Buying a Home in San Francisco: Transfer Tax Tiers, Rent Rules & Soft-Story Retrofit

San Francisco is city and county combined — its transfer tax is the steepest in the state, and TICs exist because condo conversion is capped by lottery.

San Francisco is a consolidated city and county — the only one in California — so "San Francisco County" and "the City of San Francisco" are the same government and the same transfer-tax jurisdiction. Its buyer-relevant quirks are correspondingly city-wide: the steepest transfer tax in the state, one of the strongest rent ordinances, a mandatory soft-story seismic retrofit program, and a distinctive Tenancy-in-Common (TIC) market that exists specifically because condo conversion is capped by lottery.

What’s the transfer tax in San Francisco County?

San Francisco has its own steeply tiered transfer tax, far above the state's $1.10-per-$1,000 base rate, applied to the entire sale price at whichever tier it falls into — not a marginal calculation.

Six tiers: $100–$250,000 at 0.5%; $250,001–$999,999 at 0.68%; $1,000,000–$4,999,999 at 0.75%; $5,000,000–$9,999,999 at 2.25%; $10,000,000–$24,999,999 at 5.5%; $25,000,000+ at 6%. A $1.2M sale is taxed at 0.75% of the full amount — $9,000 — not a blended rate. A February 2026 proposal (the "BUILD Act") would reduce rates on $10M+ transactions but had not passed as of this writing and does not affect typical purchases. Exemptions exist (spousal transfers, gifts, qualifying entity transfers) but require documentation filed at recording.

Who pays what at closing?

City transfer tax (0.5%–6%, tiered by price)

Seller, by local custom

“Custom” means convention, not law — every line item above is negotiable in your purchase contract.

Does San Francisco's Rent Ordinance affect the home I'm buying?

Only if you plan to rent out a unit in an older multi-unit building — single-family homes, condos, and townhouses are fully exempt from the Rent Ordinance regardless of age.

Units first occupied after June 13, 1979 get a partial exemption — no cap on rent increases, but just-cause eviction protections have applied since 2020. Buildings occupied before June 13, 1979 are the ones with actual rent-increase caps — check occupancy history before assuming market-rate flexibility if you're buying a small multi-unit building to rent out.

Does my building need a mandatory seismic retrofit?

Possibly — San Francisco's Mandatory Soft Story Retrofit Program (Ordinance 66-13, 2013) covers wood-frame buildings with 5+ residential units, 2+ stories over a soft/weak ground story, permitted before January 1, 1978.

Roughly 4,900 buildings citywide fall under the program. The Department of Building Inspection maintains a public map of every identified building and its compliance status — check it before buying this type of building rather than assuming compliance, since an unretrofitted building may carry a pending mandatory deadline and cost.

Do I need a sewer lateral inspection before closing in San Francisco?

No — unlike some neighboring cities (e.g. South San Francisco), San Francisco proper has no mandatory sewer-lateral inspection or certificate required at point of sale.

Owners own the full lateral out to the main, but SFPUC will repair or replace the curb-to-main section for free in most structural-defect cases. Don't assume a point-of-sale requirement that doesn't actually apply here.

What is a TIC, and why is it so common in San Francisco?

A Tenancy in Common lets a buyer purchase an undivided percentage interest in a multi-unit building with exclusive occupancy of a specific flat, typically priced 10-20% below an equivalent condo.

TICs are common here specifically because San Francisco's condo-conversion lottery caps conversions at 200 units per year citywide, and buildings over 6 units can't convert to condos at all — so most small multi-unit buildings can never legally become condos. TIC buyers need specialized fractional loans (rates typically 0.5-1% above condo rates, 25-30% down common) from a small pool of local lenders, and should plan on permanent TIC status rather than banking on a future conversion.

Disclosure landscape

Buildings occupied before June 13, 1979 are subject to the Rent Ordinance's increase caps if any unit is rented out — confirm occupancy history before assuming market-rate flexibility.
Pre-1978 wood-frame buildings with 5+ units and a soft ground story may be on DBI's mandatory soft-story retrofit list — check the public compliance map before assuming no seismic work is pending.
A TIC purchase is not a condo — financing, resale, and legal structure differ meaningfully; confirm which one you are actually buying.

Frequently asked

How much is San Francisco transfer tax on a typical home purchase?

It depends which tier your price falls into — e.g. 0.68% of the full price for a $250,000–$999,999 sale, or 0.75% for $1M–$4.99M — applied to the whole amount, not a blended rate.

If I buy a pre-1979 San Francisco building to live in, does rent control affect me?

Only if you rent out a unit — single-family homes, condos, and townhouses are fully exempt from the Rent Ordinance regardless of age; it's multi-unit rental buildings occupied before mid-1979 that face rent-increase limits.

Is a TIC a bad idea in San Francisco?

Not inherently — it's often the only realistic path into a small multi-unit building given the city's 200-unit-per-year condo-conversion cap — but budget for higher-rate fractional financing and plan to hold long-term rather than counting on conversion.

Sources

This is educational guidance, not legal advice. Consult a California real estate attorney for legal questions specific to your transaction.