Who pays the transfer tax, the buyer or the seller?

In most states the seller pays the transfer tax. That is the short answer, and it holds in 25 states and Washington, D.C. The rest fall into three smaller groups, and the difference can be worth thousands of dollars.

States where the seller pays

Florida, Georgia, Illinois, Michigan, New Jersey, New York, North Carolina, Ohio, Washington and Wisconsin are among the states where the seller pays the whole tax. In some of them the statute names the seller. In others the law makes both sides liable and local custom puts it on the seller.

States where the buyer pays

Tennessee and Vermont put the tax on the buyer by law. In Alabama and Colorado the buyer pays by custom. A seller in these states normally owes nothing.

States that split it

New Hampshire and Maine tax each side separately, half each. In Delaware, Pennsylvania, Arkansas and Maryland an even split is the standard arrangement. Delaware's 4% total is the highest in the country, so even half of it is a large line on the closing statement.

States with no transfer tax

Alaska, Idaho, Indiana, Kansas, Mississippi, Missouri, Montana, New Mexico, North Dakota, Texas, Utah and Wyoming charge no transfer tax. Arizona charges only a $2 filing fee. Louisiana and Oregon have none at the state level, with one local exception each: New Orleans and Washington County.

Custom is not law

Outside the states where a statute fixes the payer, who pays is a term of the contract like any other. In a slow market a seller may agree to cover the buyer's share. In a hot one the buyer may offer to cover the seller's. New-construction condos in New York City are a well-known case where buyers are asked to pay the seller's transfer taxes.

If the contract is silent, the closing agent follows local custom. Read the purchase agreement before you sign it, and ask your agent which line the tax will appear on.

Run your own numbers in the calculator, or look up transfer tax by state.

Updated November 2026.