Selling a rental in the City of Sacramento costs the commission you negotiate, plus transfer taxes of $1.10 per $1,000 to the county and $2.75 per $1,000 to the city, escrow and title charges, your share of the property tax, and any repairs, credits or tenant costs. On the city's typical value of $470,552, the two transfer taxes total about $1,812. Separately, escrow usually holds back 3⅓% of the price, about $15,669, for California income tax unless you qualify for an exemption.
You own a rental house in the Sacramento area and want to know, line by line, what comes out of the sale price before you see the check.
Costs to sell a Sacramento rental at a glance
| Commission | Negotiable; set in your listing agreement |
|---|---|
| Sacramento County documentary transfer tax | $0.55 per $500 ($1.10 per $1,000) |
| City of Sacramento transfer tax | $2.75 per $1,000, inside city limits only |
| Other cities in Sacramento County | No separate city transfer tax |
| Property tax year | July 1 to June 30; prorated to the closing date |
| Form 593 withholding | 3⅓% of the price, a prepayment of California tax, unless exempt |
What it costs to sell a rental in Sacramento
Some lines are true costs that leave your pocket for good. Others, like the loan payoff and the Form 593 withholding, reduce the cash at closing but aren't costs: one repays your own debt and the other prepays your own tax. Keep them in separate columns or the sale looks worse than it is.
| Line on a Sacramento rental sale | Cost or cash item | Who customarily pays |
|---|---|---|
| Commission | Cost | Seller, at the rate you negotiate |
| County documentary transfer tax | Cost | Seller by custom |
| City of Sacramento transfer tax | Cost | Split buyer and seller by custom |
| Escrow fee and owner's title policy | Cost | Seller by custom in Sacramento County |
| Property tax proration | Cost (your share) | Each side pays its days |
| Repairs, credits, tenant costs | Cost | Seller, as negotiated |
| Mortgage payoff | Cash item | Seller |
| Form 593 withholding | Cash item (tax prepayment) | Seller |
"By custom" means what's usual, drawn here from a 2026 California customary practices guide published by Fidelity National Title. Custom isn't law. The Sacramento County recorder says the documentary transfer tax can be paid by either the buyer or the seller by mutual agreement, and every line in this table can be negotiated in the purchase contract.
Commission when you sell a Sacramento rental
Listing commission is negotiable in Sacramento
No law or board sets a commission rate in Sacramento. It's whatever you and your listing agent agree to in the listing agreement, and it's usually the largest single cost of the sale. On $470,552, each 1% of commission is $4,706, so a half-point difference is worth about $2,350 to you. Ask any agent what the fee covers: pricing, photos, showings with a tenant in place, negotiation and managing escrow.
Buyer's agent compensation on a rental sale
Whether you offer to pay part of a buyer's agent's fee is a separate decision, also negotiable. Buyers of occupied rentals are often investors, so talk through who the likely buyer is before you decide. A buyer may also ask for a credit toward their own costs as part of the offer.
Commission on a cash sale of a rental
Selling directly to a cash buyer can avoid a commission, but cash buyers usually price that in. The comparing a cash offer with a listing shows how to compare a net offer with a listed sale.
Sacramento transfer taxes when you sell
Transfer tax is charged when the deed is recorded. In the City of Sacramento you pay two separate taxes; everywhere else in the county you pay one.
Sacramento County documentary transfer tax
The county's rate is $0.55 for each $500 of value, or fraction of $500, less any loans the buyer assumes. That's $1.10 per $1,000. On a $470,552 sale with no assumed loan, it's 942 units of $500, or $518.10. The title-industry guide lists the seller as the customary payer in Sacramento County.
City of Sacramento real property transfer tax
Inside the City of Sacramento's limits, the city charges its own transfer tax under City Code chapter 3.16, at $2.75 per $1,000 of the full purchase price. To calculate it, multiply the price by 0.00275: $470,552 comes to $1,294.02. The customary split in the title-industry guide is half each, so the seller's share would be $647.01. The city's revenue division says the tax can be charged to either party by agreement, but if escrow doesn't collect it, the city looks to the buyer.
Sacramento County cities with no city transfer tax
The county recorder says only the City of Sacramento has its own transfer tax in Sacramento County. Citrus Heights, Elk Grove, Folsom, Galt, Isleton and Rancho Cordova charge none, and neither do unincorporated areas such as Carmichael, Fair Oaks and Orangevale. A Rancho Cordova sale pays the county tax alone; see selling a rental in Rancho Cordova for the city's own rental registration. Those sales pay the county's $1.10 per $1,000 only. West Sacramento and Roseville sit in Yolo and Placer counties: selling a West Sacramento rental covers the Yolo County transfer tax and recording, and selling a rental in Roseville covers Placer County.
Escrow, title and closing costs when you sell a rental
Escrow fee on a Sacramento rental sale
The escrow company holds the money and documents and closes the sale. Its fee varies by company and price, so get a quote. The 2026 title-industry guide lists the seller as the customary payer of escrow charges in Sacramento County, though the parties can agree otherwise.
