Georgia Real Estate Transactional Taxes
The State of Georgia has three basic taxes related to real estate transactions. They are:
Transfer Tax
This tax is based on the value of consideration being conveyed (the sales price).
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This tax is based on the value of consideration being conveyed (the sales price).
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Intangibles Tax
This tax is assessed on the amount financed, if the underlying instrument is a long-term note.
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This tax is assessed on the amount financed, if the underlying instrument is a long-term note.
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Residential Loan Tax
This is a small tax applicable where a residential lender is involved in the transaction.
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This is a small tax applicable where a residential lender is involved in the transaction.
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State of Georgia Transfer Tax
The State of Georgia Transfer Tax is imposed at the rate of $1.00 per thousand (plus $0.10 / hundred) based upon the value of the property conveyed.
Example: A property selling for $550,000.00 would incur a $550.00 State of Georgia Transfer Tax.
• The tax applies to realty that is sold, granted, assigned, transferred or conveyed.
• Conveyancing instruments include: Warranty Deed, Quitclaim Deed, Administrator's Deed, Executor's Deed, Deed of Gift, Special Warranty Deed, Limited Warranty Deed.
• Although Georgia is a Title Theory state, mortgage type instruments are not subject to transfer tax. These include: Deed to Secure Debt / Security Deed.
Example: A property selling for $550,000.00 would incur a $550.00 State of Georgia Transfer Tax.
• The tax applies to realty that is sold, granted, assigned, transferred or conveyed.
• Conveyancing instruments include: Warranty Deed, Quitclaim Deed, Administrator's Deed, Executor's Deed, Deed of Gift, Special Warranty Deed, Limited Warranty Deed.
• Although Georgia is a Title Theory state, mortgage type instruments are not subject to transfer tax. These include: Deed to Secure Debt / Security Deed.
Transfer Tax Exemptions
Georgia law contains many exemptions to the State Transfer Tax, including transactions involving the following:
- • Agent to Principal
- Nominee to Principal
- Cemetery Deed
- Chapter 11 Bankruptcy
- Company to Individual Transfer
- Corporate Merger
- Corporation to Corporation
- Deed Confirming Title Already Vested
- Deed in Lieu of Foreclosure
- Deed of Correction
- Deed of Gift
- Divorce Based Transfer
- Estate Deed
- First Transferee After Foreclosure
- Government/NonProfit Public Corporation
- Individual to Company Transfer
- Joint Tenant Division
- Partition Deed
- Property Returned after FiFa
- Public Road Acquisition
- Sheriff's Deed of Redemption
- Year's Support Order
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+ GA Code § 48-6-1 – Georgia Transfer Tax
- See GA. Code 48-6-1 Tax rate for real estate conveyance instruments (Georgia Code (2013 Edition))
There is imposed a tax at the rate of $1.00 for the first $1,000.00 or fractional part of $1,000.00 and at the rate of 10 cent(s) for each additional $100.00 or fractional part of $100.00 on each deed, instrument, or other writing by which any lands, tenements, or other realty sold is granted, assigned, transferred, or otherwise conveyed to or vested in the purchaser or purchasers, or any other person or persons by his or their direction, when the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance existing prior to the sale and not removed by the sale) exceeds $100.00. -
+ GA Code § 48-6-1 – Payment of Tax Prerequisite to Recordation
- GA. Code 48-6-4 Payment of tax prerequisite to recordation of conveyance instrument; disclosure of value form in electronic format; tax payment certificate (Georgia Code (2013 Edition))
(a) It is the intent of the General Assembly that the tax imposed by this article be paid to the clerk of the superior court or his or her deputy prior to and as a prerequisite to the filing for record of any deed, instrument, or other writing described in Code Section 48-6-1.
(b) No deed, instrument, or other writing described in Code Section 48-6-1 shall be filed for record or recorded in the office of the clerk of the superior court or filed for record or recorded in or on any other official record of this state or of any county until the tax imposed by this article has been paid; provided, however, that any such deed, instrument, or other writing filed or recorded which would otherwise constitute constructive notice shall constitute such notice whether or not such tax was in fact paid.
