Transfer Tax When Selling a House — State Rules & Who Pays
Updated 2026-09-25
Transfer tax is the closing line most sellers discover last. The spread is enormous: 14 states charge no state-level transfer tax at all, while stacked state + local rates reach 4% or more of the sale price — Delaware's combined 4.0% or Philadelphia's 4.278% at the top of the cited compilations. On a $400,000 sale that's a $0–$16,000+ swing, and who pays it is custom, not universal law.
The range, in one table
| Basis | Published figure | Source type |
|---|---|---|
| States with no state-level transfer tax | 14 states (0%) | statutory compilation |
| Top combined state + local rate | 4.0%+ (Delaware 4.0%; Philadelphia 4.278%) | compilation — verify with the state/local revenue authority |
| Who pays | state custom; often split (DE 50/50) | state norms — a contract term, not data |
Honesty flag: transfer-tax percentages here are compilation-sourced (PropertyShark / Wikipedia / Land Can charts, retrieved 2026-09-25). Compilations lag rate changes and miss local add-ons — verify any specific rate with the state's revenue department or your closing agent before relying on it. This page intentionally does not print a 50-state rate table for that reason.
Three things that move your number
- Local layers stack. County and city add-ons (NYC, Philadelphia, Washington State's graduated excise tiers, Pennsylvania boroughs) can exceed the state rate — a state-level number alone underestimates the real line.
- Who pays is custom. Seller-pays is common, but splits exist (Delaware customarily splits 50/50) and everything is negotiable in the purchase contract. State custom is not law in most states.
- It interacts with the rest of closing costs. In high-title-premium states (Texas, Florida) the transfer-tax line is small but title costs are large; the reverse holds in low-cost states. Look at the whole closing-costs-by-state picture, not one line.
Where transfer tax fits your net
Transfer tax is one deduction between your sale price and your proceeds. Work the whole stack with the home sale proceeds calculator, see the full buyer-vs-seller split in who pays closing costs, and compare your sale-price assumptions against the market in home value trends. Deciding whether to sell at all? The sell vs stay calculator prices the transaction costs — including transfer tax — against staying put.
FAQs
What is a transfer tax on a house?
A tax some states, counties, and cities charge when real estate changes hands — typically a percentage of the sale price, collected at closing and usually recorded on the settlement statement. It is separate from title insurance, recording fees, and agent commissions.
Which states have no transfer tax?
Per the compilation sources cited here, 14 states charge no state-level real-estate transfer tax. Note the trap: a state with no transfer tax can still have high closing costs for other reasons — Texas has no transfer tax but promulgated (fixed) title premiums, for example.
Who pays the transfer tax, buyer or seller?
It depends on state custom, and custom is negotiable in the purchase contract. In many states the seller pays; some split 50/50 by law or convention (Delaware's 4.0% combined rate is customarily split between buyer and seller). Confirm the local convention with your title or escrow officer.
How do I estimate my transfer tax before selling?
Use the state's published rate against your expected sale price, then add any county or municipal add-on — local layers can exceed the state rate (New York City and Pennsylvania boroughs are the classic examples). Because rates change and compilations lag, verify the current rate with your state's revenue department or your closing agent before relying on a number.
Sources
- PropertyShark — Real estate transfer taxes by state (compilation)
- Wikipedia — Real estate transfer tax (state compilation)
- Land Can — state transfer-tax chart (compilation)
- Bankrate — Average closing costs by state (LodeStar loan-level analysis)
Compilation sources retrieved 2026-09-25 via the GR closing-costs research facts file. Figures are compilation ranges, not legal advice — confirm current rates with your state revenue department or closing agent. Estimate only.