Georgia transfer tax and intangible tax, explained
Two Georgia taxes show up on a home closing. They are easy to mix up, they are calculated differently, and they are usually paid by different people.
The transfer tax
Georgia charges a real estate transfer tax when ownership changes hands. The rate is $1 for every $1,000 of the sale price — one tenth of one percent. It is paid when the deed is recorded with the clerk of the superior court in the county where the home sits.
The tax is figured on the price after deducting any liens or encumbrances the buyer takes over — in an ordinary sale where the seller's loan is paid off, that is simply the full price.
| Sale price | Transfer tax |
|---|---|
| $250,000 | $250 |
| $350,000 | $350 |
| $500,000 | $500 |
| $750,000 | $750 |
Who pays it
In Georgia the seller customarily pays the transfer tax, and the standard purchase agreements reflect that. It is still a negotiable term: the contract can say otherwise, and in some new-construction contracts the builder's own form allocates costs differently. Read the closing-cost section of whatever you sign.
The intangible recording tax
The tax a Georgia buyer usually pays is a different one: the intangible recording tax on the mortgage. It is $1.50 for every $500 of a long-term loan secured by Georgia real estate — 0.3% of the loan amount — capped at $25,000. It is due when the security deed is recorded at closing.
Because it is charged on the loan, not the price, a bigger down payment lowers it and a cash purchase avoids it entirely.
| Loan amount | Intangible recording tax |
|---|---|
| $200,000 | $600 |
| $300,000 | $900 |
| $400,000 | $1,200 |
| $600,000 | $1,800 |
Side by side
| Transfer tax | Intangible recording tax | |
|---|---|---|
| Charged on | Sale price | Mortgage amount |
| Rate | $1 per $1,000 | $1.50 per $500 |
| Usually paid by | Seller | Buyer (if financing) |
| Cash purchase | Still due | Not due |
| Cap | None | $25,000 |
What else is on the government line
Your Loan Estimate also shows recording fees charged by the county clerk to record the deed and security deed. Those are set by the county and collected by your closing attorney. Georgia does not add a separate city or county transfer tax on top of the state transfer tax.
For the full picture of what a buyer pays, see Georgia closing costs for buyers, or the every-cost checklist from offer to keys.
Refinancing and assumptions
The intangible tax applies to new money. When you later refinance, the tax generally applies only to any amount above the unpaid balance of the existing loan being refinanced with the same lender — your closing attorney will calculate it. If you assume a seller's loan, ask the attorney how the assumption and any second loan for the gap will be taxed and recorded.
Worked example: both taxes on one purchase
Take a $425,000 home bought with 10% down, so a $382,500 loan. Here is the statute arithmetic, step by step, so you can repeat it with your own numbers.
- Transfer tax: $425,000 ÷ 1,000 = 425, × $1 = $425. Customarily on the seller's side of the settlement statement.
- Intangible recording tax: $382,500 ÷ 500 = 765, × $1.50 = $1,147.50. Customarily on the buyer's side.
- Cap check: the intangible tax reaches its $25,000 cap only on a loan of about $8.33 million, so the cap almost never matters on a home purchase.
- Cash alternative: buy the same home for cash and the intangible tax is $0; the $425 transfer tax is still due on the deed.
- Bigger down payment: at 20% down the loan is $340,000 and the intangible tax falls to $1,020 — a $127.50 saving, which is real but small next to the other effects of a larger down payment.
How rounding works
Both taxes count any fraction of a bracket as a whole one. The intangible tax is $1.50 for each $500 or fraction of $500, so a $382,750 loan is taxed as $383,000: 766 × $1.50 = $1,149. The transfer tax is written as $1 for the first $1,000 and 10 cents for each additional $100 or fraction of $100, so it rounds up to the next $100 of price. The differences are a few dollars, but they explain why a settlement statement may not match a calculator to the penny.
Negotiating who pays
Because Georgia custom puts the transfer tax on the seller, buyers rarely need to think about it. It comes up in three situations: a for-sale-by-owner seller who wants the buyer to cover all closing costs, a builder contract that assigns costs differently, and a negotiation where the buyer offers to pick up some of the seller's costs to make an offer stand out. In each case it is a few hundred dollars per $100,000 of price — small enough to be a useful sweetener, not large enough to win an offer on its own.
The intangible tax is harder to shift, because it is the buyer's loan that triggers it. A seller can still cover it indirectly through a seller concession toward your closing costs, within your loan program's limits.
Questions to ask your closing attorney
- Which side of the settlement statement shows the transfer tax and the intangible tax?
- Is the taxable amount being rounded, and to what?
- Are there county recording fees in addition, and how much?
- If I am assuming a loan or taking a second mortgage, how is each recorded and taxed?
- Will I receive copies of the recorded deed and security deed, and when?
Common questions
How much is the transfer tax in Georgia?
$1 per $1,000 of the sale price, or 0.1%. On a $400,000 home it is $400.
Does the buyer or seller pay transfer tax in Georgia?
The seller customarily pays it, but the purchase contract can assign it to either party.
What is the intangible tax on a mortgage in Georgia?
$1.50 per $500 of the loan amount, which works out to 0.3%, with a maximum of $25,000. It is paid when the security deed is recorded and is normally the buyer's cost.
Do cash buyers pay the intangible tax in Georgia?
No. The intangible recording tax is charged on a recorded loan, so a cash purchase does not trigger it. The transfer tax on the deed is still due.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.