Real Estate Deed Transfer Tax Calculator
Estimated Transfer Costs
Understanding Deed Transfer Taxes and Recording Fees
When real estate changes hands, local and state governments typically levy a Deed Transfer Tax (also known as a documentary stamp tax or conveyance tax). This is a one-time fee paid at the time of closing to legalise the transfer of the property title from the seller to the buyer.
How Deed Calculations Work
The calculation is primarily based on the fair market value or the actual sale price of the property. Most jurisdictions apply a percentage rate per $100 or $1,000 of value. For example, if your state has a tax rate of 0.50%, a $200,000 home would incur a $1,000 tax.
Common Components of Deed Costs
- State Transfer Tax: A percentage mandated by state law.
- County/Municipal Tax: Additional local taxes that vary by specific jurisdiction.
- Recording Fees: Flat fees charged by the County Recorder or Registrar of Deeds to physically update the public records.
- Mansion Tax: In some areas, an additional tax is applied to high-value properties (typically over $1 million).
Realistic Calculation Example
Suppose you are purchasing a property for $400,000 in a region with the following rates:
| Category | Rate/Fee | Total |
|---|---|---|
| State Tax | 0.75% | $3,000 |
| County Tax | 0.10% | $400 |
| Recording Fee | Flat | $75 |
| Total Deed Cost | $3,475 | |
Who Pays the Deed Tax?
Customs vary by state. In many Southeast states, the seller typically pays the transfer tax. In other areas, the buyer and seller may split the cost, or it may be entirely the buyer's responsibility. Always check your local purchase agreement contracts as these fees are often negotiable.