(c) The amount of tax to be paid on a deed, instrument, or other writing shall be determined on the basis of written disclosure of the consideration or value of the interest in the property granted, assigned, transferred, or otherwise conveyed. The disclosure shall be made on a form or in electronic format prescribed by the commissioner and provided by the clerk of the superior court. By the fifteenth day of the month following the month the deed, instrument, or other writing is recorded, a physical or electronic copy of each disclosure shall be forwarded or made available electronically to the state auditor and to the tax commissioner and the board of tax assessors in the county where the deed, instrument, or other writing is recorded.
(d) Upon payment of the correct amount of tax, the clerk of the superior court or his or her deputy shall enter upon or attach to the deed, instrument, or other writing a certification of the fact that the tax as imposed by this article has been paid, the date, and the amount of the tax. The certification shall be signed by the clerk or deputy clerk receiving the tax. The certification may also be attested to electronically by the clerk or deputy clerk in such manner as may be prescribed by the commissioner.
(e) The certificate entered upon or attached physically or electronically to the deed, instrument, or other writing shall be recorded with the deed, instrument, or other writing and shall be in the physical or electronic form required by the commissioner. In each case, however, the certificate shall bear the signature of the clerk or his or her deputy. The certificate may be relied upon by subsequent purchasers or lenders as evidence that the proper tax has been paid. In the event any deed, instrument, or other writing upon which tax is imposed by this article is required to be recorded in more than one county, the required tax shall be prorated among all applicable counties and the amount paid to the clerk or his or her deputy of the county in which the deed, instrument, or other writing is recorded shall be that proportion of the total tax due calculated by applying the ratio of the value of the real property in such county as it bears to the total value of the real properties in all counties described in the deed, instrument, or other writing to the total tax due. Such proportions shall be calculated pursuant to the most recently determined fair market valuations of the property as determined by the county board of tax assessors. All such values shall be disclosed on the face of the deed, instrument, or other writing or, alternatively, may be submitted in the form of an affidavit by the holder presenting the deed, instrument, or other writing for recording. The original or a duplicate original executed copy or counterpart of such deed, instrument, or other writing shall be presented for recording in all counties in which the real property is located, and the clerk or the clerk's deputy of each county may rely upon the sworn original or a duplicate original certification of values in determining the amount of tax due and payable in that county and collect such portion of the tax imposed by Code Section 48-6-1 and enter the same upon the deed, instrument, or other writing.
State of Georgia Intangibles Tax
The State of Georgia Intangibles Tax is imposed at $1.50 per five hundred ($3.00 per thousand) based upon the amount of loan.
Example: A property financed for $550,000.00 would incur a $1,650.00 State of Georgia Intangibles Tax.
• The tax must be paid within 90 days from the date of instrument.
• See below for Penalty information.
• The tax is applicable to long-term notes.
Example: A property financed for $550,000.00 would incur a $1,650.00 State of Georgia Intangibles Tax.
• The tax must be paid within 90 days from the date of instrument.
• See below for Penalty information.
• The tax is applicable to long-term notes.
Intangibles Tax Exemptions
Georgia law contains many exemptions to the State Intangibles Tax, including transactions involving the following:
Short Term Note Exemption
Short-term notes secured by real estate are exempt from the State of Georgia Intangibles Tax. Under Georgia law, a "Short-Term Note" is a note having a maturity of three years or less.
Short-term notes secured by real estate are exempt from the State of Georgia Intangibles Tax. Under Georgia law, a "Short-Term Note" is a note having a maturity of three years or less.
Refinance Exemption
The Georgia intangibles tax is exempt on refinance transactions up to the amount of the unpaid balance on the original note. The borrower and lender must remain unchanged from the original loan.
The Georgia intangibles tax is exempt on refinance transactions up to the amount of the unpaid balance on the original note. The borrower and lender must remain unchanged from the original loan.
