What is real estate transfer tax?
Real estate transfer tax is a one-time tax on transferring property ownership, charged when the deed is recorded. It's one of the most location-dependent closing costs — here's how it works.
Last updated June 2026
When a home changes hands, the government records the new deed — and most states charge a tax on that transfer. It goes by many names: transfer tax, deed tax, conveyance tax, documentary stamp tax, or real-estate excise tax. Whatever it's called, it's typically a percentage of the sale price, and it can range from nothing to several percent depending on where you are.
How it's calculated
Most states charge a flat amount per $500 or $1,000 of the price. For example, $2 per $500 is the same as 0.4% of the price — on a $500,000 home, that's $2,000. Some states are graduated, with higher rates on higher-priced homes, and a few add a "mansion tax" surcharge on luxury sales (New York's applies from $1M up). Cities can stack their own tax on top: San Francisco, New York City, Chicago, and Philadelphia all do.
Who pays
This is set by state custom, not federal law. In most states the seller pays; several states split it between buyer and seller; and a few put it on the buyer. It's negotiable in the purchase contract, so the custom is a starting point rather than a rule. Where a mansion tax exists, it's usually the buyer's responsibility even if the base transfer tax is seller-paid.
Why it varies so much
Transfer tax is the closing cost with the widest spread in the country:
- No transfer tax: Texas, Alaska, Idaho, Indiana, Kansas, Mississippi, Missouri, Montana, New Mexico, North Dakota, Utah, Wyoming, and Louisiana (statewide).
- Very low: Colorado (0.01%), Georgia (0.10%), and several others under a quarter percent.
- High: Delaware (~4% combined), plus city surtaxes that push effective rates well above the state base in New York City and San Francisco.
Because these are statutory facts — not arithmetic you can safely guess — we cite the statute and official source for each rate and flag any figure we haven't yet verified.
Look up your rate
Pick your state (and county, where we have data) to see the rate, who pays, the statute, and what it costs on your price:
Estimated transfer tax
$2,800
Rate: 0.7% · Customarily seller-paid
- Who customarily pays
- seller
- Statute
- Fla. Stat. § 201.02
Florida levies documentary stamp tax on the deed at $0.70 per $100 of price (0.70%) in every county except Miami-Dade. Miami-Dade charges $0.60 per $100 (0.60%) plus a $0.45/$100 surtax on non-single-family transfers. By custom the seller pays the deed stamps; the buyer pays the separate doc-stamp + intangible tax on the mortgage.
Want the full picture? Transfer tax is just one line. Run the closing cost calculator to see it alongside title, recording, lender fees and prepaids — or browse transfer tax by state.
Frequently asked questions
What is transfer tax on a house?
It's a tax charged when ownership of real property is transferred and the deed is recorded. States call it transfer tax, deed tax, conveyance tax, documentary stamp tax, or excise tax. It's usually a percentage or per-$500 amount of the sale price.
Who pays the transfer tax?
It depends on state custom. In most states the seller pays; several states split it; a few put it on the buyer. It's also negotiable in the contract. Some high-value sales add a buyer-paid "mansion tax."
Is transfer tax deductible?
Not as an income-tax deduction. For sellers it reduces the amount realized on the sale; for buyers it's added to the property's cost basis. Either way it affects capital-gains math rather than giving an upfront deduction. Confirm with a CPA.
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