typically 7-10 days from initial contact to written offer
3. Flexible timelines: Close in as few as 7 days or on your preferred schedule
4. No contingencies: No financing, no appraisal, no sale-of-other-property contingencies
5. Guaranteed closing: We close on the agreed date regardless of market changes

When Cash Makes Sense

Cash sales aren't right for every seller, but they're particularly valuable when:

• Policy uncertainty creates timing urgency
• You want guaranteed closing before ballot measure deadlines
• Speed matters more than extracting maximum market value
• You're managing complex estate planning situations
• You own multiple properties and want to sell several before potential tax changes
• You prioritize certainty over optimizing every dollar

For luxury homeowners in La Jolla, Del Mar, Rancho Santa Fe, and other high-end San Diego County markets, the $200,000-$1,000,000+ in potential future transfer taxes makes timing a critical financial decision.

Frequently Asked Questions

Conclusion: Navigating Transfer Tax Uncertainty in San Diego County

The January 2026 cancellation of San Diego County's proposed 55x transfer tax increase brought relief to homeowners across all price ranges. The $60,200 that would have been added to a median home sale represented a dramatic escalation that lacked political support once it became public.

However, luxury property owners face a different calculation. With Board Chair Terra Lawson-Remer's indication that targeted taxes on "mansions worth five or ten million dollars or more" remain under consideration, and LA County's Measure ULA providing a proven template, the possibility of future luxury transfer taxes is real.

For owners of high-value properties in La Jolla, Del Mar, Rancho Santa Fe, and other premium San Diego County markets, this creates a complex timing decision:

• Current transfer taxes remain at historically low levels ($0.55 per $500)
• The luxury market showed strong appreciation in 2025 (8.5% year-over-year)
• A future ballot measure could add $200,000-$1,000,000+ in transaction costs
• The ballot measure timeline provides 13-26 months of advance warning
• Cash sales offer guaranteed timing in case of policy changes

Whether you choose to sell now, wait and monitor the political situation, or pursue a hybrid strategy, understanding the transfer tax landscape empowers you to make informed decisions aligned with your financial objectives.

At San Diego Fast Cash Home Buyer, we're here to provide fast, fair cash offers whenever timing matters—whether that's driven by transfer tax concerns, estate planning needs, market timing considerations, or simply your desire for a quick, certain transaction.

The cancelled $60,200 transfer tax proposal is dead. But the conversation about luxury property taxation in San Diego County is just beginning.

This article is for informational purposes only and does not constitute tax, legal, or financial advice. Consult with qualified professionals regarding your specific situation.