Non Note Exemption
A security instrument is exempt from the State of Georgia Intangibles Tax when the instrument does not secure a note. Common examples includes guarantees, performance bonds, performance agreements, indemnity agreements, divorce decrees and letters of credit.
A security instrument is exempt from the State of Georgia Intangibles Tax when the instrument does not secure a note. Common examples includes guarantees, performance bonds, performance agreements, indemnity agreements, divorce decrees and letters of credit.
Credit Union Exemption
A security instrument is exempt from the State of Georgia Intangibles Tax when the lender is a federally or Georgia charted credit union or church.
A security instrument is exempt from the State of Georgia Intangibles Tax when the lender is a federally or Georgia charted credit union or church.
Other Exemptions
Other exemptions from the intangibles tax include the following situations:
Other exemptions from the intangibles tax include the following situations:
- Where the United States is a party, including various other government entities.
- Substitutions of real estates for which the tax has already been paid.
- Transfers and assignments where the intangibles tax has already been paid.
*Note— Georgia Code provisions for exemptions are provided below.
Intangibles Tax Penalties
The State of Georgia Intangibles Tax must be paid within 90 days from the date of the instrument. The failure to pay the Georgia Intangibles Tax bars foreclosure of the property.
Availability of Cure:
The bar may be lifted under certain conditions upon payment of the tax plus interest plus penalties in the amount of 50% of the tax due.
Availability of Cure:
The bar may be lifted under certain conditions upon payment of the tax plus interest plus penalties in the amount of 50% of the tax due.
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+ GA Code § 48-6-61 – Georgia Intangibles Tax
- GA. Code 48-6-61 Taxation of security instruments for long-term notes secured by real estate (Georgia Code (2013 Edition))
Every holder of a long-term note secured by real estate shall, within 90 days from the date of the instrument executed to secure the note, record the security instrument in the county in which is located the real estate conveyed or encumbered or upon which a lien is created to secure the note and shall present, prior to presenting the instrument to the clerk of superior court for recording, the security instrument to the collecting officer of the county in which the real estate is located. The collecting officer shall determine from the face of the security instrument the date of execution of the instrument, the maturity date of the note, and the principal amount of the note. There is imposed on each instrument an intangible recording tax at the rate of $1.50 for each $500.00 or fraction thereof of the face amount of the note secured by the recording of the security instrument. The collecting officer shall collect the tax due on the security instrument from the holder of the instrument; provided, however, the holder may pass on the amount of such tax to the borrower or mortgagor but the amount of such tax passed to the borrower or mortgagor shall not be considered or treated as part of any finance charge imposed by the holder in connection with the loan transaction. If the security instrument reflects an amount greater than the principal amount of the note and, at the time the security instrument is presented for recording, the holder of the note also presents for recording with the security instrument said holder's sworn statement itemizing the principal amount of the note and the other charges included within the amount shown on the face of the security instrument, the collecting officer shall determine the principal amount of the note from the sworn statement. The maximum amount of any intangible recording tax payable as provided in this Code section with respect to any single note shall be $25,000.00. -
+ GA Code § 48-6-60 – Short-term Note Exemption
- GA. Code 48-6-60 Definitions (Georgia Code (2013 Edition))
(4) "Short-term note secured by real estate" means any note which would be a long-term note secured by real estate were it not for the fact that the whole of the principal of the note falls due within three years from the date of the note or from the date of any instrument executed to secure the note. -
+ GA Dept Rev § 560-11-8-.05 – Refinancing Exemption
- Rules and Regulations of the State of Georgia, Department of Revenue
560-11-8-.05 Refinancing.
(1) Intangible recording tax is not required to be paid on that part of the face amount of a new instrument securing a long-term note secured by real estate which represents a refinancing by the original lender and original borrower of unpaid principal of an existing instrument securing a long-term note secured by real estate still owned by the original lender, if the intangible recording tax was paid on the original instrument or the original holder of the instrument was exempt.
