Land records · Parcel maps · October 5, 2026
What Is a Real Estate Transfer Tax? Who Pays It
What is a real estate transfer tax? A state or local tax on property transfers, usually based on price. Who pays, common exemptions, and how it is paid.
What is a real estate transfer tax? It is a tax charged by some states, counties, or cities when ownership of real property changes hands, usually collected when the deed is recorded. The amount is typically based on the sale price or the property’s value. It goes by many names, including documentary stamp tax, deed tax, conveyance tax, excise tax, and recordation tax. Some states have none; others stack state, county, and city taxes. This page is general land-records background, not tax or legal advice.
How it is calculated
Most transfer taxes are a rate applied to the consideration (price) or value, often stated per $500 or per $100. For example, Florida’s documentary stamp tax on deeds is generally 70 cents per $100 of consideration, with a different rate in one county. Other places use flat percentages, tiers that rise with price, or extra “mansion taxes” on high-value sales.
| Price | Rate example: $1 per $500 | Rate example: 1 percent |
|---|---|---|
| $200,000 | $400 | $2,000 |
| $400,000 | $800 | $4,000 |
These are illustrations only. Check your state and local rates.
Who pays
Depending on state law and local custom, the seller, the buyer, or both pay. The purchase contract can usually allocate it differently. Many title companies and real estate agents can tell you the local custom.
Common exemptions
Many jurisdictions exempt certain transfers, such as:
- Gifts and transfers without consideration, though rules vary. See what is a gift deed.
- Transfers between spouses or in divorces.
- Transfers into a revocable living trust.
- Corrective deeds that fix errors.
- Transfers to or from government agencies.
- Foreclosure-related transfers in some places.
Exemptions often require a form or affidavit filed with the deed citing the specific exemption.
How it is paid
At a typical closing, the title or escrow company calculates the tax and pays it when recording the deed. Recorders may refuse to record a deed without proof of payment or an exemption form. For do-it-yourself transfers, such as a quitclaim deed between family members, check the recorder’s website for required transfer tax forms. See how to record a deed.
Transfer tax vs recording fee
Recording fees are flat or per-page charges for the recorder’s service. Transfer taxes are based on value and can be much larger. Both may be due when recording.
Transfer tax vs property tax
Property tax is paid every year by the owner. Transfer tax is paid once, when ownership changes.
Bottom line
A real estate transfer tax is a one-time tax on property transfers, usually based on price and collected when the deed is recorded. Rates, who pays, and exemptions depend on state and local law and the contract. Check your county recorder’s forms before recording, starting from the Platbookmapper map.
What is a real estate transfer tax FAQ
Who pays the real estate transfer tax?
It depends on state law, local custom, and the contract. Sellers pay in some areas, buyers in others, sometimes both.
Do all states have a transfer tax?
No. Some states have none, while others have state, county, and city transfer taxes.
Is a gift of property subject to transfer tax?
Many places exempt gifts without consideration, but rules vary. An exemption form may be required.
Is transfer tax the same as a recording fee?
No. Recording fees are for filing the document; transfer taxes are based on value.
When is transfer tax paid?
Usually at closing when the deed is recorded, often by the title or escrow company.