Selling your home in Georgia can be complicated. The time it takes to make a sale, combined with the number of fees and costs to consider can be overwhelming. One fee that you might not have considered is the real estate transfer tax. Transfer taxes are fees imposed by the state, county, or city when property changes hands. They are typically calculated based on the property’s sale price or its assessed value, though it will depend on where you are location. This guide will offer a quick look at how transfer taxes work in Georgia, giving you an idea of what you might be expected to pay in the Peach State. Real estate transfer taxes are imposed by state, county, or city governments when the ownership of a property is transferred from one individual to another. Defined by the Federal Trade Commission as state or local taxes payable when title to property passes from one owner to another, these taxes are typically based on the property’s sale price or assessed value. The actual amount owed can vary significantly depending on where the property is located, as each jurisdiction has its own rules and rates. The primary purpose of transfer taxes is to generate revenue for local governments. This revenue supports various public services and infrastructure projects within the community. In Georgia, the seller is liable for the state’s transfer tax (also referred to as an excise tax.) However, this is not mandatory and it is not uncommon for the seller and the buyer to come to terms in the purchase agreement to pass the responsibility to the buyer.What are transfer taxes?
Who pays for transfer taxes?
