​When property changes hands in Georgia, there is a state-imposed tax that applies to the transfer of real estate. This charge often surprises buyers and sellers because it is not discussed as frequently as property taxes or mortgage costs. Understanding how this tax works helps avoid confusion at closing and ensures clients know exactly where their money is going.

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This white paper explains what Georgia’s real estate transfer tax is, how it is calculated, who typically pays it, and how it differs from other taxes that may appear in a real estate transaction.

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​​Transfer Tax vs. Property Tax

 

Transfer Tax
• Paid once at closing
• Based on the sales price
• Required to record the deed

Property Tax
• Paid every year
• Based on the assessed value
• Funds local government services

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Transfer Tax vs. Property Tax

​

Transfer Tax
• Paid once at closing
• Based on the sales price
• Required to record the deed

Property Tax
• Paid every year
• Based on the assessed value
• Funds local government services

​

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​

Transfer Tax vs. Property Tax

 

Transfer Tax

• Paid once at closing
• Based on the sales price
• Required to record the deed

​

Property Tax

• Paid every year
• Based on the assessed value
• Funds local government services

​

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What Is the Georgia Real Estate Transfer Tax?

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Georgia imposes a Real Estate Transfer Tax, sometimes called a deed tax or documentary stamp tax, whenever ownership of real property is legally transferred from one party to another. The tax is required in order for the deed to be recorded with the Clerk of Superior Court in the county where the property is located. Without payment of this tax, the transfer cannot be officially recorded.

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This is a one-time tax that applies at the time of sale or conveyance. It is not an annual tax and should not be confused with property taxes.

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How Is the Transfer Tax Calculated?

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Georgia’s transfer tax is based on the sale price or fair market value of the property being conveyed.

The rate is:

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• $1.00 for the first $1,000 of value

• $0.10 for each additional $100 (or fraction of $100) thereafter

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In practical terms, this equals approximately 0.1% of the sales price.

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Example Calculations

 

 

Sale PriceEstimated GA Transfer Tax

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$300,000 Sale Price:
Estimated Georgia Transfer Tax: $300

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$500,000 Sale Price:
Estimated Georgia Transfer Tax: $500

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$1,000,000 Sale Price:
Estimated Georgia Transfer Tax: $1,000

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Because it scales directly with price, higher-value homes naturally result in a higher transfer tax, but compared to other closing costs, it remains a relatively small line item.

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Who Pays the Transfer Tax?

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Georgia law traditionally places responsibility for the transfer tax on the seller, but like many closing costs, this can be negotiated in the purchase agreement. In most standard transactions, sellers pay this fee as part of their closing costs, and it appears as a debit on the seller’s side of the Closing Disclosure or settlement statement.

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How This Differs From Property Taxes

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It’s common for clients to confuse transfer taxes with property taxes. They are very different:

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Transfer Tax vs. Property Tax

​

Transfer Tax

• Paid once at closing
• Based on the sales price
• Required to record the deed

​

Property Tax

• Paid every year
• Based on the assessed value
• Funds local government services

​

​

​

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The Intangible Recording Tax (Different Tax, Same Closing)

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Georgia also has a separate tax that often appears in financed purchases: the Intangible Recording Tax. This tax applies to new mortgage loans, not to the transfer of ownership itself. It is calculated based on the loan amount and is typically paid by the buyer/borrower.

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This means:

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• Transfer Tax → based on property value

• Intangible Tax → based on loan amount​

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They are unrelated but may both show up on the same closing statement.

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Are There Any Exemptions?

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Certain transfers may be exempt from Georgia’s real estate transfer tax. Common examples include:

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• Transfers between spouses due to divorce

• Transfers into or out of an estate

• Gifts where no money changes hands

• Certain government or non-profit transfers

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Even when exempt, documentation must usually be provided to the county clerk to support the exemption.

 

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When and How Is It Paid?

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The transfer tax is collected at closing and paid to the county clerk at the time the deed is recorded. Buyers and sellers typically never handle this directly; the closing attorney or title company calculates and remits the tax as part of the settlement process.

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Key Takeaways for Buyers and Sellers

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• Georgia does have a state real estate transfer tax

• It equals roughly 0.1% of the sales price

• The seller usually pays, but it is negotiable

• It is required before the deed can be recorded

• It is separate from both property taxes and mortgage-related taxes

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While it is not one of the largest closing costs, it is a mandatory part of most Georgia real estate transactions and should be understood early in the buying or selling process.