If you’re planning to sell your home in Massachusetts, understanding the costs involved, including real estate transfer taxes, is important. Transfer taxes are fees imposed by state, county, or city governments on transferring property from one owner to another. In Massachusetts, these taxes can vary depending on your property’s location and other factors. Our guide will offer a quick overview of how transfer taxes work in Massachusetts, detailing who is responsible for these costs and what you, as a seller, can expect to pay when you transfer ownership of your property. Real estate transfer taxes are fees levied by government entities when ownership of property is transferred from one party to another. According to the Federal Trade Commission, this tax is typically required at the state or local level when the title to property—essentially your legal right to ownership—changes hands. This tax applies whether you are transferring ownership of a home, land, or other types of real property. The amount owed in transfer taxes can vary widely depending on where the property is located, as each state, county, and city can set its own rates and rules. These taxes are a significant source of revenue for local governments, funding various public services and infrastructure projects. In Massachusetts, the responsibility for paying transfer taxes falls to the seller. Typically, it’s the seller who bears the cost of the transfer taxes, as part of the closing costs associated with selling property. However, the distribution of these fees can be negotiated during the sale process. Since these practices can differ even within the state, it’s essential for both buyers and sellers to understand the local norms and any agreements made during the transaction. Sellers should consult with a real estate professional or attorney to clarify who is responsible for these taxes in their particular sale to avoid any surprises at closing.What are transfer taxes?
Who pays for transfer taxes?
