When you sell commercial property in California, a documentary transfer tax is charged on the sale price. Every county charges a base rate, and some cities add their own tax on top. In Alameda County, the difference between cities is large enough to change your net proceeds by tens of thousands of dollars.
The rates, city by city
Alameda County’s base rate is $1.10 per $1,000 of value. In general-law cities such as Fremont, that $1.10 is shared between the county and the city, so there is no extra cost. Charter cities like Hayward, San Leandro and Oakland add their own tax.
| City | Total per $1,000 | Tax on a $3M sale |
|---|---|---|
| Fremont | $1.10 | about $3,300 |
| Newark | $1.10 | about $3,300 |
| Union City | $1.10 | about $3,300 |
| Pleasanton | $1.10 | about $3,300 |
| Hayward | $9.60 ($8.50 city + $1.10 county) | about $28,800 |
| San Leandro | $12.10 ($11.00 city + $1.10 county) | about $36,300 |
| Oakland | $11.10 to $26.10, by price tier | about $55,800 |
How Oakland’s tiers work
Oakland charges a different rate depending on the sale price. Including the county’s $1.10, the totals are about $11.10 per $1,000 up to $300,000, $16.10 from $300,000 to $2 million, $18.60 from $2 million to $5 million, and $26.10 above $5 million. On a $6 million building, that is roughly $156,600 — compared with about $6,600 for the same price in Fremont.
Who pays it?
In residential sales there are local customs, but in a commercial transaction the transfer tax is a negotiable term. Sellers in high-tax cities often factor it into their asking price; buyers sometimes agree to split it. The important thing is to know the number before you set your price or sign a letter of intent, not at closing.
Does a 1031 exchange avoid transfer tax?
No. A 1031 exchange can defer capital gains tax, but the documentary transfer tax is still due on the sale. Plan for it in your exchange budget.
What this means if you are selling
- Get a net proceeds estimate that includes transfer tax, commission, title and escrow before choosing a price.
- In Hayward, San Leandro and Oakland, decide early whether you will ask the buyer to share the transfer tax.
- Confirm the exact amount with your title company — rates can change, and special rules can apply to certain transfers.
We are happy to prepare a free, confidential net sheet for your property. See our city guides for Fremont and Hayward.
Source: California City Finance, “California City Documentary and Property Transfer Tax Rates,” effective December 1, 2025. Dollar figures are rounded estimates. This is general information, not tax or legal advice; confirm with your title company and tax advisor.
