How Georgia Transfer Taxes Work
Georgia property transfers are subject to several taxes and fees that must be paid at closing. Understanding these costs is essential for both buyers and sellers to properly budget for a real estate transaction. The primary tax is the real property transfer tax, commonly known as the documentary stamp tax.
Documentary Stamp Tax (State)
Georgia imposes a statewide transfer tax of $1.00 per $1,000 of the property's sale price (or 0.1%). This is officially called the "real property transfer tax" but is commonly referred to as the documentary stamp tax. This tax is based on the actual consideration paid for the property.
Example: For a home sold for $300,000, the state transfer tax would be ($300,000 / $1,000) × $1.00 = $300.
County Transfer Taxes
Unlike some states, Georgia counties do not impose additional transfer taxes. The $1.00 per $1,000 rate is consistent throughout the state. However, some municipalities may have special district levies that apply to property transfers.
Recording Fees
Each county in Georgia charges recording fees for processing property deeds. These fees vary by county but typically include a base fee plus additional charges per page of the document. Some counties also charge index or search fees. These are generally paid by the party receiving the deed (the grantee/buyer).
Exemptions
Georgia law provides exemptions from transfer taxes in specific circumstances, including transfers between spouses, government entities, charitable organizations, and certain foreclosure situations. These exemptions can significantly reduce or eliminate the transfer tax burden. To claim an exemption, specific language must be included in the deed.
Payment Responsibility
While the responsibility for paying transfer taxes can be negotiated between parties, Georgia custom typically places the burden on the seller for the documentary stamp tax. Recording fees are usually paid by the buyer. Always confirm these details in your sales contract.
County Recording Fees & Examples
Recording fees vary across Georgia's 159 counties. Below are examples from some of the state's most populous counties. These are estimates based on current fee schedules and can change; always verify with the local Clerk of Superior Court.
| County | Base Recording Fee | Per Page Fee | Additional Indexing Fee | Example for 10-page deed |
|---|---|---|---|---|
| Fulton | $10.00 | $2.00 | $5.00 | $35.00 |
| DeKalb | $15.00 | $2.50 | $6.00 | $46.00 |
| Cobb | $12.00 | $2.00 | $4.00 | $36.00 |
| Gwinnett | $10.00 | $2.00 | $5.00 | $35.00 |
| Chatham | $15.00 | $2.50 | $6.00 | $46.00 |
| Clayton | $10.00 | $2.00 | $5.00 | $35.00 |
| Henry | $10.00 | $2.00 | $5.00 | $35.00 |
Example Calculation
For a $350,000 home sale in Fulton County with a 10-page deed and no exemptions:
- State Transfer Tax: $350,000 ÷ 1,000 × $1.00 = $350.00
- Recording Fee: $10.00 (base) + (10 pages × $2.00) + $5.00 (indexing) = $35.00
- Total Estimated Transfer Taxes and Fees: $385.00
Common Exemptions & When They Apply
Georgia law provides several exemptions from transfer taxes that can significantly reduce the cost of property transfers. Understanding these exemptions is crucial for minimizing tax liability. The deed must contain specific language to claim these exemptions.
Transfer Between Spouses
Transfers of real property between spouses are fully exempt from Georgia's transfer tax. This applies whether the transfer is a gift, a sale (even for nominal consideration), or part of a divorce settlement. The deed should state "conveyance between spouses" to claim the exemption.
Government Transfers
Transfers involving government entities at the federal, state, or local level are exempt from transfer taxes. This includes transfers to or from government agencies, as well as transfers resulting from eminent domain proceedings.
Charitable Organizations
Transfers to qualified charitable organizations (those with 501(c)(3) status) are exempt from transfer tax. The deed must reference the charitable nature of the transfer to qualify.
Foreclosure Transfers
Transfers resulting from foreclosure proceedings are exempt from transfer tax. This applies to transfers to the mortgage holder or to a third-party purchaser at a foreclosure sale. The deed should be recorded as a "foreclosure deed" or similar instrument.
Important Note on Exemptions
While transfers between parents and children, or between siblings, may be considered "intrafamily," Georgia law does not provide a specific exemption for these transfers unless they qualify under another exemption category. These transfers are typically taxed at the standard rate.
Scenarios & Sample Calculations
Below are three common scenarios with detailed calculations to illustrate how Georgia transfer taxes apply in different situations. These are for illustrative purposes and based on current Georgia tax laws as of 2023.
Scenario 1: Standard Home Sale
Property Details:
- Sale Price: $425,000
- County: Fulton
- Deed Pages: 12 (estimated)
- No Exemptions
Calculation:
- State Transfer Tax: $425.00
- Recording Fee: $39.00
- Total: $464.00
Scenario 2: Gift Transfer to Child
Property Details:
- Market Value: $350,000
- County: DeKalb
- Deed Pages: 10 (estimated)
- Exemption: None (Intrafamily gifts not exempt in GA)
Calculation:
- State Transfer Tax: $350.00
- Recording Fee: $46.00
- Total: $396.00
Scenario 3: Transfer Between Spouses
Property Details:
- Market Value: $500,000
- County: Cobb
- Deed Pages: 10 (estimated)
- Exemption: Transfer Between Spouses (Full Exemption)
Calculation:
- State Transfer Tax: $0.00 (Exempt)
- Recording Fee: $36.00
- Total: $36.00
