Taxes when buying a house in Tennessee

In Tennessee the buyer pays both state taxes: the recordation tax of $0.37 per $100 of the price, and the mortgage tax of $0.115 per $100 of the loan above the first $2,000.

Purchase price

State

Down payment

Loan amount: $320,000. Some states tax the mortgage, so the loan size changes the result there. Paying cash? Enter 100.

Estimated taxes when you buyTennessee · Rates verified November 2026

Pay to the order ofState and county tax offices$1,846

One thousand eight hundred forty-five and 70/100 dollars

On a $400,000 purchase with a $320,000 loan

Taxes the buyer pays
Transfer tax, buyer's share$0.37 per $100 (0.37%)	$1,480
Mortgage (indebtedness) tax$0.115 per $100 of the loan above $2,000	$365.70
Total buyer taxes	$1,845.70

Taxes only. Lender fees, title insurance, flat recording fees and prepaid property tax are separate closing costs.

What a Tennessee home buyer is taxed on

Buyer's taxes: Transfer tax: $0.37 per $100 (0.37%). The buyer. Tennessee law makes the person receiving the deed responsible.
Mortgage (indebtedness) tax: $0.115 per $100 of the loan above $2,000, charged on the loan amount.
Transfer tax: The buyer. Tennessee law makes the person receiving the deed responsible.
Sales tax: None. A home is real estate, and sales tax does not apply to it.
Official source: Tennessee Department of Revenue, recordation tax
Last verified: November 2026

Tennessee buyer taxes at common prices

Purchase price	Loan with 20% down	Buyer's taxes
$150,000	$120,000	$690.70
$250,000	$200,000	$1,152.70
$400,000	$320,000	$1,845.70
$600,000	$480,000	$2,769.70
$1,000,000	$800,000	$4,617.70

Questions Tennessee buyers ask

Do buyers pay transfer tax in Tennessee?

The buyer. Tennessee law makes the person receiving the deed responsible.

Is there a mortgage tax in Tennessee?

Yes. The indebtedness tax is $0.115 for every $100 of the loan, with the first $2,000 exempt. On a $240,000 loan it comes to $273.70.

Is there sales tax when you buy a house in Tennessee?

No. Sales tax applies to goods and some services, and a house is real estate, which no state taxes that way. The one-time taxes a Tennessee buyer does pay are listed on this page.

How much tax does a buyer pay at closing in Tennessee?

On a $400,000 home bought with 20% down, a Tennessee buyer pays about $1,845.70 in state and local taxes: $1,480 in transfer tax, buyer's share and $365.70 in mortgage (indebtedness) tax. Lender fees, title insurance and prepaid property tax come on top.

Selling in Tennessee? Use the Tennessee transfer tax calculator.