# Transfer tax

> A transfer tax is a state or local tax on the sale of real estate, based on the price and paid when the deed is recorded. Rates and payers by state.

URL: https://mortgage-math-us.com/glossary/transfer-tax/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

A **transfer tax** is a state or local tax charged when real estate changes hands, usually a percentage of the sale price collected when the deed is recorded. Rates and the party who pays (buyer, seller or both) are set by state law, local custom and your contract, and 16 states have no statewide transfer tax at all.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Delaware statewide rate | 2.5% | [Delaware Division of Revenue](https://revenue.delaware.gov/first-time-home-buyer-tax-credit/) | Apr 16, 2024 |
| Pennsylvania state rate | 1% | [Pennsylvania Department of Revenue](https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/realty-transfer-tax) | Oct 28, 2026 |
| Washington, first bracket | 1.1% | [Washington Department of Revenue](https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax) | Oct 28, 2026 |

## What it costs in a few states

*Statewide transfer tax on a $360,000 sale (local taxes not included)*

| State | Rate on file | Tax | Paid by (default) |
|---|---|---|---|
| Delaware | 2.5% | $9,000 | Split |
| Washington | 1.1% | $3,960 | Seller |
| Pennsylvania | 1% | $3,600 | Split |
| New Hampshire | 1.5% | $5,400 | Split |
| Vermont | 0.5% | $3,352 | Buyer |
| Michigan | 0.86% | $3,096 | Seller |
| Texas | 0% | $0 | — |

Washington and Vermont use graduated rates, so the rate shown is the first bracket; the tax column applies the full schedule. The payer is the default under state law or custom, and your purchase contract can change it. Many counties and cities add their own tax on top, so check your [state page](https://mortgage-math-us.com/location/), for example [Pennsylvania](https://mortgage-math-us.com/location/pennsylvania/).

## On your Loan Estimate

Transfer taxes appear in section E, “Taxes and Other Government Fees.” They’re in the group of charges that can’t increase at all from the Loan Estimate to closing unless a valid changed circumstance occurs. A [mortgage recording tax](https://mortgage-math-us.com/glossary/mortgage-recording-tax/), charged on the loan rather than the price, is a separate line in some states. The [closing cost calculator](https://mortgage-math-us.com/tools/closing-cost-calculator/) computes both for your state.

## Related terms

- [Recording fee](https://mortgage-math-us.com/glossary/recording-fee/) and [closing costs](https://mortgage-math-us.com/glossary/closing-costs/)

## Sources

- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [Texas Constitution, Art. VIII §29](https://capitol.texas.gov/tlodocs/84R/amendments/html/SJ00001H21.HTM) — State real estate transfer tax (Jan 1, 2016)
- [Delaware Division of Revenue](https://revenue.delaware.gov/first-time-home-buyer-tax-credit/) — State real estate transfer tax (Apr 16, 2024)
- [Washington Department of Revenue](https://dor.wa.gov/taxes-rates/other-taxes/real-estate-excise-tax) — State real estate transfer tax (Oct 28, 2026)
- [Pennsylvania Department of Revenue](https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/realty-transfer-tax) — State real estate transfer tax (Oct 28, 2026)
- [New Hampshire Department of Revenue Administration](https://www.revenue.nh.gov/taxes-glance/real-estate-transfer-tax) — State real estate transfer tax (Oct 28, 2026)
- [Vermont Department of Taxes](https://tax.vermont.gov/property/property-transfer-tax) — State real estate transfer tax (Oct 28, 2026)
- [Michigan Department of Treasury](https://www.michigan.gov/taxes/business-taxes/misc/state-real-estate-transfer-tax-srett) — State real estate transfer tax (Oct 28, 2026)
- [CFPB: Can my final mortgage costs increase from what was on my Loan Estimate?](https://www.consumerfinance.gov/ask-cfpb/can-my-final-mortgage-costs-increase-from-what-was-on-my-loan-estimate-en-172/)

_General information, not financial advice._