(a) The new instrument must contain a statement of what part of the face amount represents a refinancing of unpaid principal. This information must be disclosed on the face of the instrument or in the alternative may be submitted in the form of an affidavit indicating which part of the face amount represents a refinancing of unpaid principal. (2) Where two or more instruments securing long-term notes, secured by separate deeds to secure debt and held by the original borrower and the original lender, are consolidated, with no new money advanced, into a single instrument securing a long-term note with a single deed to secure debt, intangible recording tax is due, up to the statutory maximum, on that portion of the indebtedness secured by the new instrument, if any, that does not represent unpaid principal on the consolidated notes. (3) Where instruments securing long-term and short-term notes, secured by separate deeds to secure debt and held by the original borrower and the original lender, are consolidated, with no new money advanced, into a single instrument securing a long-term note with a single deed to secure debt, intangible recording tax is due, up to the statutory maximum, on that portion of the indebtedness secured by the new instrument, if any, that does not represent unpaid principal on the long-term note or notes.
Authority O.C.G.A. Secs. 48-2-20, 48-6-61--48-6-69. History. Original Rule entitled "Refinancing" adopted. F. Jun. 17, 1996; eff. Jul. 7, 1996. -
+ GA Dept Rev § 560-11-8-.14 – Non Note Exemption
- Rules and Regulations of the State of Georgia, Department of Revenue
560-11-8-.14 Exemptions.
Any mortgage, deed to secure debt, purchase money deed to secure debt, bond for title or any other form of security instrument is not subject to intangible recording tax where any of the following applies: ...
(d) Where the instrument does not secure a note, (e.g., guaranty agreement; bail bond; performance agreement; bond issue; indemnity agreement; divorce decree; letter of credit). ...
Authority O.C.G.A. Secs. 48-5-41(a)(1)(A), 48-6-22, 48-6-60, 48-6-65(a), 48-6-65(a)(2), 48-6-65(b)(1). History. Original Rule entitled "Exemptions" adopted. F. Jun. 17, 1996; eff. Jul. 7, 1996. -
+ GA Dept Rev § 560-11-8-.14 – Credit Union Exemption
- Rules and Regulations of the State of Georgia, Department of Revenue
560-11-8-.14 Exemptions.
Any mortgage, deed to secure debt, purchase money deed to secure debt, bond for title or any other form of security instrument is not subject to intangible recording tax where any of the following applies: ...
(b) Where any of the following is Grantee: a federal credit union, a state of Georgia chartered credit union, or a church. ...
Authority O.C.G.A. Secs. 48-5-41(a)(1)(A), 48-6-22, 48-6-60, 48-6-65(a), 48-6-65(a)(2), 48-6-65(b)(1). History. Original Rule entitled "Exemptions" adopted. F. Jun. 17, 1996; eff. Jul. 7, 1996. -
+ GA Dept Rev § 560-11-8-.14 – Other Exemptions
- Rules and Regulations of the State of Georgia, Department of Revenue
Rule 560-11-8-.14 Exemptions.
Any mortgage, deed to secure debt, purchase money deed to secure debt, bond for title or any other form of security instrument is not subject to intangible recording tax where any of the following applies: (a) Where any of the following is a party: The United States, the State of Georgia, any agency, board, commission, department or political subdivision of either the United States or this state, any public authority, any non-profit public corporation, or any other publicly held entity sponsored by the government of the United States or this state.
...
(c) Where the instrument is given as additional security, to correct a previously recorded instrument, or to substitute real estate; provided the body of the new instrument identifies the existing instrument and specifically states the purpose of the new instrument. ... (e) In the case of a transfer or assignment, where the original note or the holder of the original note was exempt. ...
