Real Estate Transfer Taxes: What Is This Little-Known Extra Cost to Sell Your Home?

Do any states NOT charge transfer taxes?

Thirteen states do not impose a real estate transfer tax. They include:

• Alaska
• Idaho
• Indiana
• Louisiana
• Kansas
• Mississippi
• Missouri
• Montana
• New Mexico
• North Dakota
• Texas
• Utah
• Wyoming

Most of Oregon also has no real estate transfer tax. Only Washington County charges such a tax: $1 per $1,000 when the value of a property sale exceeds $13,999.

Curious to know how transfer taxes work in your state? We’ve pored through all 50 state legislature codes to bring you the exact tax rate that will be applied to your home sale (unless you lucked out in a no-tax state), who’s liable for the tax, and any additional local taxes you should be on the lookout for.

We’ve also pulled up the median home price for a major metro area in each state and did the math to give you a rough estimate of your state tax responsibility. County and municipal taxes vary by area, so if you have them and are looking to pin down exact rates, your local Recorder of Deeds website — and your agent — are great places to start.

State	Major metro median sales price	State transfer tax estimate	What’s it called?	Rate	Who pays it?
Alabama	$220,000 (Birmingham)	$ 630.00	Recordation tax	$.50 cents for each $500 of consideration	Purchaser
Alaska	n/a	n/a	n/a	n/a	n/a
Arizona	n/a	n/a	n/a	n/a	n/a
Arkansas	$237,812 (Little Rock)	$ 887.70.06	Transfer tax	$3.30 per $1,000 of consideration	Split equally between buyer and seller (unless stated differently in contract)
California	$882,020 (Los Angeles)	n/a	Documentary transfer tax (optional county tax)	County transfer tax: 0.11%, plus any city transfer taxes	Negotiable
Colorado	$615,000 (Denver)	n/a	Documentary fee	$500 or less: no tax More than $500: $.01 for every $100 or fraction thereof (may be locally imposed tax as well)	Negotiable
Connecticut	$243,250 (Hartford)	n/a	Conveyance tax	1%-2.75%, depending on the municipality.	Seller
Delaware	$156,700 (Wilmington)	$4,701.00	Transfer tax	Less than $100: no tax $100 or more: 3% of value, unless municipality or county requires 1.5% on their own, and if so, only 2.5% First-time homebuyer: Deduct .5% off responsibility (usually 1.25%) to only owe state .75% of the value	Split equally between seller and buyer (first-time homebuyers’ discount deducted from their state portion)
Florida	$383,883 (Miami)	$1,950.00	Documentary stamp tax	$.70 for each value or fraction of $100 Miami Dade County: $.60 for each value or fraction of $100 plus $.45 per $100 for all property that’s not a single family dwelling	Negotiable (both liable if not paid)
Georgia	$352,500 (Atlanta)	$ 352.50	Transfer tax	$100 or less: no tax Above $100: $1 for first $1,000 and $.10 for each additional or fraction of $100	Seller
Hawaii	$945,000 (Honolulu)	$1,890.00	Conveyance tax	$100 or less: no tax > $100 – < $600,000: $.10 for each value of $100 $600,000- <$1 million: $.20 for each value of $100 $1 million<$2 million: $.30 for each value of $100 $2 million<$4 million: $.50 for each value of $100 $4 million-<$6 million: $.70 for each value of $100 $6 million<$10 million: $.90 for each value of $100 $10 million or greater: $1 for each value of $100	Seller
Idaho	n/a	n/a	n/a	n/a	n/a
Illinois	$298,000 (Chicago)	$ 298.00	Transfer tax	$.50 for each value or fraction of $500	Negotiable
			County transfer tax (optional)	Up to $.25 per $500 of value	Negotiable
			Municipal transfer tax (optional, only 5% of municipalities have one)	Highest currently: Chicago with $10.50 for each value or fraction of $1,000	Depends on municipality
Indiana	n/a	n/a	n/a	n/a