Owner's title policy: a Sacramento closing cost
The owner's title policy protects the buyer against title defects. The same guide lists the seller as the customary payer in Sacramento County. The buyer's lender's policy is the buyer's cost. Ask the title company for the premium on your price.
Sacramento County property tax proration
The county tax bill covers a fiscal year from July 1 to June 30. Bills go out by November 1, the first installment is due by December 10 and the second by April 10. Escrow splits the year at the closing date: you pay for the days you owned the house, the buyer pays the rest. If the bill hasn't been paid when you close, escrow pays it and charges your share; if you've paid ahead, the buyer credits you.
Mortgage payoff on the rental property
Escrow orders a payoff statement from your lender showing the balance plus interest to the payoff date. It's not a selling cost, but it decides how much cash you walk away with. A private loan or a line of credit secured on the house is paid off the same way.
How the bill itself is set, and why a buyer's will be higher, is in the Sacramento County property tax guide.
Repairs and credits when you sell a rental
Repairs on a rental before you sell
Turnover wear, deferred maintenance and anything that would scare a lender cost you before listing or in price after. Fix what blocks financing or a clean inspection; leave cosmetic projects for a buyer who'll redo them anyway. Ask your agent which repairs pay back in your price range.
Buyer credits after the rental property inspection
After inspections, buyers often ask for repairs or a credit at closing. A credit is a reduction in your proceeds, and it's often simpler than doing work with a tenant still living there.
Tenant costs when you sell an occupied or vacant rental
Vacancy cost while the rental is on the market
If you sell vacant, every month empty costs rent. At Sacramento's typical asking rent of $2,045 a month (Zillow, September 2026), two months of vacancy is about $4,090 before utilities, insurance and yard care. Metro homes took about 45 days to go pending in September 2026, and closing takes more time after that.
Cash for keys to end the tenancy
Paying a tenant to move out by an agreed date can be faster than notice. There's no standard amount, and the agreement should be in writing. The cash for keys guide covers how those agreements work.
Notice and relocation costs when the tenant leaves
Ending a tenancy to sell follows California notice rules, and a no-fault termination can carry relocation assistance. The rules and timelines are in the notice to vacate guide. If you keep the tenant, there's no vacancy cost, and the deposit and lease pass to the buyer; see selling with tenants in place.
Form 593: cash escrow holds back when you sell
FTB Form 593 withholding of 3⅓%
California requires withholding when real estate is sold. Escrow withholds 3⅓% of the sale price, sends it to the Franchise Tax Board, and you claim it as a credit on your California return. On $470,552 that's $15,669. It's a prepayment of your own tax, so it isn't a selling cost, but it isn't in your check either.
Form 593 exemptions for a rental sale
No withholding applies if the price is $100,000 or less, the property is in foreclosure, the house was last used as your principal residence, the sale is at a loss or zero gain, or it's part of a valid 1031 exchange (boot over $1,500 is still withheld). You certify the exemption on Form 593 before closing; after closing you can only recover it on your tax return.
Form 593 alternative withholding on the gain
Instead of 3⅓% of the price, you can elect withholding on your estimated gain, at 12.3% for an individual. It helps only when the gain is small. What you finally owe is covered in the capital gains tax on a California rental guide.
The capital gains calculator shows whether the 3⅓% covers your California tax.
Net sheet: what you keep when you sell a $470,552 Sacramento rental
A house at the city's typical value, inside city limits, closing on November 15, 2026. The labelled assumptions are placeholders to replace with your own quotes and statements, not Sacramento averages.
| Line | Amount | Basis |
|---|---|---|
| Sale price | $470,552 | Zillow typical value, September 2026 |
| County documentary transfer tax | -$518.10 | $0.55 per $500 |
| City transfer tax, seller's half | -$647.01 | $2.75 per $1,000, split by custom |
| Escrow fee and owner's title policy | -$3,500.00 | Assumption: get a quote |
| Property tax, July 1 to November 14 | -$1,201.10 | Assumption: $3,200 annual bill, 137 days |
| Inspection credit to buyer | -$5,000.00 | Assumption |
| Mortgage payoff | -$150,000.00 | Assumption: your payoff statement |
| Proceeds before commission and withholding | $309,685.79 | |
| Form 593 withholding, 3⅓% | -$15,669.38 | Credit on your California return |
| Cash at closing before commission | $294,016.41 | |
| Commission | -$4,705.52 per 1% | The rate you negotiate |
Read it this way: the fixed costs on this sale, before commission, total $10,866. Commission and the Form 593 withholding are the big lines. Two variations change it. If the house were in Elk Grove or Folsom instead, you'd drop the city transfer tax and keep $647 more. If you sold it vacant after two months without rent, subtract about $4,090 of lost rent at the typical asking rent, plus the utilities and insurance you carry while it sits empty. And if the house was last your main home, a Form 593 exemption would put the $15,669 back in your check at closing instead of on next year's return. For a price built from your own street's sales, ask Justin for a rental home valuation.