Authority O.C.G.A. Secs. 48-5-41(a)(1)(A), 48-6-22, 48-6-60, 48-6-65(a), 48-6-65(a)(2), 48-6-65(b)(1). History. Original Rule entitled "Exemptions" adopted. F. Jun. 17, 1996; eff. Jul. 7, 1996. -
+ GA Code § 48-6-77 – Penalties for Failure to Pay
- GA. Code 48-6-77 Effect of failure to pay tax (Georgia Code (2013 Edition))
(a) Failure to pay the tax levied by this article shall constitute a bar to the collection by any action, foreclosure, the exercise of any power of sale, or otherwise of the indebtedness secured by any instrument required by this article to be recorded, whether the instrument is held by an original party to the instrument or by a transferee. However, failure to pay the tax levied by this article shall not affect or discharge the indebtedness and other obligations secured by such instrument or the debtor's liability on account thereof and, subject to the bar, such instrument shall continue to secure the indebtedness and other obligations secured thereby and shall continue to encumber the collateral described therein. The bar may be removed by the payment of the required tax, plus interest at the rate specified in Code Section 48-2-40 from the time the tax was due, plus a penalty of 50 percent of the amount of the tax, after which the process to collect the indebtedness, including foreclosure, may proceed as if no bar ever existed. However, if an instrument required to be recorded fails to reflect on its face that the tax levied by this article is due and after a foreclosure has taken place it is discovered that the instrument securing the indebtedness is in fact subject to the tax, any deed given pursuant to the foreclosure or in lieu of foreclosure shall be imperfected but may be perfected by the payment of the required tax, plus interest at the rate specified in Code Section 48-2-40 from the time the tax was due plus a penalty of 50 percent of the amount of the tax. Once the tax, interest, and penalty as required in this subsection have been paid, the perfection of the deed will revert back to the date of the deed, and the deed shall retain its priority over any and all intervening liens or conveyances except those conveyances and liens made or created by the grantee, its successors, and assigns named in the foreclosure deed or deed in lieu of foreclosure. These provisions shall have no effect on any instrument subject to the tax on which the statute of limitations has expired.
(b) The failure to pay the tax shall not constitute a bar to the collection of the indebtedness as provided in subsection (a) of this Code section when the commissioner has determined that the tax is not payable.
(c) The commissioner may waive the penalty provided for in subsection (a) of this Code section if he determines that the failure to pay the tax was through ignorance of the law or inadvertence and that the failure did not occur out of bad faith.
(d) This Code section shall not apply to instruments acquired at a time when the holder of the instrument was otherwise exempt from the payment of the tax imposed by this article.
Georgia Residential Mortgage Fee
The State of Georgia imposes a tax of $10.00 for any loan subject to the Georgia Residential Mortgage Act. The fee is paid to the Georgia Department of Banking and Finance.
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+ GA Code § 7-1-1011 – Mortgage Loan Fee
- GA. Code 7-1-1011 Annual fees; "collecting agent" defined; other fees (Georgia Code (2013 Edition))(2)
There shall be imposed on the closing of every mortgage loan subject to regulation under this article which, as defined in Code Section 7-1-1000, includes all mortgage loans, whether or not closed by a mortgage broker or mortgage lender licensee or registrant, a fee of $10.00. The fee shall be paid by the borrower to the collecting agent at the time of closing of the mortgage loan transaction. The collecting agent shall remit the fee to the department at the time and in the manner specified by regulation of the department. Revenue collected by the department pursuant to this subsection shall be deposited in the general fund of the state.
Questions? Speak with a Real Estate Lawyer
CHRIS PAHL
Attorney at Law
945 E Paces Ferry Road
Resurgens Plaza
Atlanta, GA 20326
678.448.4148 Telephone
Open By Appointment Only
Monday through Friday 9am to 5:30pm
Saturday 9am to Noon
Attorney at Law
945 E Paces Ferry Road
Resurgens Plaza
Atlanta, GA 20326
678.448.4148 Telephone
Open By Appointment Only
Monday through Friday 9am to 5:30pm
Saturday 9am to Noon
+1(678)448-4148
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Buckhead • Atlanta Georgia 30326
Tel +1(678)448-4148
Open By Appointment Only
Monday through Friday 9am to 5:30pm
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Real Estate | Closing Lawyer | Land-Title Insurance
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