If you are a homeowner in Boston who is considering selling your property, you may have wondered about transfer taxes. While there is currently no specific Boston transfer tax, Massachusetts homeowners are still subject to this fee, and you might have questions about what it is, who pays for it, and how it can affect your bottom line. Don’t worry. Our short guide will help demystify the transfer taxes in Beantown, answering questions about possible exemptions, capital gains implications, and more. Real estate transfer taxes are charged by state or local governments when property ownership is transferred from one individual to another. According to the Federal Trade Commission, these taxes are due when the title of a property, essentially the document confirming legal ownership, is officially transferred to a new owner. This can occur through sales, inheritance, or gifting of property. The amount owed in transfer taxes can vary significantly based on the property’s location, as different states, counties, and cities establish their own rates and regulations. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects. The seller of a property (also known as the “grantor”) is responsible for paying transfer taxes in Boston. However, this can vary depending on the terms of the sales agreement.What are transfer taxes?
Who pays for transfer taxes?
