Transfer Tax Calculator 2021
|Total Tax Rate:||0.9 %|
|Marginal Tax Rate:||0.9 %|
|Estimated Transfer Tax:||$ 4,500.00|
|State Transfer Tax:||$ 2,000.00|
|County/Other Transfer Tax:||$ 2,500.00|
What is transfer tax?
Also referred to as a conveyance tax, a transfer tax is a government charge issued when a property owner transfers ownership or title to property from one entity to another. This tax can be charged at the state, county, or municipal level and is often included as part of the seller’s closing costs, but can be paid by the buyer as well. Use the real estate transfer tax calculator below to find out how much your real estate transfer tax would cost.
Is transfer tax tax-deductible?
Unfortunately, you cannot deduct real estate transfer taxes from your income when filing taxes according to the IRS. However, you can receive future tax benefits when paying transfer taxes as a home buyer.
Home Buyers: If you buy a home and then pay transfer taxes, you can add this tax to the home’s purchase price. In the future, you may sell your home and earn a profit based on the home increasing in value. In this case, you would sell the home for more than the original purchase price and this profit would be considered capital gains. If you add transfer taxes to the initial purchase price, your capital gains will be reduced.
For example, let’s say you bought a house for $400,000 and paid $2,000 in transfer taxes. Then assume you’re selling the house for $500,000. Since you paid $2,000 in transfer taxes before, your total taxable capital gains would only be $98,000.
Home Sellers: If you sell a home and pay transfer taxes, you can deduct this tax from the sale price of the home. If you bought the home for less than the sale price, then the difference is considered capital gains and is taxed. By deducting any transfer taxes, the taxable amount of capital gains will be reduced.
Transfer Tax Exemptions
There are different types of transfer tax exemptions. You can be exempt from a transfer tax by falling into predefined categories listed by your state or county. States can also exempt first-time home buyers or specific home buyers from paying the transfer tax.
States exempt real estate transfers from paying documentary transfer taxes under certain circumstances. For example, Sacramento county in California has a number of exemptions listed on their information sheet. If an exemption occurs and only the seller is exempt from paying transfer tax, the buyer will still have to pay a transfer tax. Likewise, if only the buyer is exempt, the seller must pay a transfer tax.
However, who actually pays for this tax is usually negotiable during the transaction. Different states will have different rules as to who the transfer tax defaults to. In California, the entire transfer tax including the buyer’s portion defaults to the seller. That’s why it’s important to specify who pays the transfer tax in your purchase agreement. It can clearly define who is responsible for paying what portion of the transfer tax and hold them accountable.
Another type of transfer tax exemption is a first-time home buyer transfer tax exemption. Delaware and Vermont will allow certain home buyers to pay lower or no transfer tax.
- Delaware Transfer Tax Exemption: In Delaware, first-time home buyers are exempt from paying the state-level transfer tax. The Delaware transfer tax is a total of 4% with 1.5% going to the county and 2.5% going to the state. This means that each of the buyer and seller pay .75% to the county and 1.25% to the state. As a first-time home buyer, you would only have to pay a .75% transfer tax for a home price of up to $400,000. On any amount above $400,000, you would have to pay the full 2%. For example, on a $500,000 home, a first-time home buyer would have to pay $400,000 * .75% + $100,000 * 2% = $3,200 in transfer taxes.
- Vermont Transfer Tax Exemption: In Vermont, the standard transfer tax for home buyers is 1.45% of the property value. However, if the property will be your primary residence, you only have to pay 0.5% on the first $100,000 and 1.45% on the remaining amount. Additionally, if it is your primary residence and you use a Vermont Housing Finance Agency (VHFA), U.S. Department of Agriculture (USDA), or Vermont Children’s Trust Foundation (VCTF) loan, the transfer tax rate on the first $100,000 is 0%.
County Transfer Tax
In most cases, your transfer tax will be a combination of a state transfer tax, a county transfer tax, and possibly a municipality transfer tax. Most states charge a flat transfer tax throughout all counties. You can also expect that in most counties, the county transfer tax rate stays consistent throughout the state. However, some counties will charge their own unique transfer tax that varies throughout the state. There may even be some municipalities that charge a unique transfer tax. When purchasing or selling property, you should check your county and municipalities’s specific transfer tax rate or ask your real estate agent.
Real Estate Transfer Tax by State
The real estate transfer tax varies quite a bit by state and even between counties. Different counties can charge additional taxes and have unique rules. Below is a detailed breakdown of the transfer tax rules for the most popular states:
New Jersey (NJ) Transfer Tax
The New Jersey (NJ) Transfer Tax does not vary by county. Instead, the marginal transfer tax rate is larger with a higher-valued home.
