Transfer tax
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Definition
A transfer tax is a local tax that may be charged when real property changes hands. It is a closing-cost item in some places and not a property tax on the assessed value.
In plain English
Some cities, counties, or states charge a tax when a home is sold or otherwise transferred. That charge is a transfer tax. Property tax is the recurring tax on the home’s assessed value. Transfer tax is a transaction tax. Rates are local and are not published here.
Technical definition
The official Closing Disclosure regulation page includes transfer-tax charges among the closing figures and is PRIMARY. CFPB key terms are supporting consumer context for government recording and tax charges.
Why it matters
Cash-to-close surprises often include transfer taxes that do not appear in every market.
Commonly confused with
Sources reviewed
12 CFR 1026.38
Source reviewedSeptember 4, 2026
Mortgage key terms
Source reviewedSeptember 4, 2026
Important note
Transfer taxes are local. Do not publish rates.
Cite as
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