Why agents care
Transfer taxes can be a large seller cost in some markets and are easy to forget in a net sheet. Setting local defaults in calculators prevents over-optimistic seller expectations.
Glossary term
Transfer tax
A transfer tax (sometimes called a documentary stamp tax, deed tax or excise tax) is charged by some states, counties and cities when real property changes hands. Rates and who pays vary widely. Some places have none, and others levy significant percentages on higher-priced sales.
Example
Example: in a jurisdiction charging 1% of the price, a $425,000 sale would carry $4,250 in transfer tax, typically shown on the seller's side unless the contract says otherwise.
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Questions by topic
Transfer tax: common questions
Who pays transfer tax?
It depends on local law and custom. It's often the seller, sometimes split, and occasionally the buyer.
Is transfer tax the same as property tax?
No. Property tax is charged every year on ownership. Transfer tax is charged once when the property is sold.
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