What Santa Cruz's Measure C Means for Homeowners, Buyers, and Sellers

The City of Santa Cruz has officially implemented Measure C, also known as the Workforce Housing Affordability Act of 2025. Beginning July 1, 2026, the measure introduces new local taxes that will help fund affordable housing initiatives and homelessness prevention programs throughout the city.

If you're planning to buy or sell real estate in Santa Cruz, here's a simple overview of what you should know.

What Is Measure C?

Measure C was approved by Santa Cruz voters to create a dedicated funding source for affordable housing. The revenue generated stays within the City of Santa Cruz and is legally restricted to housing-related programs, including workforce housing, affordable housing development, and homelessness prevention efforts. Independent oversight and audits are required to help ensure accountability.

What's Changing?

Starting July 1, 2026, two primary taxes take effect:

Annual Parcel Tax

Most property owners within the City of Santa Cruz will pay a $96 annual parcel tax as part of their regular property tax bill. Certain exemptions are available for qualifying low-income homeowners, low-income seniors, and nonprofit organizations.

Real Estate Transfer Tax

Properties sold for more than $1.8 million may be subject to a graduated transfer tax. The tax rate increases based on the property's sale price, while some exemptions may apply depending on the transaction.

Who Could Be Affected?

Measure C may impact:

• Current homeowners within the City of Santa Cruz
• Buyers evaluating future ownership costs
• Sellers of higher-value properties
• Real estate investors
• Developers and property professionals

Understanding these changes can help you better prepare for future real estate transactions.

Why Was Measure C Created?

The goal of Measure C is to address Santa Cruz's ongoing housing affordability challenges by creating a long-term local funding source. Revenue generated by the measure will support affordable housing projects and programs intended to assist local workers, seniors, veterans, people with disabilities, and individuals experiencing or at risk of homelessness.

Learn More from the Official Source

This article provides a high-level overview and is not intended as legal or tax advice. For the complete text of the measure, implementation details, exemptions, frequently asked questions, and official updates, visit the City of Santa Cruz's official Measure C page:

Official Measure C Information:
https://www.santacruzca.gov/Government/City-Departments/Finance/Licenses-Fees-and-Taxes/Measure-C-Workforce-Housing-Affordability-Act-of-2025

As always, if you're buying or selling real estate and have questions about how Measure C may affect your transaction, it's a good idea to consult with your real estate professional and tax advisor.

Source: City of Santa Cruz. Measure C: Workforce Housing Affordability Act of 2025. Official information, FAQs, tax rates, exemptions, and implementation details are available on the City of Santa Cruz website.