​When purchasing or refinancing a home in Georgia, there’s another mandatory tax that often appears on the closing statement: the Georgia Intangible Mortgage (Recording) Tax. This is separate from the real estate transfer tax tied to ownership transfers, and it applies specifically to mortgage loans rather than the property sale itself.

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Understanding how this tax works — who pays it, how it’s calculated, and how recent law changes affect it — helps both buyers and sellers anticipate closing costs and avoid surprises.

 

You can learn more about the real estate transfer tax here Georgia Property Transfer Tax Guide →

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For a full breakdown of all buyer and seller costs, see my Complete Georgia Closing Costs Guide→ 

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My blogs on the subject starting with Georgia Real Estate Closing Costs Explained: Transfer Tax, Title Insurance, and Mortgage Tax

 

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What Is the Georgia Intangible Mortgage Recording Tax?

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The Intangible Recording Tax is a one-time tax imposed by the State of Georgia on long-term mortgage loanssecured by real estate. It is sometimes colloquially called a “mortgage tax,” though it is technically a recording tax tied to the loan instrument. 

This tax must be paid before the mortgage (security instrument) can be recorded with the Clerk of Superior Court. If the tax is not paid, the lender’s lien may not be properly perfected — which could create serious legal and foreclosure issues later. 

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How Is the Intangible Tax Calculated?

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Georgia’s intangible tax rate is:

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• $1.50 for each $500 (or fraction thereof) of the face amount of the loan secured by the recorded security deed. 

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In practical terms, this equates to about 0.30% of the loan amount, though the exact dollar amount depends on rounding up to each $500 increment. 

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Cap on Tax

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There is a maximum cap of $25,000 per single loan/security instrument. 

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Example Calculations

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Loan Amount

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$200,000 Loan Amount
Estimated Intangible Tax: ~$600

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$300,000 Loan Amount
Estimated Intangible Tax: ~$900

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$500,000 Loan Amount
Estimated Intangible Tax: ~$1,500

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These estimates demonstrate how the tax scales with loan size. This is often passed through to the borrower as part of closing costs, even though the lender is technically liable under state law. 

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Who Is Responsible for Paying This Tax?

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Legally, the holder of the note (the lender) is obligated to pay the intangible tax at the time of recording. However, in virtually all mortgage transactions, that cost is passed on to the borrower and appears as part of the borrower’s closing costs. 

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It’s not considered a finance charge under federal lending rules, meaning it does not impact APR disclosures — yet it must be paid before recording can occur. 

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Long-Term vs. Short-Term Loans

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Traditionally, only long-term notes secured by real estate were subject to this tax — meaning loans with principal due over a period longer than three years. However, effective July 1, 2025, Georgia amended this rule:

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• Loans with a maturity of 62 months (just over 5 years) or less are now treated as short-term and generally exempt from intangible tax.

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This change means many 5-year fixed loans, construction loans, and intermediate financing structures that would have previously triggered intangible tax may now avoid it — potentially saving thousands in closing costs for borrowers. 

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Exemptions & Strategic Planning

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There are a few common exemptions and planning opportunities:

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• Short-term loan exemption — if loan principal is due within 62 months. 

• Refinancing exemptions in certain structured situations where the tax was already paid on existing debt. 

• Certain entity exemptions — e.g., federally chartered credit unions or government entities — may avoid the tax. 

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Clients considering refinancing, construction financing, or unusual mortgage structures should talk with their lender and closing agent early to determine whether the intangible tax applies and how it’s calculated.

 

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When and How It Is Paid

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The intangible tax is collected by the Clerk of Superior Court (or other designated county officer) before the mortgage instrument is accepted for recording. The title company or closing attorney calculates and remits the tax as part of closing. 

 

Failure to pay the tax can bar foreclosure rights and complicate lien enforcement, making timely payment critical. 

 

Key Takeaways for Buyers and Sellers

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• The Georgia intangible mortgage tax applies to long-term loans, not the property sale. 

• It is typically calculated at $1.50 per $500 of loan amount, about 0.30% of the mortgage principal. 

• Most borrowers pay this tax at closing as part of loan closing costs. 

• Effective mid-2025, loans with maturities up to 62 months are generally exempt, reducing costs for many borrowers. 

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Clear communication about the intangible tax ahead of closing ensures buyers understand both sides of transaction costs — not just property price and lender fees, but also mandatory state-imposed recording taxes.

 

If you’re planning a purchase and want a clear breakdown of your total closing costs—including loan-related taxes like this one—I’m happy to walk you through the numbers before you make an offer.