US Real Estate Transfer Tax Overview
Real estate transfer taxes (also called deed transfer taxes, stamp taxes, or conveyance fees) are levied when property changes hands. They are separate from property taxes and are typically a one-time closing cost. Rates vary enormously by state and even city.
Transfer Tax Rates by Selected State
| State | Rate | Notes |
|---|---|---|
| Texas, Florida, Idaho | 0% | No transfer tax |
| Pennsylvania | ~2% | State 1% + local 1% |
| New York City | 1%–2.075% | Plus state tax |
| New Jersey | 1%–1.5% | Progressive rate |
| California | ~0.11% | Plus county/city |
Transfer taxes are typically paid at closing. In many states they are split between buyer and seller or negotiated as part of the purchase agreement. First-time homebuyer exemptions may apply in some states.
Frequently Asked Questions
No. Transfer tax is a one-time tax paid at the time of purchase. Property tax is an annual tax based on the assessed value of the property, paid by the owner each year.
Generally no. Transfer taxes are typically paid as an upfront closing cost and are not rolled into the mortgage principal. Budget for them separately as part of your closing costs.