When selling a home in Minnesota, you’ll have to deal with various fees, including real estate transfer taxes. A real estate transfer tax is a government-imposed fee collected when property ownership changes hands. These taxes are typically calculated as a percentage of the sale price and can vary by state, county, or city. If you’re preparing to sell your home, knowing the ins and outs of Minnesota’s real estate transfer tax is essential for budgeting and determining your bottom line. Our short guide will break down how these taxes work, who is responsible for paying them, and what additional transfer-related fees you might encounter in Minnesota. We’ll also cover potential exemptions and whether any portion of the tax is deductible. A real estate transfer tax is a state or local tax imposed when property ownership is officially transferred from one person to another. According to the Federal Trade Commission, this tax applies when the title — the legal documentation proving ownership — passes to a new owner. The amount owed typically depends on the location of the property and the applicable state, county, or city regulations. Transfer taxes vary by jurisdiction and are often calculated as a percentage of the property’s sale price. These taxes help generate revenue for local and state governments, funding public services and infrastructure. Whether you’re selling a home in Minnesota or elsewhere, it’s important to understand how these taxes may affect your closing costs and overall sale proceeds. Who pays the Minnesota real estate transfer tax will depend on the state. In Minnesota, depending on the terms of the sales agreement, the buyer, the seller, or both can be responsible for any transfer taxes.What are transfer taxes?
Who pays for transfer taxes?
