Which US states have no real estate transfer tax?
Several states impose no state-level real estate transfer tax: Texas, Alaska, Idaho, Indiana, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Utah, Wyoming, and Arizona. However, even in these states, county or municipal transfer fees and recording fees will still apply at closing.
Who pays transfer tax — buyer or seller?
It depends on the state and local custom. In most states, the seller pays the transfer tax. In Pennsylvania, the 1% state tax is split equally between buyer and seller. In New York, the seller typically pays the state transfer tax but the buyer pays the mansion tax on purchases over $1 million. Your purchase contract will specify the allocation.
A mansion tax is an additional transfer or excise tax on high-value real estate transactions. New York State imposes a 1% mansion tax on purchases over $1 million (paid by the buyer). New York City has a tiered mansion tax from 1% to 3.9% on purchases over $1 million. New Jersey imposes a 1% tax on commercial properties over $1 million. Los Angeles has a measure imposing 4% on properties over $5M and 5.5% over $10M.