Buying or selling in Georgia comes with a few taxes that show up at closing. If you understand them early, you can plan your cash-to-close and avoid surprises. Whether you are the seller weighing net proceeds or the buyer setting a budget, you deserve a clear, plain-English guide. In this post, you will learn what Georgia’s real estate transfer tax and intangible recording tax are, who typically pays, how much they cost, and what changed for short-term loans. Let’s dive in.
Georgia real estate transfer tax
What it is
Georgia’s real estate transfer tax is an excise tax due when a deed or similar document transfers ownership and the consideration is more than $100. The tax must be paid before the deed can be recorded. You can find the official overview on the Georgia Department of Revenue’s page on the real estate transfer tax.
Who pays
By statute, the person who executes the deed, usually the seller, is liable for the tax. In practice, your purchase agreement can shift this cost to the buyer. Title companies or county clerks confirm payment before recording. See DOR guidance on who is liable and how the tax is handled.
Rate and simple examples
- Rate: $1.00 for the first $1,000 of value, plus $0.10 for each additional $100. Use the greater of the sale price or fair market value when applicable.
- Example 1: Sale price $250,000 → $1 for the first $1,000 + $0.10 × 2,490 = $1 + $249 = $250.
- Example 2: Sale price $200,000 → $1 + $0.10 × 1,990 = $200. These examples follow the DOR’s published formula on the real estate transfer tax.
How it is filed and paid
Before recording, the PT-61 transfer tax declaration is filed electronically through the Georgia Superior Court Clerks’ Cooperative Authority. Most closings handle this for you, but you can learn more at the GSCCCA’s PT‑61 eFiling information.
Exemptions and local distribution
Georgia law lists exemptions, such as certain government transfers, gifts, some divorce-related transfers, and others. For the statutory list, see O.C.G.A. §48‑6‑2 on Justia’s code page. Collected transfer tax is distributed among state and local governments using formulas that consider local millage rates, as noted by the Georgia Municipal Association’s municipal revenues guidance.
Georgia intangible recording tax on mortgages
What it is
The intangible recording tax is a separate excise tax due when a security instrument that secures a long‑term note is recorded against real estate. The county collecting officer, usually the Clerk of Superior Court, collects the tax at recording. See the DOR page on the intangible recording tax.
Who is responsible
The holder of the note, typically the lender, is liable for the tax at recording. Many lenders pass the cost to the borrower in loan documents. The tax must be paid before the instrument is recorded. Learn more from DOR’s intangible recording tax overview.
Rate, cap, and examples
- Rate: $1.50 per $500 of the note amount, or fraction thereof. Round up to the next $500 increment.
- Maximum tax on a single note: $25,000.
- Penalty for nonpayment: 50 percent of the tax due, plus 1 percent interest per month from the due date.
- Example 1: $300,000 note → 300,000 ÷ 500 = 600 → 600 × $1.50 = $900.
- Example 2: $350,250 note → 350,250 ÷ 500 = 700.5 → round up to 701 → 701 × $1.50 = $1,051.50. Formulas and examples are from DOR’s intangible recording tax guidance.
Timing and where to record
Security instruments must be recorded in the county where the property is located within 90 days of execution. If property spans more than one county, the tax is prorated by county. The collecting officer attaches a certificate after payment. See DOR’s intangible recording tax page for procedures.
New 62‑month exemption threshold
Effective July 1, 2025, HB 586 updated Georgia law so that notes maturing within 62 months are considered short‑term and are generally exempt from the intangible recording tax. Previously, the short‑term threshold was 36 months. You can review HB 586 on LegiScan.
How these taxes show up at closing
- Transfer tax: Seller is liable by statute, yet many contracts shift it to the buyer. Your purchase agreement controls who pays.
- Intangible recording tax: The lender is liable at recording but usually passes it to the borrower. Your loan documents will show this.
- Title and escrow: Title companies typically calculate and remit both taxes at closing along with standard county recording fees.
Quick pre-closing checklist
- Confirm in writing who pays the transfer tax in your purchase agreement.
- Ask your lender if the intangible tax will be charged to you and for how much.
- Have your title company verify the transfer tax and county recording fees.
- If you are recording soon after July 1, 2025, ask how the 62‑month rule affects your loan.
- For county specifics, check the Clerk of Superior Court or the GSCCCA’s PT‑61 resources.
Common scenarios and examples
Selling a Georgia home
If you sell for $250,000, the transfer tax would be $250 using the state formula. Contracts often assign this to the buyer, but the statute places liability on the seller. Clarify before you sign.
Buying with a mortgage
If your loan is $300,000, the intangible tax would be $900 using the DOR formula. Your lender may pass this cost to you at closing.
Refinances and modifications
Refinances can trigger intangible tax if a new taxable note is recorded. There are procedures that may avoid duplicate tax in certain cases. Have your lender and title company confirm how your refinance will be handled using DOR rules on the intangible recording tax.
Tax return basics for buyers and sellers
For sellers, transfer taxes you pay are commonly treated as selling expenses that reduce your amount realized for federal tax purposes. For buyers, transfer taxes you pay are usually added to your cost basis. These rules are explained in IRS Publication 523. Transfer and intangible taxes are generally not itemized deductions. Because tax treatment depends on your facts, consult a CPA or tax attorney.
Related Georgia rules to keep separate
Georgia also has a withholding rule for sales by nonresidents. This is separate from transfer and intangible taxes. If you are a nonresident seller, review DOR guidance and the state rule on withholding for nonresident sellers or speak with your tax advisor.
When you want a smooth, well-planned closing in Northeast Georgia, work with a team that watches the details. If you are planning a sale or purchase, connect with Jennifer Westmoreland for clear guidance and concierge-level support.
FAQs
What is Georgia’s real estate transfer tax and how is it calculated?
- It is an excise tax due when ownership transfers. The rate is $1.00 for the first $1,000 plus $0.10 for each additional $100, using the greater of price or fair market value when applicable. See DOR’s overview of the real estate transfer tax.
Who typically pays the transfer tax in Georgia home sales?
- The seller is legally liable under the statute, but many contracts shift the cost to the buyer. Payment and a PT‑61 filing are required before recording. Learn more on the DOR page for the real estate transfer tax and the GSCCCA’s PT‑61 eFiling information.
What is the intangible recording tax on Georgia mortgages?
- It is a tax collected when a security instrument for a long‑term note is recorded. The rate is $1.50 per $500 or fraction, capped at $25,000, and the lender is liable but often passes the cost to the borrower. See DOR’s intangible recording tax.
How did HB 586 change the intangible tax rules?
- For instruments recorded on or after July 1, 2025, notes maturing within 62 months are treated as short‑term and are generally exempt from the intangible recording tax. Review HB 586 on LegiScan.
Are transfer and intangible taxes the same as county recording fees?
- No. These are taxes. County recording fees are separate administrative charges. Your title company will list both on your closing statement.
Do refinances always trigger the intangible tax in Georgia?
- Not always. Some refinances or modifications may avoid duplicate tax under DOR procedures. Your lender and title company should confirm using DOR rules on the intangible recording tax.
Where can I verify county-specific steps for the transfer tax?
- Check the GSCCCA’s PT‑61 eFiling information and contact your county’s Clerk of Superior Court for local procedures and fees.
