San Diego County Cancels $60,200 Transfer Tax Proposal
TL;DR: Transfer Tax Proposal Cancelled, But Future Risks Remain
San Diego County cancelled a devastating transfer tax increase on January 7, 2026 that would have added $60,200 to the sale of a median-priced home. While this immediate threat is eliminated, Supervisor Terra Lawson-Remer confirmed a targeted luxury home tax on properties worth $5M+ remains on the table for future ballot measures. For La Jolla, Del Mar, and Rancho Santa Fe homeowners, timing your sale could become strategic.
San Diego County homeowners dodged a massive tax increase in January 2026 when county officials abruptly cancelled a lobbying effort to raise real estate transfer taxes from $0.55 to $30.55 per $500 of property value. The proposal would have added $60,200 in transfer taxes to the sale of a median-priced $985,000 home.
But while this dramatic 55-fold increase has been shelved for now, San Diego County Supervisor Terra Lawson-Remer confirmed that a targeted luxury home tax on properties worth "five or ten million dollars or more" remains on the table as a future ballot measure. For homeowners in La Jolla, Del Mar, Rancho Santa Fe, and other high-value markets, timing your sale could become a strategic decision.
What Happened: Timeline of the Cancelled Proposal
On December 18, 2025, San Diego County issued a request for quotes seeking a "contractor with vast political knowledge" to lobby Sacramento for authority to dramatically increase transfer taxes. The draft contract revealed supervisors wanted state lawmakers to allow counties to raise taxes on real estate sales from $0.55 to $30.55 for every $500 in value—a 5,400% increase.
Republican Supervisor Jim Desmond denounced the proposal on social media, calling it a "quiet effort to raise taxes." Less than three weeks later, on January 7, 2026, the county cancelled the lobbying request following public backlash.
Future Ballot Measures: Luxury Homes at Risk
While the blanket tax increase is dead, a more targeted approach focused on luxury properties remains viable. This would mirror Los Angeles's Measure ULA, which imposes transfer taxes of:
- 4% on properties over $5 million (up to $10 million)
- 5.5% on properties over $10 million
Under current San Diego County rules, transfer taxes are calculated at $0.55 per $500 of property value. On a $5 million luxury home, that's just $11,000 in transfer taxes. If San Diego adopted LA's Measure ULA structure, that same home would face $200,000 in transfer taxes—an increase of $189,000.
For a $10 million estate, the jump would be even more dramatic: from $22,000 currently to $550,000 under a 5.5% rate. LA's mansion tax has raised $830 million since 2023 but also caused high-value property sales to fall by 50% compared to surrounding areas.
Cash Sales: Speed Advantage When Timing Matters
When facing policy uncertainty, speed matters. Traditional home sales take 30-60 days from offer to close, but cash transactions can close in 7-14 days. For luxury sellers in La Jolla, Del Mar, or Rancho Santa Fe, this speed advantage provides a critical window:
- Close before ballot measures: If a luxury transfer tax appears on the November 2026 ballot, cash sellers can complete transactions before voter approval
- Eliminate financing contingencies: Cash sales remove appraisal and loan approval risks that can delay traditional closings
- Lock in current rates: Complete your sale at today's $0.55 per $500 rate before any policy changes
For homeowners monitoring San Diego County's evolving transfer tax landscape, cash sale options provide "policy timing insurance"—the ability to execute quickly when favorable market conditions or tax policies exist.
Frequently Asked Questions
What is the current San Diego County transfer tax rate?
San Diego County currently charges $0.55 per $500 of property value (or $1.10 per $1,000). On a $985,000 median home, this equals approximately $2,167 in county transfer taxes. This rate has remained unchanged for decades and applies to all property sales in unincorporated San Diego County.
Could the transfer tax be proposed again?
Yes. While the broad $60,200 proposal was cancelled, Supervisor Terra Lawson-Remer confirmed that a targeted luxury home tax on properties worth $5-10 million or more remains on the table. Any new proposal would require California state legislative approval followed by a San Diego County voter ballot measure.
How do cash sales protect against tax changes?
Cash sales close in 7-14 days versus 30-60 days for traditional financed sales. This speed advantage allows sellers to complete transactions before potential ballot measures are voted on or implemented. Cash buyers also eliminate financing contingencies that can delay closings when policy changes are pending.
Sources & Citations
- San Diego Union-Tribune - San Diego County wanted new powers over real estate taxes. Now it's pulled the plug on that effort
- Voice of San Diego - County Halts Request for Lobbyists to Lay Groundwork for Tax Hikes
- Supervisor Jim Desmond - Stop the Massive New Transfer Tax
- Los Angeles Office of Finance - Real Property Transfer Tax and Measure ULA FAQ
- California YIMBY - How LA's Transfer Tax Cost Schools and Local Governments $25 Million in Lost Revenue