08/13/2026
Most people think a REALTOR® works for you only when a deal is in motion. Here’s the other half of the job.
A bill in Sacramento, AB 736, would limit what cities can charge in local transfer taxes when a property changes hands. Beginning January 1, 2027, combined local transfer taxes could not exceed 1.5% of price or value, with existing general transfer taxes already in place as of June 30, 2026 allowed to remain at their current rate or 3%, whichever is lower. The bill states it does not increase or authorize any increase to a transfer tax rate.
That limit stops at single-family homes valued at $5,400,000 and above. Worth knowing: that mark isn’t frozen, but it rises with everyday consumer costs, not with home values. Two different speeds, and over time that matters.
Statewide numbers land differently inside our bubble. Reading what a bill actually says, then asking what it means on a specific South Bay street, is the work that happens quietly and constantly. C.A.R. (the California Association of REALTORS®) opposed this bill, and more than 12,000 REALTOR® calls reached legislators in just over 24 hours. It hasn’t passed, and it remains alive in a two-year session.
Separately, on the November 3, 2026 ballot, California voters statewide will decide a state constitutional amendment (ACA 22) on whether local special tax increases continue to require two-thirds voter approval.
Questions about what any of this means for your specific property? Always glad to talk it through.
Nick Phillips
Sources: California Legislature, AB 736 as amended June 22, 2026; California Secretary of State, certified November 3, 2026 ballot measures; California Association of REALTORS®, June 25, 2026. Informational only, not tax or legal advice. For your situation, consult your tax professional.
