Buying or selling in Portola Valley and trying to pin down your closing costs? Transfer taxes and recording fees can feel opaque, especially on high‑value properties where small rates add up to big numbers. You want a clear, current answer so you can plan with confidence. Below, you’ll find what applies today, what might change, and how to estimate your bottom line. Let’s dive in.
What applies in Portola Valley today
In Portola Valley, the transfer tax you pay at closing is the San Mateo County documentary transfer tax. The county rate is $0.55 per $500 of the sale price, which equals $1.10 per $1,000, and it is collected when the deed is recorded. You can review the county’s rules and exemptions on the official San Mateo County Recorder page for the documentary transfer tax.
- Learn more: San Mateo County documentary transfer tax
Quick example
- $2,000,000 sale price → $2,200 county transfer tax.
- $5,000,000 sale price → $5,500 county transfer tax.
How the tax is calculated and collected
The basic formula
- County transfer tax = sale price × $1.10 ÷ 1,000.
- The tax is based on the consideration stated on the deed, with limited deductions allowed by statute.
When it is due
- The tax is due at recording. Your escrow and title team calculate it and collect it with the rest of your closing costs before submitting the deed to the County Recorder.
Required documents and common exemptions
- A Preliminary Change of Ownership Report (PCOR) usually accompanies the deed. The county uses it for assessment purposes.
- If you claim an exemption, the county requires a transfer tax declaration on the face of the document plus any supporting affidavit. Review details on the county’s page: documentary transfer tax and PCOR overview.
Who typically pays in San Mateo County
Payment is negotiable and set by your purchase agreement and escrow instructions. In San Mateo County, it is common for the seller to pay the county transfer tax, though parties may agree to another split. Confirm the allocation in writing early in escrow so there are no surprises at closing.
Other fees to expect at closing
Beyond the transfer tax, you will typically see these line items:
- Recording fees for the deed and any reconveyances. Amounts vary by document type and page count.
- The statewide SB 2 Building Homes and Jobs Act recording fee, commonly $75 when applicable. See the county’s notice: SB 2 fee and fee schedule updates.
- Title insurance premiums and escrow/title service fees.
- Prorated secured property taxes and any agreed credits or adjustments.
For recording steps and standards, visit: How to record a document in San Mateo County.
What could change in Portola Valley
Today, Portola Valley does not impose a separate town transfer tax. The Town Council has discussed becoming a charter city to gain authority to adopt a municipal real property transfer tax, which would require a ballot measure and voter approval. Public materials have referenced example rates ranging from a few dollars per $1,000 to about $8 to $10 per $1,000. Local coverage summarizes these discussions and timing considerations: The Almanac’s report on town budget and revenue options.
Why charter status matters: Under California Revenue and Taxation Code §11911, counties can impose the statutory documentary transfer tax and general law cities can adopt a conforming city share at up to one‑half the county rate. Charter cities can adopt non‑conforming real property transfer taxes if approved by voters. See the statute text: California Revenue & Taxation Code §11911.
Voter threshold depends on how any tax is structured. A “general” tax typically requires a majority vote, while a “special” tax that earmarks funds may require two‑thirds voter approval. For context, review the state’s guidance on local tax approvals under Proposition 218: Understanding Proposition 218.
Timing discussed publicly
Town materials and local reporting have referenced a possible November 2026 ballot as an earliest path, with implementation potentially beginning in 2027 if voters approve a measure. Monitor official town notices and ballots for any updates: Almanac coverage of timeline and revenue ideas.
Scenario planning and example estimates
These examples are illustrative. Your actual closing will reflect the exact taxes and fees in effect at that time.
County tax only (today’s status):
- $3,000,000 sale → $3,300 county transfer tax.
- $8,000,000 sale → $8,800 county transfer tax.
If a future town tax were adopted at $8 per $1,000, the additional town amount would be:
- $3,000,000 sale → $24,000 town tax.
- $8,000,000 sale → $64,000 town tax.
The allocation between county and town would depend on the structure of any future ordinance and whether it is a conforming or non‑conforming tax under applicable law.
How to prepare as a buyer or seller
- Ask escrow for an itemized estimate early. Include the county transfer tax, any city tax if applicable, recording fees, SB 2 fee, title insurance, and prorations.
- Confirm who pays each line item in the purchase contract and escrow instructions.
- If you qualify for a transfer tax exemption, provide documentation and complete the required declaration at recording.
- Build a cushion for rate changes or policy updates if your closing is far out on the calendar.
- Recheck estimates just before signing to avoid last‑minute surprises.
If you want a precise, confidential closing estimate for your specific property and timing in Portola Valley, reach out to Stephanie Elkins for guidance tailored to your sale or purchase.
FAQs
Does Portola Valley charge a separate town transfer tax right now?
- No. As of the latest reporting, Portola Valley relies on the San Mateo County documentary transfer tax at $1.10 per $1,000; see the county’s overview: documentary transfer tax.
If Portola Valley adopts its own transfer tax, when might it start?
- Public discussions have referenced a possible November 2026 ballot with implementation as early as 2027 if voters approve; see local coverage for context: Almanac report on budget and timeline.
Would a new town tax be on top of the county tax?
- It depends on the legal structure. Conforming city taxes share the statutory base under §11911, while charter city taxes can be non‑conforming and separately structured; see R&T Code §11911.
What is the SB 2 recording fee in San Mateo County?
- It is a statewide recording fee, commonly $75 when applicable, collected by the County Recorder; see the county’s notice: SB 2 fee information.
Who usually pays the transfer tax in San Mateo County?
- It is negotiable, but it is commonly paid by the seller in local practice; confirm the allocation in your contract and escrow instructions.
