Transfer Tax

A transfer tax (sometimes called a deed tax, conveyance tax, or documentary stamp tax) is charged when ownership of real estate changes hands. It is typically calculated as a percentage of the sale price, and some places add a separate county or city tax on top of the state rate. The amount can range from zero in states that levy no transfer tax to more than 2 percent of the price in high-cost jurisdictions.

Who pays the transfer tax is a matter of local custom and is negotiable in the contract. In many states the seller pays, but in others the buyer pays or the two split it. Because the rate and the responsible party vary so widely, a net sheet should use the rate that applies in your specific location rather than a national average.