Real Estate Sales Tax??

By
Real Estate Agent with Keller Williams Realty - Topsfield, MA 92593-B

 

 

Here in Massachusetts and other states we have, in essence, a sales tax on the sale of a home. The tax is called Tax Stamps. Actually, they are state excise tax stamps.

Most home sellers are not aware this tax even exists. Tax Stamps are probably the second biggest expense for the homeowner right behind the commission. When it comes time to complete the listing paperwork I make sure my client understands tax stamps and the cost to them. 

In Massachusetts, the general rule of thumb is, tax stamps cost $4.56 per $1000 of the sale price. If the sale price is $300,000 then your tax stamp cost is $4.56 x 300 or $1368. The number is listed on Line 1203 of the HUD-1. The deed cannot be recorded and the sale cannot be closed until the Registry of Deeds has confirmation the tax stamps have been paid. Please note that Barnstable County charges $5.70 per $1000 while Dukes & Nantucket County charge an additional 2% of the sales price which goes to the local land bank commission.

Many folks in Massachusetts, in an attempt to escape Massachusetts taxation by moving to New Hampshire, have been taken by surprise. In NH the "Real Estate Transfer Tax" is $15 per $1000 of sale price and the Buyer & Seller split the cost of that tax. So $7.50 x 300 = $2250 both buyer and seller pay.

I've often wondered when other people's money runs out what will the government do?

 

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (25)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

We have a stamp tax as well, Doug. But it's a lot lower than what you guys are paying in MA.

Jul 17, 2015 08:28 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Doug.  If you want to know what is going to happen look at Greece.  That is our future.

Jul 17, 2015 08:37 PM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Conrad Allen 

You got that right. A Nanny state will not work 

Jul 17, 2015 09:19 PM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Nina Hollander 

I figured many states if not all have tax stamps. Enjoy your weekend

Jul 17, 2015 09:20 PM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Lou Ludwig 

And a home seller is usually uninformed before speaking with their Realtor®. Have a great weekend

Jul 17, 2015 09:21 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning to you, Doug... I would agree. It's hard to imagine the states not getting their pound of flesh from us! I just don't think that all the states call them stamp taxes.

Jul 17, 2015 11:00 PM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Nina Hollander 

People are always saying we should pay more tax than what we pay. When is enough, enough? =:o)

Jul 18, 2015 03:14 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Unfortunately, Doug, with the political leadership we have today enough is never enough.

Jul 18, 2015 04:04 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Nina Hollander 

All I can say to that is, Amen, sister

Jul 18, 2015 09:06 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

The government never has enough.  In Florida our stamps tax is $7 per $1000 on transfers and $3.5 per $1000 on loans.  Very expensive. 

Jul 19, 2015 12:24 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Rob Arnold 

So FL makes up for no state income tax. I agree with you

Jul 19, 2015 11:34 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Jursten , this is spam you have sent. Best wishes

Aug 13, 2015 04:58 AM
Bill Lauler
Chase Realty LLC - McLean, VA
Associate Broker,CIPS,CRB,SRES,GRI

Good Morning Doug, We have two sets of taxes in Virginia.We have what you talked about and we now have and additional tax called "Noise Abatement for traffic" which is a sad joke at 3.5% of the sales amount to the seller. No one really knows where this tax goes because  we still have the worst traffic in the nation from 5am to 930 am and from 3pm to 7pm on a daily basis.

Sep 02, 2015 10:25 PM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Bill Lauler 

Thanks for stopping by. "Noise Abatement"? Are they supposed to find ways to decrease the noise? In NH they have a "View Tax" 

Sep 02, 2015 10:32 PM
Bill Lauler
Chase Realty LLC - McLean, VA
Associate Broker,CIPS,CRB,SRES,GRI

The Common Wealth Of Virginia put up concrete walls around our now 12 lane beltway and every year compliments of the snow and ice and the salt and sand used on it ..they are eroded and thus they do it again. I believe it is just another scam tax for the politicians and their buddies to make a buck on the public.

Sep 03, 2015 03:19 AM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Bill Lauler 

You just never know about what will come from a politicians bag of tricks...lol

Sep 03, 2015 10:21 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Yes, like Rob said, in Florida we have what is called Documentary Stamp on the Deed and it is .70c of $100 value, so it is $7 per $1,000.

And he is also right about the tax on the new money.

Sep 27, 2015 03:14 PM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Jon Zolsky, Daytona Beach, FL 

Seems government everywhere wants to dip into all our wallets at every chance

Sep 27, 2015 07:51 PM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Doug, there is so many forms of tax that many in the middle class cannot get ahead or even keep up. I am hopefuly that Trump and the Republicans will give us a breather!

Aug 08, 2017 02:59 PM
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I am on the same page as you Mike Frazier 

There are taxes on everything

Aug 08, 2017 03:39 PM