Real estate transfer tax is a

tax A tax is a mandatory financial charge or levy imposed on an individual or legal entity by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities. Tax co ...

that may be imposed by states, counties, or municipalities on the privilege of transferring

real property In English common law, real property, real estate, immovable property or, solely in the US and Canada, realty, refers to parcels of land and any associated structures which are the property of a person. For a structure (also called an Land i ...

within the jurisdiction.

Rates

In the USA, total transfer taxes can range between very small (for example, .01% in

Colorado Colorado is a U.S. state, state in the Western United States. It is one of the Mountain states, sharing the Four Corners region with Arizona, New Mexico, and Utah. It is also bordered by Wyoming to the north, Nebraska to the northeast, Kansas ...

) to relatively large (4% in the city of

Pittsburgh Pittsburgh ( ) is a city in Allegheny County, Pennsylvania, United States, and its county seat. It is the List of municipalities in Pennsylvania#Municipalities, second-most populous city in Pennsylvania (after Philadelphia) and the List of Un ...

). Some

U.S. state In the United States, a state is a constituent political entity, of which there are 50. Bound together in a political union, each state holds governmental jurisdiction over a separate and defined geographic territory where it shares its so ...

s have a variety of transfer tax laws which may include specific exemptions for certain types of buyers based on buying status or income level. For example,

Maryland Maryland ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic region of the United States. It borders the states of Virginia to its south, West Virginia to its west, Pennsylvania to its north, and Delaware to its east ...

exempts certain "first time buyers" from a percentage of the total or excludes a portion of the property's sales price from taxation altogether. Real estate transfer taxes have become controversial in some U.S. jurisdictions seeking to increase transfer taxes on higher end property sales to help combat issues like homelessness. 2022'
Chicago's Bring Chicago Home
initiative, seeks to increase transfer taxes on $1 million transactions by 253% or
o 2.65% or $26,500 per million dollar of sale value
on both residential and commercial properties. Another variation which exists is either the legal requirement to split the taxes between the parties or the local custom to do so. Thus, in

Washington, DC Washington, D.C., formally the District of Columbia and commonly known as Washington or D.C., is the capital city and Federal district of the United States, federal district of the United States. The city is on the Potomac River, across from ...

, the 2.2% is generally split between the seller and the buyer.

US States with no real estate transfer taxes

While many states levy a real estate transfer tax when a property title changes hands, several do not : * Alaska * Idaho * Indiana * Louisiana * Kansas * Mississippi * Missouri * Montana * New Mexico * North Dakota * Oregon (most counties) * Texas * Utah * Wyoming

References

{{Authority control Transfer Transfer tax

Rates

US States with no real estate transfer taxes

See also

Further reading

References