Iowa	$230,000 (Des Moines)	$ 368.00	Transfer tax	$500 or less: no tax Over $500: $.80 for each additional value or fraction of $500	Seller
Kansas	n/a	n/a	n/a	n/a	n/a
Kentucky	$255,000 (Louisville)	$ 225.00	Transfer tax	$.50 for each value or fraction of $500	Seller
Louisiana	n/a	n/a	n/a	n/a	n/a
Maine	$530,000 (Portland)	$1,430.00	Transfer tax	$2.20 for each value or fraction of $500	Split between buyer and seller
Maryland	$225,000 (Baltimore)	$1,125.00	Transfer tax	.5% of value. First-time home buyers: .25% of value	Negotiable (if buyer is a first-time homebuyer, seller must pay)
			County transfer tax (optional)	Up to .5% of value (no limit on charter counties)	Depends on county
Massachusetts	$910,000 (Boston)	$2,500.00	Excise tax	$100 and under: no tax $100-$500: $2.00 flat fee. $500 and up: $2.28 per each value or fraction of $500	Seller
Michigan	$165,000 (Detroit)	$1,237.50	State transfer tax	$100 or less: no tax. Over $100: $3.75 for each value or fraction of $500	Seller
			County transfer tax	$100 or less: no tax Over $100: $.55 for each value or fraction of $500 in counties with less than 2,000,000 No more than $.75 for each value or fraction of $500 in counties with 2,000,000 or more	Seller
Minnesota	$336,351 (Minnesota)	$ 825.00	Deed tax	$3000 or less, flat rate of $1.65. Over $3000, .0033 of net consideration	Seller
				Hennepin and Ramsey Counties- additional Environmental Response Fund rate tax of .0001 of value
Mississippi	n/a	n/a	n/a	n/a	n/a
Missouri	n/a	n/a	n/a	n/a	n/a
Montana	n/a	n/a	n/a	n/a	n/a
Nebraska	$298,971 (Omaha)	$ 535.50	Documentary stamp tax	$2.25 for each value or fraction of $1,000	Seller
Nevada	$289,000 (Las Vegas)	$ 751.40	State transfer tax	$100 or less: no tax. Over $100: $1.95 for each value or fraction of $500	Negotiable (both liable if not paid)
			County transfer tax	$100 or less: no tax Over $100: $.65 for each value or fraction of $500 for counties with population < 700,000 $1.25 for each value or fraction of $500 for counties with population 700,000 or more	Negotiable (both liable if not paid)
			Additional county transfer tax (optional)	$100 or less: no tax Over $100: up to $.05 for each value or fraction of $500 for counties with population under 700,000	Negotiable (both liable if not paid)
New Hampshire	$355,000 (Manchester)	$2,663.00	Transfer tax	$4000 or less: flat fee of $20 each Over $4000: $.75 for each value or fraction of $100 (will be computed up to the nearest dollar amount)	Buyer and seller each owe stated tax separately
New Jersey	$315,000 (Newark)	$2,457.00	Realty transfer fee	Less than $100: no fee $100-$150,000: $2 for each value or fraction of $500 >$150,000 -$200,000: $3.35 for each value or fraction of $500 >$200,000-$350,000: $3.90 for each value or fraction of $500 >$350,000- $550,000: $4.80 for each value or fraction of $500 >$550,000- $850,000: $5.30 for each value or fraction of $500 >$850,000-$1,000,000: $5.80 for each value or fraction of $500 >$1,000,000: $6.05 for each value or fraction of $500	Negotiable (both liable if not paid)
			Grantee transfer fee	Over $1,000,000: 1% of value	Buyer
n/a	n/a	n/a	n/a	n/a
New York	$710,000 (New York City)	$2,040.00	Transfer tax	$500 or less, no tax >$500, $2 for each $500 or fraction of Residential properties >$2,000,000 ($3,000,000 in cities with populations >1,000,000) additional $1.25 for each value or fraction of $500	Seller primarily responsible, buyer secondarily responsible
			Additional millionaire transfer tax	$1,000,000 or more, additional tax of 1% of value	Buyer primarily responsible, seller secondarily responsible
