How do you calculate transfer tax on a home sale?
Transfer tax = sale price × the local rate, which ranges from 0% (Texas, and most of the Midwest) to over 2% when state, county, and city layers stack. On a $500,000 sale: $0 in Austin, about $750 in Colorado (0.01% state + local), and $7,500+ in Philadelphia.
Transfer tax on a $500,000 sale in different places (2025–2026)
| Location | Combined rate | Tax |
|---|---|---|
| Texas | 0% | $0 |
| Florida | 0.70% | $3,500 (doc stamps on deed) |
| New York State | 0.4% + NYC 1–1.425% | ≈ $7,125 in NYC |
| Philadelphia, PA | ≈ 4.3% total, split | ≈ $10,750 per side |
| Los Angeles (> $5.3M) | ULA 4–5.5% + base | Mansion tax tiers |
How to read this table
- Los Angeles (> $5.3M) sits at the top of the table (ULA 4–5.5% + base) — mansion tax tiers. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Texas anchors the bottom (0%) — $0. Treat this as the conservative case you should still be profitable at.
- Most rows are ranges, not single figures. The low end usually reflects a weaker month, a softer audience geography, or an unoptimised setup; the high end reflects a well-run, well-targeted operation of the same size.
- With 5 reference points in the "transfer tax on a $500,000 sale in different places (2025–2026)" table, the fastest way to use this page is to find the closest row, take its combined rate, then stress-test it ±30% before you build a plan on it.
Context
Three traps: rates stack (state + county + city), tiers kick in at thresholds (LA's Measure ULA jumps at $5.3M and $10.6M — a $1 price difference can cost tens of thousands), and who pays is local custom (seller in most states, split in Pennsylvania, buyer in a few). Refinances usually avoid deed transfer tax but may owe a mortgage-recording tax — New York's is about 1.8–1.925% of the loan in NYC.
What moves this number
Financing terms
Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.
True operating expense ratio
Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.
Vacancy and turnover
One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.
Local regulation
Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.
Methodology
Rates from state statutes and county/city schedules current as of 2025–2026; LA tiers per Measure ULA as adjusted July 2025. Local pages on this site carry county-level detail.
Assumptions and caveats
- Returns exclude appreciation and principal paydown unless a row states otherwise.
- Local tax, insurance and regulation can move these figures by several points in either direction.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How do you calculate transfer tax on a home sale?
Transfer tax = sale price × the local rate, which ranges from 0% (Texas, and most of the Midwest) to over 2% when state, county, and city layers stack. On a $500,000 sale: $0 in Austin, about $750 in Colorado (0.01% state + local), and $7,500+ in Philadelphia.
Which option pays the most in the transfer tax on a $500,000 sale in different places (2025–2026) table?
Los Angeles (> $5.3M), at ULA 4–5.5% + base (Mansion tax tiers). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Texas at 0% ($0). Plan your costs so the low end still works, then treat anything above it as upside.
Where do these numbers come from?
Rates from state statutes and county/city schedules current as of 2025–2026; LA tiers per Measure ULA as adjusted July 2025. Local pages on this site carry county-level detail.
How can I estimate my own number instead of using a benchmark?
Use the Closing Costs Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
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Last updated 2026-10-01.