Proposed Property Transfer Tax Increases Spark Concern Across San Diego County Housing Market

FOR IMMEDIATE RELEASE
Date: January 6, 2026

Proposed Property Transfer Tax Increases Spark Concern Across San Diego County Housing Market

Voters May Decide on Dramatic Increases to Documentary Transfer Tax in 2026

SAN DIEGO, CA — Significant proposals to increase property transfer taxes in San Diego County are drawing heightened attention from homeowners, real estate professionals, and housing advocates as county leaders explore new revenue measures that could dramatically raise the cost of selling property.

According to information released by the office of Jim Desmond, county officials are considering a proposal to raise the Documentary Transfer Tax (DTT) cap from its current level of $0.55 per $500 of property value to as much as $30.55 per $500 on high-value homes — an increase of nearly 5,000 percent. If approved, the change could add $50,000 or more in transfer taxes to certain real estate transactions.

County officials say the proposed increase is intended to generate additional revenue for public services. However, critics warn the tax could further strain housing affordability, discourage real estate transactions, and negatively impact the broader housing market.

In a separate effort, Supervisor Terra Lawson-Remer has advanced proposals aimed at raising up to $1 billion annually through increased transfer taxes to fund county services. Like the Desmond-highlighted proposal, this initiative would also require voter approval before taking effect.

Opponents of both measures argue that increasing transaction costs — particularly during a period of ongoing affordability challenges — could reduce housing supply, slow market activity, and place additional financial burdens on buyers and sellers alike.

“These proposals represent a fundamental shift in how real estate transactions are taxed in San Diego County,” said critics of the measures. “Voters will need to carefully weigh the long-term consequences for housing affordability, market stability, and economic mobility.”

If advanced, the proposals are expected to appear on the 2026 ballot, setting the stage for a high-profile public debate over housing policy, taxation, and local government funding priorities in the region.