Homebuyer lesson · Georgia
Georgia's intangible tax and transfer tax, explained for first-time buyers
How Georgia's intangible recording tax and real estate transfer tax are figured, who pays each one, worked numbers on a $250,000 FHA purchase, and where down payment help fits.
Two taxes with confusing names
When people see "intangible tax" on a Georgia Loan Estimate for the first time, they often assume it's a mistake. It isn't. Georgia is one of the states that taxes the recording of a long-term loan secured by real estate, and it also taxes the deed that transfers the home. Both are paid to the county so the documents can be recorded, and both show up on your closing papers.
They're not huge compared to your down payment. They're still real money, and they're easy to calculate once you know the formulas, so let's take them one at a time.
The intangible recording tax: tied to your loan
Per the Georgia Department of Revenue, the rate is $1.50 for each $500, or fractional part of $500, of the note's face amount. That works out to $3 per $1,000 borrowed, with any partial $500 rounded up. The maximum on any single note is $25,000, which no first-time buyer in a Georgia Dream price range will come near.
The Clerk of the Superior Court collects it in most counties. In a list of smaller counties (50,000 people or fewer), the tax commissioner or tax collector handles it instead. Either way, your closing attorney pays it out of the closing funds and records your security deed.
A detail that surprises FHA buyers: the tax is figured on the face amount of the note. If you finance FHA's upfront mortgage insurance premium (1.75% of the base loan), the note is bigger than the base loan, and the tax is a little higher.
Working out the intangible tax
| Note amount (examples) | Number of $500 units (rounded up) | Intangible tax |
|---|---|---|
| $180,000 | 360 | $540.00 |
| $245,472 | 491 | $736.50 |
| $310,000 | 620 | $930.00 |
The Department of Revenue tells taxpayers to bring questions about specific exemptions to the local tax officials in the county where the home sits. If you're wondering whether your Georgia Dream second mortgage adds its own line, ask your lender to point to it on the Loan Estimate rather than guessing.
The transfer tax: tied to the price
The real estate transfer tax is charged on the deed. The DOR sets it at $1 for the first $1,000 or fractional part, plus 10 cents for each additional $100 or fractional part, based on the sale price. In round terms, that's about $1 per $1,000 of price.
Under the law, the seller is liable for it. The DOR also notes that sales contracts often have the buyer cover it, so read your contract or ask your agent which way yours is written. The tax is paid to the clerk of superior court before the deed can be recorded, and it's reported on a form called the PT-61, which closing attorneys usually file electronically through the Georgia Superior Court Clerks' Cooperative Authority.
A sample purchase, start to finish
Here's an example only, not a quote: a $250,000 home bought with an FHA loan and 3.5% down.
| Item | How it's figured | Amount |
|---|---|---|
| Down payment | 3.5% of $250,000 | $8,750 |
| Base loan | $250,000 minus $8,750 | $241,250 |
| Note with financed upfront premium | $241,250 plus 1.75% | about $245,472 |
| Intangible recording tax | 491 units of $500 at $1.50 | $736.50 |
| Transfer tax (seller's by law) | $1 plus 2,490 units of $100 at 10 cents | $250.00 |
So on this purchase the two state taxes together come to just under $1,000, and if the seller pays the transfer tax as the law sets out, the buyer's share is the $736.50 intangible tax.
The rest of your closing costs
The state taxes are only a slice. Your Loan Estimate will also list items like these:
- Closing attorney fee. Georgia closings are handled by attorneys, a topic covered in our attorney closing guide.
- Title search and title insurance. The lender's policy is usually required; an owner's policy protects you.
- Lender and appraisal fees. Georgia Dream lenders may not charge discount points or uncommon fees, per DCA.
- Recording fees for the deed and security deed.
- Prepaids and escrow. Homeowners insurance, a few months of property tax and interest to the end of the month. Your homestead filing affects the tax estimate.
Where assistance and seller help fit
Georgia Dream's assistance can pay the down payment, allowable closing costs, prepaids and principal reduction. It can't pay for rate buydowns or repairs. You put in at least $1,000 of your own or gifted money, and that can include earnest money or fees you paid before closing.
Sellers can help too. Your lender confirms how much your loan type allows, and VA caps seller concessions at 4% of the home's reasonable value. A common approach is to ask the seller to cover part of your closing costs so the assistance stretches further. Your attorney then lists every credit on the Closing Disclosure.
Questions to ask before you sign the contract
- Who pays the transfer tax under this contract, the seller or me?
- Is the intangible tax on my Loan Estimate figured on the full note, including any financed premium?
- Which other closing costs does my assistance program allow?
- Is there room to ask the seller for a closing cost credit?
Small taxes add up when you're counting every dollar. Once you have a sense of the numbers, check your eligibility to see which assistance can cover them.
Questions we hear a lot
What is the intangible tax on a Georgia mortgage?
It's a state tax on recording a long-term loan secured by real estate: $1.50 for each $500 of the note, rounded up, with a $25,000 cap. On a $245,000 note it's about $735.
Who pays the Georgia transfer tax?
By law the seller is liable for it. The Department of Revenue notes that contracts often shift it to the buyer, so check yours before you sign.
How much is the Georgia transfer tax?
$1 for the first $1,000 of the price, plus 10 cents for each additional $100. On a $250,000 home that's $250.
Can down payment assistance pay these taxes?
Georgia Dream assistance can cover allowable closing costs, so in many cases yes. Your lender confirms which lines it can pay.
