Mansion Tax (Measure ULA): Palo Alto vs San Jose
How do mansion tax (measure ula) rules compare between Palo Alto, CA and San Jose, CA?
Palo Alto has fewer restrictions than San Jose.
Palo Alto, CA
Santa Clara County
Santa Clara County has not adopted a Measure ULA-style mansion tax on high-value real estate transfers. The California Documentary Transfer Tax under Revenue and Taxation Code §11911 sets the baseline rate for SCC property conveyances.
View full Palo Alto rules →San Jose, CA
Santa Clara County
Measure E, approved by San Jose voters in 2020 and codified at SJMC 4.59, imposes a tiered real property transfer tax on sales above $2 million. Rates rise from $7.50 per $1,000 to $15 per $1,000, with revenue dedicated to affordable housing and homelessness prevention.
View full San Jose rules →Key Facts Comparison
| Fact | Palo Alto | San Jose |
|---|---|---|
| County mansion tax | None enacted | - |
| State transfer tax | $0.55 per $500 | - |
| Statute | Rev. & Tax Code §11911 | - |
| San Jose Measure E | 0.75%-1.5% over $2M | - |
| Recorder enforcement | §11932 deed refusal | - |
| Code | - | SJMC Chapter 4.59 |
| Threshold | - | $2 million sale price |
| Top rate | - | $15 per $1,000 above $10M |
| Approved | - | Measure E, March 2020 |
| Use | - | Affordable housing, homelessness |
Highlighted rows indicate differences between cities.
Palo Alto FAQ
Does Santa Clara County tax luxury home sales?
No countywide mansion tax exists. The state Documentary Transfer Tax of $0.55 per $500 applies. San Jose's Measure E adds 0.75%-1.5% on transfers above $2 million inside city limits only.
Who pays the Documentary Transfer Tax in SCC?
By custom in Northern California, the seller pays the transfer tax at recording. The County Clerk-Recorder collects payment before recording the deed. Buyer-seller allocation can be negotiated in the purchase contract.
San Jose FAQ
Does the Measure E tax apply to my $1.5 million home sale?
No. SJMC 4.59 only applies to San Jose property transfers of $2 million or more. Sales below that threshold pay only the standard Santa Clara County documentary transfer tax of 55 cents per $500.
Who pays the San Jose transfer tax, buyer or seller?
By local custom in Santa Clara County the buyer typically pays, but parties can negotiate otherwise in the purchase agreement. The tax is due at recording and is usually handled by the title or escrow company on the closing statement.
Does Measure E money have to fund housing?
Legally Measure E is a general tax usable for any city purpose, allowing simple-majority approval. The City Council separately committed by policy to spend the revenue on affordable housing, homelessness response, and tenant protections.
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