How to Calculate Documentary Transfer Tax (DTT)

How to Calculate Documentary Transfer Tax (DTT): A Helpful Guide: Los Angeles County Edition 

Here at Countrywide Process, we record various legal documents, one of the primary documents being an Affidavit. More often than not, a Documentary Transfer Tax or DTT Form has to be presented alongside an Affidavit. You may be wondering what the Documentary Transfer Tax is and why it is a necessary form to include when submitting an electronic recording within any county, or in this case, within Los Angeles County. The Los Angeles County Registrar-Recorder/County Clerk states, “A Documentary Transfer Tax is imposed on all documents that convey real property.” The county or state governments enforce this fee, and the tax is commonly calculated coherently with “the sales price of the property.” The accumulated taxation amount is usually compensated during the electronic recording process. Documentary Transfer Tax is determined “when the value of the interest or property conveyed exceeds one hundred dollars ($100), at the rate of fifty-five cents ($0.55) for each five hundred dollars ($500), or fractional part thereof.” 

Each specific county location may have its specific tax rate fees and exemption statements that appeal to each area’s wants and needs. As a buyer or seller, it is essential to address these taxes because they will affect the amount of the real estate transaction. Depending on which state or county this taxation occurs in each area, the funds may go towards “local government services, infrastructure, or affordable housing initiatives.” 

Los Angeles County has rates that the buyer and seller must follow for the DTT; these rates fall under five cities: Culver City, Los Angeles, Pomona, Redondo Beach, and Santa Monica. The current rates are the following per Los Angeles County Registrar-Recorder/County Clerk:

Culver City

20

0.45% on amounts of $1,499,999 or less1.5% on amounts from $1,500,000 to $2,999,9993% on amounts from $3,000,000 to $9,999,9994% on amounts $10,000,000 and aboveSee https://culvercity.org/rptt for tax calculator and details.

Los Angeles (prior to 7/1/24)

44

0.45% on sales above $100 but not exceeding $5,000,000; or 4.45% on sales above $5,000,000 but below $10,000,000; or 5.95% on sales $10,000,000 and above https://finance.lacity.org/faq/real-property-transfer-tax-and-measure-ula-faq

Los Angeles (Effective 7/1/24)

44

$2.25 for each $500 or fraction thereof; AND EITHER4 Percent of the total transaction value of sales above $5,150,000 but less than $10,300,000; OR   5.5 Percent of the total transaction value of sales at or above $10,300,000.

Pomona

57

$2.20 (Per $1,000)

Redondo Beach

59

$2.20 (Per $1,000)

Santa Monica (prior to 3/1/23)

68

$3.00 (Per $1,000) on amounts $4,999,999 or less $6.00 (Per $1,000) on amounts $5,000,000 thru $7,999,999 $56.00 (Per $1,000) on amounts $8,000,000 and above

 HOW TO CALCULATE 

Before calculating the county DTT, one should know the tax rate for the county in which they will be purchasing or selling their home. The current tax rate in Los Angeles County (including the five mentioned cities) is 0.11% or $1.10 per $1,000 of the property’s sale or transfer value (or $0.55 per $500). When relevant to the situation, the tax rate may also be $2.50 and $4.50 per $1,000 of the sale price, in addition to the county tax, when the property is within the City of Los Angeles limits. First, the county tax must be rounded up to the property value of the nearest $500 and multiplied by 0.11%. Next, the city tax must be divided by the property value ($1,000) and multiplied by the city’s rate ($1.10). Finally, county and city taxes are added to determine the total documentary transfer tax when applicable.

How to calculate:

• County DTT = (Sale Price ÷ 1,000) × $1.10
• City DTT (if within Los Angeles city) = (Sale Price ÷ 1,000) × $4.50
• Total DTT = County DTT + City DTT (if applicable)

Example 1: Property in Los Angeles County (outside Los Angeles City)

• Property Sale Price: $800,000
• Only County Tax Applies (because it’s outside the city of Los Angeles)

Calculation:

1. County DTT:applicable
   • $800,000 ÷ 1,000 = 800
   • 800 × $1.10 = $880 (County tax only)

Total Documentary Transfer Tax:

• $880

Example 2: Property in Los Angeles City

• Property Sale Price: $1,500,000
• Both County and City Tax Apply (because it’s within the city limits of Los Angeles)

Calculation:

1. County DTT:
   • $1,500,000 ÷ 1,000 = 1,500
   • 1,500 × $1.10 = $1,650
2. City DTT:
   • $1,500,000 ÷ 1,000 = 1,500
   • 1,500 × $4.50 = $6,750

Total Documentary Transfer Tax:

• County DTT ($1,650) + City DTT ($6,750) = $8,400

INCLUDE FORMS AND LINKS 

For more information on the Documentary Transfer Tax, please look at the following links:

• Los Angeles Declaration of Documentary Transfer Tax Form: https://www.lavote.gov/documents/Declaration_Doc_Transfer_Tax.pdf
• Los Angeles County Registrar-Recorder/County Clerk: https://www.lavote.gov/home/recorder/property-document-recording/documentary-transfer-taxes
• Culver City Tax calculator details: https://culvercity.org/rptt 
• Los Angeles Real Property Transfer Tax and Measure: https://finance.lacity.org/faq/real-property-transfer-tax-and-measure-ula-faq
• Exemption Statements: https://www.lavote.gov/docs/rrcc/documents/documentary-transfer-tax-statutes.pdf?v=2