Each marginal tax rate only applies to the amount of your home price within each bracket. This means that your total tax rate is a combined tax rate between all the transfer tax rates applicable to you. For homes valued at $350,000 or under, here are the marginal transfer tax rates:
|Home Price Bracket||Tax Rate|
|$0 - $150,000||0.4%|
|$150,000.01 - $200,000||0.67%|
|$200,000.01 - $350,000||0.78%|
For homes valued at over $350,000, these are the marginal tax rates:
|Home Price Bracket||Tax Rate|
|$0 - $150,000||0.58%|
|$150,000.01 - $200,000||0.85%|
|$200,000.01 - $550,000||0.96%|
|$550,000.01 - $850,000||1.06%|
|$850,000.01 - $1,000,000||1.16%|
To understand how these marginal tax rates apply to you, use the transfer tax calculator and select “New Jersey” as the state.
New York (NY and NYC) Transfer Tax
Generally, the seller will pay for the transfer tax in New York, but if the seller is exempt, then the responsibility to pay this tax falls upon the buyer.
The New York state transfer tax rate is 0.4% for homes below $3,000,000 and 0.65% for homes above $3,000,000. These are total tax rates, so the transfer tax calculation is easier. There is also a 1% mansion tax on properties valued at $1,000,000 or more, which is paid by the home buyer. These state tax rates are consistent throughout most counties, but your specific county or municipality may also charge an additional transfer tax.
In New York City (NYC), the transfer tax is the state transfer tax plus the county transfer tax. If the home value is $500,000 or less, the county transfer tax is 1% and if the home value is more than $500,000 the transfer tax is 1.425%. These are not marginal tax rates, so your respective tax rate is applicable to full home value.
There are also many conditions that would exempt you from paying a real estate transfer tax.
|All Other Counties||0.40%|
|Additional Transfer Taxes|
|To calculate the additional transfer tax, take your purchase price, subtract the respective amount, and then multiply the result by the respective percentage rate.|
|New York City||1% on Residential Properties $500,000 or less and 1.425% on Residential Properties over $500,000|
|Mount Vernon||1% on the purchase price minus $100,000|
|Yonkers||1.5% on the purchase price minus $25,000|
|Shelter Island, Southampton, East Hampton||2% on the purchase price minus $250,000 for improved properties or minus $100,000 for unimproved properties|
|Southold and Riverhead||2% on the purchase price minus $150,000 for improved properties or minus $75,000 for unimproved properties|
|Town of Red Hook||2% on the purchase price minus the median sale price of Dutchess County residential properties|
|Town of Warwick||0.75% on the purchase price minus $100,000 for improved properties or minus $50,000 for unimproved properties|
Florida (FL) Transfer Tax
In Florida, the transfer tax is used for Documentary Stamps (Doc Stamps) on a deed and typically, this is paid by the seller because they are responsible for these Doc Stamps. While this is common, whoever pays for this can get negotiated between the buyer and the seller, which must be outlined in the purchase agreement. There are a number of exemptions to the transfer tax, which include the deed being changed or an owner being added to the deed.
In Florida, there are two distinct transfer tax rates:
- Miami-Dade County: If the property is within Miami-Dade county, the transfer tax is 0.6% of the sale price.
- Outside Miami-Dade County: Anywhere outside Miami-Dade county has a transfer tax of 0.7% of the sale price.
Pennsylvania (PA) Transfer Tax
In Pennsylvania, the transfer tax is split between the seller and the buyer and both of them are held accountable for its payment. This means that the transfer tax is often split evenly between them, but this is negotiable and will change according to the real estate market.
The transfer tax payment in Pennsylvania is split between the state, local municipality, and school district. At the state level, the transfer tax is 1% of the sale price. However, at the county level, the transfer tax will vary.
Names with bullet points are cities, municipalities, townships, etc. in the county above it.
|County||Local Tax||School Tax||State Tax||Total|
|• Bellevue Borough||1%||0.5%||1%||2.5%|
|• Bethel Park Municipality||1%||0.5%||1%||2.5%|
|• Greentree Borough||1%||0.5%||1%||2.5%|
|• Hampton Township||1%||0.5%||1%||2.5%|
|• McCandles Township||1%||0.5%||1%||2.5%|
|• Mckeesport City||1.5%||0.5%||1%||3%|
|• Monroeville Municipality||1%||0.5%||1%||2.5%|
|• Mt. Lebanon Municipality||1%||0.5%||1%||2.5%|
California (CA) Transfer Tax
In California, the transfer tax is typically paid by the seller as stated in most purchase agreements, but this is negotiable. If the seller is exempted from paying the transfer tax, then the buyer will have to pay it. If both the buyer and seller do not pay the transfer tax, the responsibility to pay it will default to the seller, so it is important to ensure that your purchase agreement outlines who will pay for it.
All counties pay the same state transfer tax rate of .11%, but each county may charge an additional transfer tax rate.
|County||County Transfer Tax|