			Supplemental tax for properties $2,000,000 or more in cities with population of 1,000,000 or more	$2 million- <$3 million: .25% of value $3 million-<$5 million: .5% of value $5 million-<$10 million: 1.25% of value $10 million- <$15 million: 2.25% $15 million- <$20 million: 2.5% $20 million- <$25 million: 2.75% $25 million >: 2.9% of value	Buyer primarily responsible, seller secondarily responsible *Additional NYC-specific taxes
North Carolina	$294,000 (Charlotte)	$ 588.00	Excise tax	$1 for each value or fraction of $500	Seller
			Land transfer tax	No more than $1 for each value or fraction of $100 for Dare, Camden, Chowan, Currituck, Pasquotank, and Perquimans Counties	Seller
North Dakota	n/a	n/a	n/a	n/a	n/a
Ohio	$316,995 (Columbus)	$ 920.00	Transfer tax Conveyance fee	$.30 for each value or fraction of $100$100 or less: no tax Over $100: $.10 for each value or fraction of $100, or $1, whichever is greater	Seller Seller
Oklahoma	$162,900 (Oklahoma City)	$ 244.35	Documentary stamp tax	$100 or less, no tax Over $100, $.75 for each value or fraction of $500	Seller
Oregon	$430,000 (Beaverton)	$ 430.00	Transfer tax (Washington County only)	Less than $14,000: no tax $14,000 and higher: $1 for each value or fraction of $1000	Negotiable (both liable if not paid)
Pennsylvania	$242,000 (Philadelphia)	$2,420.00	Realty transfer tax	$100 or less: no tax Over $100: 1% of value	Negotiable, but usually split (both liable if not paid)
			Local realty transfer tax	$100 or less: no tax Higher than $100: up to 1% of value (home rule municipalities can tax more)	Negotiable, but usually split (both liable if not paid)
Rhode Island	$417,500 (Providence)	$1,058.00	Real estate conveyance tax	$100 or less: no tax Higher than $100: $2.30 for each value or fraction of $500	Seller (unless otherwise designated in contract)
South Carolina	$240,000 (Greenville)	$ 888.00	Deed recording fee	$100 or less: no tax Over $100: $1.85 for each value or fraction of $500	Seller primarily responsible, buyer secondarily responsible
South Dakota	$219,900 (Rapid City)	$ 219.90	Transfer fee	$.50 for each value of fraction of $500	Seller
Tennessee	$315,000 (Nashville)	$1,165.50	Recordation tax (transfer of realty)	$.37 for each value of $100 dollars (County register can impose $1.00 processing fee)	Buyer
Texas	n/a	n/a	n/a	n/a	n/a
Utah	n/a	n/a	n/a	n/a	n/a
Vermont	$339,950 (Burlington)	$4,979.03	Transfer tax	.5% on first $100,000 1.25% on amount exceeding $100,000 .2% clean water surcharge on the amount exceeding $100,000 *Different rates for USDA, VA, and non-principal properties	Buyer
Virginia	$630,000 (Arlington)	$ 945.50	Recordation tax   Grantor Tax	$100 or less, no tax Over $100, $.25 for each value or fraction of $500 (Deed of release tax fee: $.50) $100 or less, no tax Over $100, $.50 for each value or fraction of $500″	Negotiable (typically buyer) Seller
			Optional city or county recordation tax	Up to 1/3 of the state recordation tax	Typically buyer
Washington	$751,000 (Seattle)	$9,612.80	Real estate excise tax	$500,000 or less: 1.1% tax rate >$500,000- $1.5 million: 1.28% of value >$1.5 million- $3 million: 2.75% of value >$3 million: 3% of value	Seller primarily responsible, buyer secondarily responsible
West Virginia	$630,00 (Charleston)	$1,672.20	State excise tax	$100 or less: no tax Over $100, $1.10 for each value or fraction of $500 *Also, $20 assessment fee for all transfers	Seller primarily responsible, buyer secondarily responsible
			County excise tax	$100 or less, no tax >$100, $.55 for each value or fraction of $500 (counties may add up to $1.65 for each value or fraction of $500)	Seller primarily responsible, buyer secondarily responsible
Wisconsin	$185,429 (Milwaukee)	Transfer fee	$ 556.29	$1,000 or less: no fee More than $1,000, $.30 for each value or fraction of $100	Seller
Wyoming	n/a	n/a	n/a	n/a	n/a

