Are you budgeting for a Buckhead closing and wondering what Georgia’s transfer tax and intangible tax will mean for your bottom line? You are not alone. These two line items show up often, and the names can be confusing. By the end of this guide, you will know what each tax is, when it applies, who typically pays in Atlanta-area deals, and how to estimate your numbers with simple examples. Let’s dive in.
The two Georgia taxes at closing
Deed transfer tax at a glance
The deed transfer tax is tied to conveying the property to a new owner and recording the deed. The base is usually the purchase price or the value on the deed. In many Georgia transactions the seller covers deed-related transfer costs, but this is negotiable and should be spelled out in your purchase and sale agreement. County recording fees are separate and vary by county, so always confirm the current Fulton County amounts before you rely on an estimate.
Intangible recording tax at a glance
The intangible recording tax is a state tax on new mortgage debt that is secured by a recorded security deed. It applies when a new mortgage is recorded, and it is typically paid by the borrower at closing. This tax is separate from county recording fees and from title insurance premiums, which appear as their own line items on your closing statement.
Who typically pays in Buckhead
Local practice matters in Atlanta. While your contract controls the final answer, here is what you often see:
- Seller side: real estate commission, payoff of any existing loans, prorated taxes and dues, and deed transfer costs if the contract assigns them to the seller.
- Buyer side: lender fees, title insurance, recording fees for the mortgage documents, inspections and appraisal, and the intangible recording tax if there is a new loan.
Always confirm your specific responsibilities with your agent and closing attorney, and review the contract language that allocates closing costs.
How the taxes are calculated
County and state schedules can change. Verify exact numbers with the title company, your closing attorney, or the Fulton County Clerk of Superior Court before you finalize a budget.
- Intangible recording tax example formula used by many title companies: loan principal divided by 500, multiplied by 1.50. That equals about 0.3 percent of the loan amount. Treat this as an illustrative industry example and confirm the current rule before closing.
- Deed transfer tax and recording fees: often shown as a fee per 1,000 dollars of price or as flat recording fees plus small per-page charges. Your title company will provide a precise breakdown for Fulton County.
For reference and updates, you can check the Fulton County Clerk of Superior Court, the Georgia Department of Revenue, and the Georgia Superior Court Clerks’ Cooperative Authority. You can also ask a reputable title company, such as First American or Stewart, to run a preliminary estimate for your file.
Illustrative Buckhead examples
The following are examples only. They use a common intangible tax formula of 0.3 percent of the new loan amount and a simple deed transfer example of 0.1 percent of the purchase price. Your actual figures may differ.
$500,000 purchase price
- Example deed transfer cost at 0.1 percent: $500 (often assigned to the seller in local custom, but negotiable).
- New mortgage at 80 percent loan-to-value: $400,000.
- Example intangible tax at 0.3 percent of loan: $1,200.
$750,000 purchase price
- Example deed transfer cost: $750.
- New mortgage at 80 percent: $600,000.
- Example intangible tax: $1,800.
$1,000,000 purchase price
- Example deed transfer cost: $1,000.
- New mortgage at 80 percent: $800,000.
- Example intangible tax: $2,400.
$2,000,000 purchase price
- Example deed transfer cost: $2,000.
- New mortgage at 80 percent: $1,600,000.
- Example intangible tax: $4,800.
These examples show how the intangible tax, which is tied to the loan amount, can exceed the deed transfer cost, which is tied to price. If you pay cash, there is no new mortgage so the intangible tax does not apply. Standard deed recording fees would still apply.
Cash, refinance, and assumptions
- Cash purchases: no new loan means no intangible tax, but you will still see deed recording fees.
- Refinances: special rules can apply, especially when refinancing with the same lender. Ask your title or closing counsel whether intangible tax is due.
- Loan assumptions and transfers: certain assumptions may affect tax applicability. Your attorney or title company can confirm any exemptions.
Other closing costs to expect in Fulton County
You will see these items alongside transfer and intangible taxes. Exact fees vary by provider and county schedule.
Seller side
- Broker commission
- Settlement or closing fee if split
- Deed transfer or recording costs if assigned to seller by contract
- Mortgage payoff and any reconveyance fees
- Prorated property taxes and HOA dues
Buyer side
- Lender fees, origination, and points if applicable
- Intangible recording tax on the new loan
- Recording fees for the security deed and related documents
- Title insurance for lender, and optional owner’s policy if chosen
- Appraisal, inspections, survey if required
- Prorated property taxes and any HOA transfer fees
Build your estimate with a simple worksheet
Create a one-page worksheet to bring clarity to your Buckhead closing. Use these fields and formulas, then plug in current Fulton County and lender numbers.
Inputs
- Purchase price
- Loan-to-value or loan principal
- Example deed transfer rate or fee schedule
- Intangible tax rate or example formula
- County recording flat fees and per-page fees
- Title insurance premiums
- Lender fees and other buyer costs
- Realtor commission and other seller costs
Calculations
- Deed transfer estimate = purchase price multiplied by the chosen rate
- Intangible tax estimate = loan principal multiplied by the tax rate
- Subtotals for buyer and seller closing costs
- Grand total closing costs for the transaction
Notes to include
- All rates are illustrative. Verify Fulton County fees and Georgia intangible tax rules with your title company and the county clerk.
- Ask your title company for a preliminary closing statement early. It will show transfer and intangible tax estimates so you can refine your budget.
Smart steps to avoid surprises
- Confirm the current Fulton County recording fee schedule before you finalize numbers.
- Ask for a preliminary closing statement as soon as you are under contract.
- Check your contract for who pays deed transfer costs. The clause should state this clearly.
- If you are financing, discuss the intangible tax line with your lender and title company so it is included in your loan estimate.
- For higher price points common in Buckhead, model a few loan-to-value scenarios so you see how intangible tax changes with your down payment.
Ready to run the numbers or talk strategy?
If you are planning a sale or purchase in Buckhead or nearby intown neighborhoods, you deserve clear guidance and a streamlined closing. For a tailored estimate and a game plan that fits your goals, connect with Shanna Bradley.
FAQs
What is Georgia’s intangible recording tax and when does it apply in Fulton County?
- It is a state tax on the principal amount of a new mortgage that is recorded with a security deed, typically paid by the borrower at closing when a new loan is recorded.
Who usually pays the deed transfer tax in Atlanta-area contracts?
- Local custom often assigns deed transfer costs to the seller, but it is negotiable and should be confirmed in your purchase and sale agreement and with your closing attorney.
Do cash buyers in Buckhead pay the intangible tax?
- No, cash buyers do not have a new mortgage, so the intangible tax does not apply, although standard deed recording fees still do.
How can I estimate the intangible tax on my Buckhead purchase?
- A common example formula is about 0.3 percent of the new loan amount, but you should confirm the current rule with your title company or closing attorney.
Where can I confirm current Fulton County recording and deed fees?
- Check with the Fulton County Clerk of Superior Court, your title company, or your closing attorney for the latest fee schedule before you rely on any estimate.
What changes if I refinance or assume a loan in Georgia?
- Refinances with the same lender and certain loan assumptions can have special rules or credits, so ask your title or closing counsel whether intangible tax is due in your situation.
