Buying and Selling in Berkeley: What You Need to Know About the New Transfer Tax Increase on Properties Over $1.7M
Robert Jones • April 7, 2026
Buying and Selling in Berkeley: What You Need to Know About the New Transfer Tax Increase on Properties Over $1.7M
Berkeley has made an important change to its city transfer tax, and if you’re buying or selling here, it needs to be part of your math from day one. The city transfer tax is a closing cost based on the purchase price, and it’s still typically split 50/50 between buyer and seller, unless the contract says otherwise. For properties selling up to 1.7M, the rate is now 15 dollars per thousand of the purchase price. That sounds small, but it adds up quickly and should be baked into your net‑sheet as a seller and your cash‑to‑close as a buyer.
Where things really shift is once you cross that 1.7M threshold. Above 1.7M, Berkeley’s city transfer tax jumps to 25 dollars per thousand of the purchase price, again typically divided 50/50 between buyer and seller. That means a higher‑end transaction can carry a noticeably larger tax bill at closing than a home that sells just under 1.7M. As we get close to that price point, I’m talking very directly with clients about how this impacts closing costs. It’s a strategic conversation, not an afterthought.
For sellers, this change directly impacts your net proceeds and your pricing strategy. On a home that could reasonably sell just below or just above 1.7M, we’ll look at both scenarios side by side: what you walk away with after the 15‑per‑thousand tax versus the 25‑per‑thousand tax. Sometimes, it absolutely still makes sense to push higher because the additional sale price more than covers the higher tax. Other times, targeting a price that keeps you under that 1.7M mark can mean a cleaner, more attractive number for buyers and a better net for you after closing costs.
For buyers, this is one more reason not to shop purely by list price. When we’re writing offers in Berkeley, especially near 1.7M, I’ll show you the total picture: your down payment, loan costs, and your share of the city transfer tax at either 15 or 25 per thousand. Understanding that delta can influence how aggressively you want to bid, or whether a home just over 1.7M still fits comfortably within your budget. If you’re thinking about a Berkeley move this year, let’s sit down, run your specific numbers, and make a plan so this tax change becomes something we use strategically—rather than a 'surprise' you find out about two days before closing.
