In most states you pay a "transfer" tax when you sell your home. It actuqally is a sales tax. There are lots of exceptions to this. In some states it is waived if you are a first time buyer. In some you only pay on the profit the seller makes on the sale. In some you get to deduct the mortgage payoff amount. In some if the transfer is between relatives you don't pay it.
So, generally speaking, the calculations are made based on the sale price minus your exemptions.
For example, you sell a house for $100,000 and you have a $50,000 mortgage. The base rate for the transfer tax would be $50,000.
Now, the fun part is that not only does the rate vary by state but can vary within any given state by area. Some states tax based on a per $1000 basis and some tax on a per $500 basis.
Their objective is to close the barn door *before* the cow gets out. Georgia, btw, has a transfer tax and the seller pays it. You are in Georgia, right? I can't keep everyone straight <g>
Lynda
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