Why transfer tax varies so much
The US has no federal transfer tax on property. Instead, each state sets its own rules — and the variation is enormous. Some states charge nothing. Others add 2-3% to your purchase price. On a $500,000 property, that’s the difference between $0 and $12,500 in tax alone.
If you’re comparing investment properties across state lines, transfer tax can meaningfully shift which deal is actually cheaper.
The full table
| State | Rate | Name | Notes |
|---|---|---|---|
| Texas | 0% | — | No transfer tax |
| Arizona | 0% | — | No transfer tax |
| California | 0.11% | Documentary Transfer Tax | City surcharges can add 0.5–1.5% (LA, SF) |
| Colorado | ~0.01% | Documentary Fee | Minimal state fee |
| Georgia | 0.1% | Real Estate Transfer Tax | $1 per $1,000 |
| Hawaii | 0.1–1.25% | Conveyance Tax | Progressive — higher on expensive properties |
| Illinois | 0.1% | Real Estate Transfer Tax | Chicago adds ~1.05% city tax |
| Ohio | 0.1% | Conveyance Fee | Counties may add up to $3 per $1,000 |
| North Carolina | 0.2% | Excise Tax | $1 per $500 |
| Nevada | 0.195% | Real Property Transfer Tax | Clark County (Las Vegas) adds additional fee |
| Tennessee | 0.37% | Transfer Tax | $0.37 per $100 |
| New Jersey | 0.4–1.0% | Realty Transfer Fee | 1% mansion tax above $1M |
| New York | 0.4% | Real Estate Transfer Tax | NYC adds additional taxes; mansion tax above $1M |
| Massachusetts | 0.456% | Deed Excise Tax | $2.28 per $500 |
| Maryland | 0.5% | Transfer & Recordation Tax | Counties add 0.5–1.0% on top |
| Florida | 0.7% | Documentary Stamp Tax | Miami-Dade charges 1.15% instead |
| Connecticut | 0.75–1.25% | Conveyance Tax | Higher rate above $800K |
| Pennsylvania | 1.0% | Realty Transfer Tax | Most localities add another 1% |
| Washington | 1.1–3.0% | Real Estate Excise Tax | Progressive — up to 3% above $3M |
| Delaware | 2.5% | Realty Transfer Tax | One of the highest in the US |
Zero-tax states
Texas and Arizona charge no state transfer tax at all. This makes them attractive for investors — your total acquisition cost is meaningfully lower. On a $400,000 property, you save $2,800 compared to Florida and $10,000 compared to Delaware.
Other low-tax states (Georgia, Illinois, Ohio, Colorado) charge 0.1% or less — effectively negligible.
Highest-tax states
Delaware at 2.5% is the outlier. On a $500,000 property, that’s $12,500 in transfer tax alone.
Washington is sneaky — the base rate of 1.1% looks moderate, but it’s progressive. Properties above $3 million pay 3% on the excess. Seattle-area investors buying expensive multifamily or commercial property can face substantial transfer taxes.
Pennsylvania charges 1% state, but most counties and municipalities add another 1%, bringing the effective rate to ~2% in practice.
What the table doesn’t show
Local surcharges. Several states allow cities and counties to add their own transfer taxes on top:
- Chicago: adds ~1.05% on top of Illinois’ 0.1% state rate
- New York City: adds 1% (residential) or 2.625% (commercial) on top of the 0.4% state rate
- San Francisco: adds up to 2.25% on top of California’s 0.11%
- Miami-Dade: charges 1.15% instead of Florida’s standard 0.7%
These local taxes are often larger than the state tax. If you’re investing in a major city, research the local rate specifically.
Who pays. In most states, the seller pays transfer tax — but in some states (or by local custom), the buyer pays. In a few states, it’s split. Our calculator models the tax regardless of who pays, since it affects total transaction costs either way.
How this affects your ROI
Transfer tax is a one-time cost that directly increases your total cash invested. A higher total investment means lower cash-on-cash returns and a longer payback period — even if the property’s rental income is identical.
Example: Two identical $400,000 properties generating $2,000/month rent.
- Texas (0% transfer tax): Total invested ~$88,000 (deposit + closing costs). Cash-on-cash: ~6.8%
- Delaware (2.5% transfer tax): Total invested ~$98,000. Cash-on-cash: ~6.1%
Same property, same rent — but the Delaware investor needs 12% more capital and earns a lower return.
Calculate your total costs
Our free calculator models transfer tax for 20 US states — select your state from the Region dropdown to see the accurate rate. It also calculates closing costs, ongoing expenses, mortgage payments, and a full 10-year projection.