Are there any exceptions to paying transfer taxes?

There are, although you should check with your real estate agent, a real estate attorney, or a tax professional for specifics related to where you live.

Let’s look at California again as an example. Because California specifies that the sale has to be a “conveyance for value,” any property that doesn’t meet that definition isn’t charged transfer tax, Wasserman says.

So if property changes owners during a marital dissolution, there’s no transfer tax, he says. Property secured as part of a debt or foreclosure? No transfer tax.

Property transferred into a trust? No transfer tax. Other situations where the transfer tax doesn’t apply can include property that spouses own at a 50-50 split that they want to transfer into an LLC. “The proportional interest remains the same,” Wasserman says.

Property given as a gift in California also is not subject to transfer tax, he says.

However, some states, such as Iowa, Nebraska, New Jersey, or Pennsylvania, will impose estate or inheritance taxes. In contrast, Maryland enforces both estate and inheritance taxes, necessitating fees from both the recipient and the deceased’s estate, as highlighted by the Tax Foundation. Therefore, it’s important to consult with a local expert about your tax laws.

So, a real estate transfer tax is just a processing fee?

In some areas, real estate transfer tax is considered a fee for processing the transfer paperwork, even though “you don’t need to pay $1,000 or $2,000 to put a stamp on the property,” Fallico says. “It’s what you do for closing. It’s what you pay, just like you pay interest on a loan.”

Some municipalities require a “point of sale” or occupancy inspection in addition to the home inspection, so the payer feels like they’re receiving something in exchange for the tax, Fallico says. “An inspector comes out and looks at the electrical, looks at the plumbing, makes sure that you didn’t do additions to the property and are paying your fair share of taxes.”

However, some municipalities also add on processing fees. In Santa Monica, the county recorder’s office charges a recording fee of about $28 for the first page and roughly $7 per page thereafter, Wasserman says.

The District of Columbia has a deed recordation tax of 1.45% or 1.1% for values up to $400,000, as well as a deed transfer tax of the same amount.

Are transfer taxes tax-deductible?

Unlike property taxes, which you can deduct up to $10,000, you cannot deduct transfer taxes or stamp taxes on the sale of a personal home, according to the Internal Revenue Service. If you’re a buyer and pay them, they’re included in the cost basis of the property. If you’re the seller and pay them, they’re expenses of the sale and “reduce the amount realized on the sale,” the IRS says.

Criticisms of the transfer tax

The National Association of Realtors (NAR) historically has opposed real estate transfer taxes, calling them a “major burden to buyers and sellers.”

The NAR says these taxes are “volatile” in nature, making them a poor revenue source for municipalities. The association also says real estate transfer taxes reduce housing opportunities overall and place an added burden on low-income families and those who move often.

NAR has proposed exempting first-time homebuyers and those from low- and moderate-income households from transfer taxes.

New Jersey has reduced transfer tax rates for sellers of low- and moderate-income housing who are senior citizens, blind or have disabilities. This reduced rate ranges from 50 cents to $3.40 per $500, MidPoint says.

The District of Columbia reduces its deed recordation tax for first-time homebuyers to 0.725% for values up to $400,000; they still must pay a deed transfer tax of 1.45% or 1.1% for values up to $400,000.

Real estate transfer taxes are but one slice of the fees and costs associated with selling your home from start to finish. (HomeLight has a handy Net Proceeds Calculator that breaks down all these fees, so you can estimate your final payout.)

Talk with your real estate agent, a tax professional, or an attorney about any exemptions to transfer taxes relevant to your situation, so they can answer all your questions before it’s time to sign on the dotted line.

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