What Is Real Estate Transfer Tax? A Complete State-by-State Guide

What Is Real Estate Transfer Tax?

Real estate transfer tax — also called a deed transfer tax, documentary stamp tax, or conveyance tax — is a one-time tax charged when property ownership changes hands. You pay it at closing, and it's based on the sale price of the home.

Think of it as the government's "transaction fee" for recording the change of ownership in public records. Every state has its own rules — some charge nothing at all, while others layer state, county, and city taxes that can add up to 4% or more of the sale price.

Who Pays Real Estate Transfer Tax?

This depends entirely on the state — and sometimes the negotiation between buyer and seller.

Seller pays in most states. That's the norm in California, Florida, Texas (no tax, but in theory), New York, and many others. Since the seller receives the proceeds from the sale, it logically comes out of their side of the ledger.

Split between buyer and seller happens in states like Pennsylvania, Maine, Delaware, and Washington D.C. Each party covers half the tax.

Buyer pays in a few states and in certain local scenarios. New Jersey's "mansion tax" (an extra 1% on homes over $1 million) falls on the buyer, for instance.

In practice, transfer taxes are often negotiable as part of the purchase offer. In buyer's markets, sellers may agree to cover the full amount. In hot markets, buyers sometimes pick up the tab.

How Is Transfer Tax Calculated?

Most states charge transfer tax as a percentage of the sale price, though the way they express that rate varies:

• Per $500 of value — Alabama charges $0.50 per $500, which equals 0.1% of the sale price.
• Per $1,000 of value — Minnesota charges $3.30 per $1,000, or 0.33%.
• Per $100 of value — Florida charges $0.70 per $100, or 0.7%.
• Flat percentage — New Hampshire simply says 1.5% of the purchase price, split equally.
• Graduated/tiered — Washington State uses tiers: 1.28% on the first $525K, more on amounts above that.

The math is straightforward: multiply your sale price by the rate. A $400,000 home in Wisconsin (0.3%) generates $1,200 in transfer tax. The same home in Delaware (roughly 3.5% combined state + county) generates $14,000.

Transfer Tax Rates by State — 2025 Overview

Here's a snapshot of the highest and lowest transfer tax states. Use the calculator to get exact figures for any amount.

States With No Real Estate Transfer Tax

Fourteen states have no state-level real estate transfer tax at all. If you're buying or selling in one of these, you won't owe a state deed tax — though you may still pay recording fees:

Alaska, Arizona, Idaho, Indiana, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Texas, Utah, and Wyoming all have no state transfer tax.

Oregon is a special case: there is no state transfer tax, but some counties charge recording fees and Portland has its own local business tax that can affect transactions.

Colorado technically has a documentary fee, but at $0.01 per $100 it is essentially nominal — a $400,000 home would generate just $40.

Local Surcharges: The Hidden Layer

State rates are only half the story. Many states allow counties and cities to stack their own transfer taxes on top of the state rate — and in some markets, the local tax dwarfs the state tax.

New York City is the most dramatic example. The state charges $2 per $500, but NYC adds 1% on sales under $500K and 1.425% on sales above. A $1 million apartment in Manhattan carries a combined transfer tax of about $16,000 — before the mansion tax kicks in.

California charges only $1.10 per $1,000 at the state (county) level. But cities can pile on: San Francisco, Los Angeles, and others each have their own transfer taxes that can reach several percentage points on high-value transactions.

Illinois has a modest state rate, but Chicago charges $5.25 per $500 ($3.75 buyer + $1.50 seller) — making it one of the pricier transfer tax environments in the Midwest.

Common Transfer Tax Exemptions

Most states carve out exemptions that can reduce or eliminate transfer tax for certain transactions:

• First-time homebuyers — Maryland, Washington D.C., and a handful of others waive or reduce the state portion for first-time buyers.
• Family transfers — Transfers between spouses or close family members (gifts, inheritance) are often exempt or taxed at a nominal rate.
• Foreclosure and short sales — Some states exempt lender-owned property transfers.
• Government entities — Transfers to or from government bodies are typically exempt.
• Charitable organizations — Transfers to qualifying non-profits may be exempt.
• Low-value thresholds — Several states exempt the first $100–$500 of value before the tax kicks in.

Exemptions are specific to each state and sometimes to the county. Your title company or real estate attorney can confirm which apply to your transaction.

Transfer Tax vs. Recording Fees — What's the Difference?

These two closing costs often get lumped together, but they're different things.

Transfer tax is a tax on the value of the transaction — it scales with your sale price. A $300,000 sale pays less transfer tax than a $900,000 sale.

Recording fees are flat administrative charges paid to the county clerk for officially recording the deed and mortgage documents in public records. They don't scale with sale price — you might pay $50–$250 regardless of whether the home costs $200K or $2M.

Both appear on your closing disclosure. Both are part of your closing costs. But only transfer tax is a percentage-based tax that varies meaningfully by state and sale price.