Real estate transfer taxes can add thousands of dollars to a home purchase. Fortunately, several states charge no transfer tax at all, saving buyers and sellers significant money at closing. Below are the states with no transfer tax, followed by all other states ranked from lowest to highest.
The following states charge a transfer tax on real estate transactions.
Transfer taxes (also called deed taxes, conveyance taxes, or documentary stamp taxes) are one-time fees charged by the state or county when real estate changes hands. They are typically calculated as a percentage of the sale price and may be split between buyer and seller or paid entirely by one party depending on local custom. On a $350,000 sale, a 2% transfer tax adds $7,000 to the transaction cost.
Several states have eliminated transfer taxes entirely, giving buyers and sellers a meaningful cost advantage at closing. In states with high transfer taxes, this fee can be one of the single largest closing costs. Unlike recurring costs like property taxes and insurance, transfer tax is a one-time expense — but it directly reduces the cash you have available for your down payment and moving costs.
If you are buying or selling in a high-transfer-tax state, factor this cost into your budget early. In some states, transfer taxes are negotiable between buyer and seller as part of the purchase agreement.
| Rank | State | Transfer Tax Rate | Closing % |
|---|---|---|---|
| #1 | Alabama | None | 1.4% |
| #2 | Alaska | None | 1.8% |
| #3 | Arizona | None | 1.6% |
| #4 | Idaho | None | 1.5% |
| #5 | Indiana | None | 1.1% |
| ... | |||
| #11 | New Mexico | None | 1.4% |
| #12 | North Dakota | None | 1.1% |
| #13 | Texas | None | 1.7% |
| #14 | Utah | None | 1.3% |
| #15 | Wyoming | None | 1.1% |
Several states charge no transfer tax, including Alabama, Alaska, Arizona, Idaho, Indiana. Buying in these states eliminates one of the largest potential closing costs.
A transfer tax (also called a deed tax, conveyance tax, or documentary stamp tax) is a one-time fee charged by the state or county when property ownership changes hands. It is typically calculated as a percentage of the sale price and paid at closing.
It varies by state and local custom. In some states the buyer pays, in others the seller pays, and in many states the cost is split. The responsibility can also be negotiated as part of the purchase agreement.
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