The Solano County transfer tax is $0.55 for every $500 of value that changes hands when real property is sold or otherwise conveyed, a rate set by California Revenue and Taxation Code Section 11911.1California Legislative Information. California Code Revenue and Taxation Code 11911 That works out to $1.10 per $1,000 of taxable value. Sales inside the City of Vallejo carry a much higher combined rate because Vallejo layers its own conveyance tax on top of the county’s. The tax applies to any deed transferring ownership when the consideration exceeds $100.
Rates Inside and Outside Vallejo
Everywhere in Solano County, the base rate is $0.55 per $500, or $1.10 per $1,000. That rate applies countywide, including within incorporated cities.
Vallejo is the exception. As a charter city, it imposes an additional real property conveyance tax of $1.65 per $500 of value, or $3.30 per $1,000.2Municode. Vallejo Municipal Code Chapter 3.10 – Real Property Conveyance Tax Because Vallejo’s rate exceeds what state law allows the county to credit back, the county tax is not offset.1California Legislative Information. California Code Revenue and Taxation Code 11911 Both are owed. Combined, a Vallejo sale is taxed at $2.20 per $500, or $4.40 per $1,000.
How to Calculate What You Owe
The taxable amount is the full purchase price minus any liens or encumbrances the buyer takes on rather than pays off. If a buyer assumes the seller’s existing $100,000 mortgage instead of paying that amount in cash, that $100,000 is subtracted before the tax is figured.1California Legislative Information. California Code Revenue and Taxation Code 11911 Only the equity actually changing hands is taxed.
To calculate, divide the taxable value by $500, round up if there’s any partial unit, and multiply by $0.55. On a $500,000 sale outside Vallejo with no assumed loan, that’s 1,000 units × $0.55 = $550. The same sale inside Vallejo adds $1,650 in city tax (1,000 × $1.65), for $2,200 total.2Municode. Vallejo Municipal Code Chapter 3.10 – Real Property Conveyance Tax
A few common price points outside Vallejo:
- $350,000 sale: 700 × $0.55 = $385
- $500,000 sale: 1,000 × $0.55 = $550
- $750,000 sale: 1,500 × $0.55 = $825
Prices that fall between $500 increments round up. A $502,000 sale is taxed on 1,004 complete $500 units plus one partial unit, for 1,005 units total.
Who Pays the Tax
California law doesn’t assign the transfer tax to either the buyer or the seller. It’s negotiable, and the purchase agreement controls. In practice throughout Solano County, the seller customarily pays it as a closing cost. Buyer-paid transfer tax is the exception. Whatever the parties agree to should be written into the escrow instructions so the title company knows which side to charge at closing.
Exemptions That Bring the Tax to Zero
California Revenue and Taxation Code Sections 11921 through 11930 exempt several categories of transfers from the documentary transfer tax. The commonly used ones:
- Deeds dividing community property between spouses under a divorce, legal separation, or nullity judgment. The deed must include a signed statement by either spouse claiming the exemption.3California Legislative Information. California Code Revenue and Taxation Code 11927
- Gifts made during the owner’s lifetime and transfers to heirs at death, whether directly or into a trust for their benefit.4California Legislative Information. California Code Revenue and Taxation Code 11930
- Transfers of property into your own revocable living trust for estate planning. No consideration changes hands, so no tax applies.4California Legislative Information. California Code Revenue and Taxation Code 11930
- Deeds conveying property to a lender or beneficiary under a deed of trust in a foreclosure, under Section 11926.
- Transfers made under a confirmed Chapter 11 bankruptcy reorganization plan, which federal law preempts from local transfer tax.5Office of the Law Revision Counsel. 11 U.S. Code 1146 – Special Tax Provisions
An exempt deed has to cite the specific Revenue and Taxation Code section that applies, and the citation belongs on the face of the document near the transfer tax declaration. Without it, the Solano County Recorder can reject the filing or charge the full tax.
Recording Fees Charged at the Same Time
Two forms accompany the deed. The first is the documentary transfer tax declaration, printed on the face of the deed itself and signed. If the transfer is exempt, that declaration must state $0 and cite the code section. The second is a Preliminary Change of Ownership Report (PCOR, form BOE-502-A), which tells the county assessor about the sale so it can decide whether to reassess under Proposition 13.6Solano County. Assessor Frequently Asked Questions Filing the PCOR at recording is technically optional, but skipping it adds a $20 fee.7Solano County. Recording Fees
Solano County recording fees themselves:7Solano County. Recording Fees
- First page of the deed: $13
- Each additional page: $3
- Real estate fraud prosecution fund fee: $10
- Survey monument preservation fund: $10 (most ownership-transfer deeds; quitclaim deeds and easements are excluded)
- PCOR penalty if not filed at recording: $20
A typical two-page deed filed with a PCOR runs roughly $39 in recording fees on top of any transfer tax owed.
Federal Income Tax Treatment
The transfer tax is not deductible as a real estate tax on your federal return.8Internal Revenue Service. Publication 530, Tax Information for Homeowners The IRS lists transfer taxes and stamp taxes as non-deductible under that category.
It still matters at tax time, though. A seller who paid the tax treats it as a selling expense, reducing the taxable gain on the sale. A buyer who paid it adds the amount to the property’s cost basis, reducing the taxable gain whenever the property is later sold.9Internal Revenue Service. Publication 523, Selling Your Home Either way, the transfer tax cuts capital gains exposure. Just on different line items depending on who wrote the check.