Real estate tip: Home seller may pay transfer tax

Sales taxes are not charged on home sales but transfer taxes are levied in many states. A transfer tax is an assessment by state or local authorities at the time a piece of property changes hands. The seller usually pays this tax. Transfer tax rates average 50 cents per $500; on a $150,000 home, the tax would be $150.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.