Transfer taxes go by many names, including documentary stamp tax, deed tax, conveyance tax and excise tax, but they work the same way: a charge on the deed when ownership changes, figured from the price. After commissions, it’s often one of the largest closing costs
How is the transfer tax calculated?
Most states charge a flat percentage of the price. Florida charges 70 cents per $100, or 0.70%; New York charges $2 per $500, or 0.4%. Some states use graduated rates that rise with the price, like Washington’s real estate excise tax, which starts at 1.1% and steps up on the part of a price
Counties and cities can add their own tax on top. In Pennsylvania the state’s 1% is usually joined by about 1% in local tax, and New York City adds its own transfer tax to the state’s. A few places add a mansion tax
Who pays the transfer tax?
Custom and the contract decide. In most states that charge one, the seller customarily pays, including Florida, New York and Washington. In Colorado, Tennessee and Vermont, buyers customarily pay. In Pennsylvania, Delaware, Maryland and a few other states, buyer and seller
Custom isn’t the same as the law. Florida’s Department of Revenue says all parties to the deed are liable for the tax, whichever one agrees to pay it, and New York makes the buyer pay if the seller doesn’t. The purchase contract
Which states have no transfer tax?
Fourteen states charge no state transfer tax, including Texas, Indiana, Missouri and Oregon, and Arizona charges only a flat $2 fee when the deed is recorded. That doesn’t always mean zero: Oregon’s Washington County has its own small tax, and every state charges recording fees to put the
Is the transfer tax deductible?
Not as a tax: the IRS lists transfer taxes among the taxes you can’t deduct. For a buyer, IRS Publication 523 counts transfer or stamp taxes paid at purchase as part of the home’s cost basis, which can lower the taxable gain when you sell. A tax professional can tell you how the tax you pay as a seller fits
Example: transfer tax on a $400,000 sale
| Florida (0.70% documentary stamp tax) | $2,800, usually the seller |
|---|---|
| New York State, outside New York City (0.4%) | $1,600, usually the seller |
| New York City (state 0.4% plus city 1%) | $5,600, usually the seller |
| Washington (1.1% state plus a typical 0.5% local) | $6,400, usually the seller |
| Pennsylvania (1% state plus a typical 1% local) | $8,000, usually split |
| Texas | $0, no transfer tax |
Local rates vary within Washington and Pennsylvania, so those rows use a typical local rate. In Miami-Dade County, Florida’s rate is 0.60% on a single-family home or condo
Common mistakes
- Assuming the seller always pays. In some states the buyer pays or the
two split it. - Using only the state rate where counties or cities add
their own tax. - Forgetting graduated rates: in some states a higher price means a higher rate on part or all
of the price. - Expecting to deduct the transfer tax like a property tax. It isn’t
deductible that way.
Questions
Is a transfer tax the same as a recording fee?
No. A recording fee is a set charge to put documents on the public record. A transfer tax is figured from the price and is
Do I pay transfer tax when I refinance?
Generally no, because ownership doesn’t change hands. Some states tax the new mortgage itself, such as New York’s mortgage recording tax, and that can apply
Where can I see my state’s rate?
The transfer tax by state dataset linked on this page lists every state’s rate, who customarily pays it and the tax on
Sources
- Florida Department of Revenue: Documentary stamp tax
- New York State Department of Taxation and Finance: Real estate transfer tax
- Washington Department of Revenue: Real estate excise tax
- IRS Topic 503: Deductible taxes
- IRS Publication 523: Selling your home
Written and checked by the Broker & Agent team on October 2, 2026. General information, not legal, tax or lending advice. Something out of date? Tell us.