Probate Costs and Taxes in San Francisco

The main costs of a California probate

Statutory executor and attorney fees

California sets the ordinary compensation for both the personal representative and the estate's attorney using the same schedule. Each is calculated separately on the value of the estate. ^{3, 4}

Important: the fee is based on the estate's value without subtracting mortgages or other debts. ^{3, 4} A San Francisco house worth $1,500,000 with a large mortgage still generates fees on $1,500,000.

Example: an estate valued at $1,000,000 produces a statutory fee of $23,000 for the executor ($4,000 + $3,000 + $16,000) and a separate $23,000 for the attorney.

San Francisco transfer tax on a probate sale

Inheriting a property generally triggers no San Francisco transfer tax, as long as nobody paid anything for it. ¹³ When the estate sells a property to a buyer, transfer tax applies at the standard city rates. ¹²

Example: a $1,500,000 sale falls in the 0.75% tier, so the city transfer tax is $11,250.

A measure on the November 3, 2026 San Francisco ballot (Proposition I) proposes changes to how the two highest tiers are structured. The voter guide states it would not increase the tax rate above what is charged today. ¹⁴ Check the city's transfer tax page for the current rates at the time of sale. ¹²

Property tax: reassessment after death

When a San Francisco property owner dies, the death is a change in ownership, and the property can be reassessed as of the date of death. ¹⁵

• File form BOE-502-D, Change in Ownership Statement, Death of Real Property Owner, with the SF Assessor-Recorder within 150 days of the date of death. If the estate is probated, it is filed when the inventory and appraisal is filed. ^{15, 16}
• Penalty for not filing: $100 or 10% of the taxes on the new base year value, whichever is greater, capped at $5,000 if the property qualifies for the homeowners' exemption or $20,000 if it does not (when the failure was not willful). ¹⁵
• Trust property: for property held in a trust, the reassessment date is the date of death, not the date the property is later distributed. ¹⁵

Proposition 19: inheriting a parent's home

Proposition 19 lets children (and in some cases grandchildren) avoid a full reassessment when they inherit a parent's family home, but only if it becomes the heir's principal residence and they file for the homeowners' exemption within one year. ^{17, 18}

• Value limit: the exclusion covers the existing taxable value plus an adjusted amount, currently $1,044,586 for transfers from February 16, 2025 through February 15, 2027. Value above that is added to the taxable value. ¹⁷
• Rental property does not qualify. The State Board of Equalization states that a transfer of a rental home between parents and children does not qualify for the exclusion. Prop 19 is limited to a family home that becomes the child's principal residence, or a family farm. ¹⁷
• Moving out ends it. If no eligible heir continues to live in the home as their principal residence, the property is reassessed. ¹⁷

This is one reason many San Francisco estates holding rental buildings decide to sell: the heirs would not keep the decedent's lower property tax base.

Income tax: stepped-up basis

For federal income tax purposes, the basis of inherited property is generally its fair market value on the date of death. ¹⁹ If the estate or heirs sell soon after death at a price close to that value, the taxable gain is often small. The probate referee's appraisal and a broker's opinion of value can both help document the date-of-death value. Speak with a tax professional before selling.

Estate and inheritance tax

• California has had no estate tax for deaths on or after January 1, 2005, and its inheritance tax applies only to deaths before June 8, 1982. ²⁰
• Federal estate tax: the basic exclusion amount is $15,000,000 per person for 2026. Most estates are below this level. ²¹
• Final income tax returns for the decedent, and any estate income tax returns, are still required. The California Franchise Tax Board explains the executor's filing duties. ²²

Ways estates commonly reduce costs

• Using a living trust during life, which avoids probate fees for trust property. ²³
• Checking whether a simplified small estate or primary residence procedure applies. See What Is Probate?.
• Requesting full IAEA authority, which avoids a confirmation hearing for a real estate sale. ²⁴

Sources

1. California Probate Code §8121leginfo.legislature.ca.gov
2. California Probate Code §10300leginfo.legislature.ca.gov
3. California Probate Code §10800leginfo.legislature.ca.gov
4. California Probate Code §10810leginfo.legislature.ca.gov
5. California Probate Code §10801leginfo.legislature.ca.gov
6. California Probate Code §10811leginfo.legislature.ca.gov
7. California Probate Code §8961leginfo.legislature.ca.gov
8. California Probate Code §8963leginfo.legislature.ca.gov
9. California Probate Code §8481leginfo.legislature.ca.gov
10. California Probate Code §10161leginfo.legislature.ca.gov
11. San Francisco Superior Court, Local Rules of Court, Rule 14.33sf.courts.ca.gov
12. SF.gov, Transfer tax (rates)sf.gov
13. SF Assessor-Recorder, "Learn about transfer tax"sf.gov
14. San Francisco Department of Elections, Voter Information Pamphlet, November 3, 2026media.api.sf.gov
15. SF Assessor-Recorder, "A guide to property matters following an owner's death"sf.gov
16. California Revenue and Taxation Code §480leginfo.legislature.ca.gov
17. California State Board of Equalization, Proposition 19boe.ca.gov
18. California Revenue and Taxation Code §63.2leginfo.legislature.ca.gov
19. IRS Publication 551, Basis of Assetsirs.gov
20. California State Controller's Office, Estate Taxsco.ca.gov
21. IRS, "What's new: Estate and gift tax"irs.gov
22. California Franchise Tax Board, "Deceased person (Decedent)"ftb.ca.gov
23. San Francisco Superior Court, Trustssf.courts.ca.gov
24. California Probate Code §10503leginfo.legislature.ca.gov
25. Judicial Council of California, Statewide Civil Fee Schedule (effective January 1, 2026)courts.ca.gov