Which closing costs reduce your tax when you sell a rental
Selling expenses such as commission, escrow and title charges you pay, transfer tax and legal fees come off the sale price to give the amount realized, so they reduce your taxable gain. FTB's Form 593 instructions list commissions, advertising, legal fees and seller-paid loan charges as selling expenses. Your share of the property tax up to closing is generally a rental expense for the year. The loan payoff and the Form 593 withholding aren't deductions. This is general information, not tax advice; ask a CPA how each line on your closing statement is treated. To defer the tax rather than pay it, read the 1031 exchange guide.
Checklist before you sell your Sacramento rental
- Confirm whether the house is inside City of Sacramento limits (two transfer taxes) or not (one).
- Get your mortgage payoff statement and this year's property tax bill.
- Ask escrow and title for quotes on your price.
- Decide whether you'll sell with the tenant in place or vacant, and price the vacancy.
- Check whether a Form 593 exemption applies, and if not, plan for 3⅓% held back.
- Negotiate the commission and get it in the listing agreement.
The rest of the process, from pricing to tenants to closing, is on the site's guide to selling a Sacramento rental.
An East Sacramento rental sale pays both the county and the city transfer tax.
Cost to sell a rental property in Sacramento: FAQs
How much are closing costs to sell a house in California?
There's no single figure, because commission is negotiable and transfer tax depends on the city. Every California county charges documentary transfer tax, usually $1.10 per $1,000, and some cities add their own. In the Sacramento example on this page, the costs besides commission came to $10,866 on a $470,552 sale, including a $5,000 repair credit and a placeholder for escrow and title.
What fees are deducted when selling a house?
Escrow deducts the commission, transfer taxes, the escrow fee and owner's title policy if you're paying them, your share of property tax, any repair credits, and the payoff of your mortgage. On a California sale, it also withholds 3⅓% of the price on Form 593 unless you're exempt. The withholding is a credit toward your California income tax, not a fee.
What is the transfer tax in Sacramento?
Sacramento County charges $0.55 per $500 of value, or $1.10 per $1,000. Inside the City of Sacramento, the city adds $2.75 per $1,000 of the full price, for a combined $3.85 per $1,000. On a $470,552 sale, that's $518.10 to the county and $1,294.02 to the city. Other cities in the county have no separate city tax.
Who pays transfer tax in Sacramento, the buyer or the seller?
By custom, the seller pays the county documentary transfer tax and the city tax is split between buyer and seller, according to a 2026 title-industry customary practices guide. That's custom, not law. The county says either party can pay by mutual agreement, and the city says that if the tax goes unpaid in escrow, it looks to the buyer.
What are typical real estate commissions in Sacramento?
There isn't a set or standard rate. Commission is negotiable and is whatever you and your listing agent agree to in the listing agreement. On a $470,552 sale, each 1% is $4,706, so compare what each agent's fee covers rather than the number alone. Whether you offer to pay part of the buyer's agent's fee is also negotiable.
How do I avoid capital gains when selling a house in California?
For a home you've lived in for two of the last five years, section 121 can exclude up to $250,000 of gain, or $500,000 for most couples. A rental doesn't get that exclusion, but a 1031 exchange into another investment property defers the tax. California has no lower capital gains rate, so planning before the sale matters more here.
Is the Form 593 withholding a cost of selling?
No. It's a prepayment of your California income tax on the sale. Escrow sends 3⅓% of the price to the FTB and you claim it as a credit on your return, so you get back anything above your actual tax. It still reduces the cash you receive at closing, so plan for it in your net.
Sources
- Sacramento County Clerk/Recorder: Documentary transfer tax FAQ
- City of Sacramento: Real property transfer tax
- Sacramento County Tax Collector: Secured taxes
- FTB: 2026 Form 593 instructions, real estate withholding
- FTB: Form 593 (alternative withholding rates)
- Fidelity National Title: 2026 California customary practices guide
- IRS Publication 527: Residential rental property (deductible rental expenses)
- IRS Publication 523: Selling your home
Reviewed by Justin Vierra
Justin reviewed this page for accuracy on October 28, 2026. Figures come from the sources listed above. Our research process.
Justin Vierra is a Sacramento Realtor® with GUIDE Real Estate and Principal of the Vierra Group who sells rental homes for their owners, with tenants in place or vacant. He spent six years in Midtown property management before he began selling homes in 2010.
- Since 2010Licensed in California, DRE #01880488
- 6 yearsManaging Midtown rental property before he sold homes
- 447Vierra Group team sales on Zillow, 26 in the past 12 months
- 440+Career sales, as reported by Justin
- Six years in property management: Midtown Sacramento: older buildings, multifamily property, maintenance and tenants
- Principal, Vierra Group: His team at GUIDE Real Estate, 3001 I Street, Sacramento
- Sacramento Real Producers: Top 250 agent for 2025, as reported by Justin
Realtor®, DRE #01880488. Vierra Group, GUIDE Real Estate, 3001 I St, Suite 200, Sacramento, CA 95816. General information, not legal, tax or financial advice.
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