What It Is

• The deed transfer tax is a fee that is paid to the state, municipality and sometimes school district when a house is sold, to cover administration and oversight fees. It can be thought of as a sales tax on buying and selling a piece of property.
  
  

How Much It Is

• The total amount of a deed transfer tax depends on the location of the property, the selling price of the property and the levies imposed by the state, municipality and school district, if applicable. This is separate from property taxes.
  
  

Who Pays It

• The deed transfer tax is typically divided equally between the seller and the purchaser, but this is dependent upon the terms of the contract. Typically, other arrangements can be made if either party would like a different arrangement, but this must be coordinated in the contract before the purchase can be complete.
  
  

Different Than Property Tax

• The deed transfer tax is not to be confused with traditional property taxes; property tax is nothing more than taxes you pay on the piece of property and is not related to transfer taxes.
  
  

Exemptions

• In some states, the deed transfer tax is not always imposed on property sales between family members. For example, if you sell your home to your child, grandchild, parent or most other family members, the deed transfer tax will not be collected. Your lender or local municipality officials will be able to confirm whether or not this is true in your particular circumstances.