Buying or selling in Atlanta? Two Georgia taxes often appear on your closing paperwork: the real estate transfer tax and the intangible recording tax. Understanding when they apply, who typically pays, and how they affect your bottom line can keep your deal smooth and surprise‑free.
Why transfer and intangible taxes matter in Atlanta closings
These taxes are standard in many Georgia transactions. They impact cash to close for buyers and net proceeds for sellers. Knowing what triggers them lets you budget early, spot errors on your Closing Disclosure, and negotiate credits if needed. Your closing attorney calculates and remits both taxes during recording using state forms and county processes as outlined by the Georgia Department of Revenue and its guidance on intangible tax.
Georgia transfer tax vs. intangible tax explained
The two taxes apply to different documents and at different points in the process.
When each tax applies
- Real estate transfer tax: Typically applies when a deed is recorded after a purchase and sale. It is based on the property’s sale price and is paid at recording with the deed using the state’s PT‑61 transfer declaration per DOR guidance.
- Intangible recording tax: Applies when a lender records a security instrument to secure a long‑term note. It is based on the loan’s principal that is being secured and is paid at recording with the security instrument per DOR guidance.
- Recent update: For loans made on or after July 1, 2025, a note must extend beyond 62 months to be considered “long‑term” for intangible tax purposes. Shorter‑term loans at 62 months or less are generally exempt from the intangible tax per HB 586.
Typical scenarios:
- Cash purchase: Expect the transfer tax; no intangible tax since there is no recorded mortgage.
- Financed purchase: Expect the transfer tax and, if the mortgage is long‑term, the intangible tax when the security instrument is recorded see DOR overview.
- Refinance: No transfer tax (no deed conveying a sale), but the new long‑term loan’s security instrument can trigger the intangible tax.
- Assumptions or creative structures: Applicability can vary. Your closing attorney will confirm which tax applies based on the exact documents.
Where they appear on your Closing Disclosure
- Transfer tax: Often listed in the “Other” section and typically placed on the seller side unless the contract assigns it to the buyer. Your attorney will tie this to the PT‑61 filing required statewide.
- Intangible tax: Usually listed in the loan‑related section with recording charges. While the county collects it from the lender at recording, lenders often pass it through as a borrower cost per DOR.
Review your draft Closing Disclosure early. Ask your attorney to explain each tax line and confirm the amounts before closing day.
Calculations, who pays, and negotiation strategies
How the amounts are calculated and collected
- Transfer tax: Calculated from the final sale price using a state formula. It is paid at the time the deed is recorded. The PT‑61 transfer declaration must be completed before the clerk records the deed per DOR and the statewide PT‑61 e‑filing process.
- Intangible tax: Calculated from the principal amount shown on the recorded security instrument using a state formula and a statutory cap. The county collects it at recording; the lender is the statutory payer but may pass the cost to the borrower at closing per DOR. The recording must occur within the required window, and penalties can apply if not timely paid per DOR.
Your closing attorney will compute both taxes according to statute and local clerk requirements and include them on your final figures.
Who typically pays and how to negotiate credits
- Transfer tax: By statute, the person executing the deed is responsible, which is usually the seller. But Georgia contracts often shift who pays. Buyers and sellers can negotiate this in the purchase agreement, and the PT‑61 should reflect that decision per DOR.
- Intangible tax: Collected from the lender at recording, but many lenders list it as a borrower charge on the Closing Disclosure. You cannot negotiate the tax itself, but you can negotiate seller credits or builder concessions to offset it, subject to loan program limits see DOR’s overview.
Tips:
- Set expectations in the offer: spell out who pays the transfer tax and what credits will offset buyer closing costs.
- Align with your lender: some loan types cap credits; confirm limits before you negotiate.
- Confirm in writing: make sure the Closing Disclosure and PT‑61 reflect your agreement.
Simple scenario examples buyers and sellers can model
Note: These are simplified illustrations. Your attorney will calculate actual figures.
- Cash purchase: Buyer pays standard closing fees; transfer tax appears on the seller side by default unless reassigned in the contract.
- Financed purchase (30‑year mortgage): Both taxes likely show up. Transfer tax is tied to the sale price; intangible tax is tied to the loan principal and appears among loan costs.
- Short‑term bridge loan closing after July 1, 2025: Transfer tax applies on the sale. If the bridge note matures at 62 months or less, the intangible tax may not be due under the updated threshold HB 586. Confirm note terms with your lender and attorney.
- New construction: Builders sometimes offer credits that can offset buyer closing costs, including taxes. Verify program limits with your lender.
Atlanta and Fulton County nuances, plus special cases
Local recording and closing practices to expect
Georgia is an attorney‑closing state. In Fulton County, the Clerk of Superior and Magistrate Courts handles real estate recordings and collects transfer and intangible taxes at recording. The office accepts PT‑61 filings and eRecording through approved vendors, and it will not record a deed until the PT‑61 is complete and tax is paid per Fulton County’s Real Estate Services and the statewide PT‑61 process. Local recording fees are separate from state taxes and can change; verify the current fee schedule near closing Fulton fee schedule.
Common exceptions and edge cases
- Family transfers, estate deeds, or corrective deeds can be treated differently depending on whether consideration is paid. Your attorney will advise whether any tax applies and what documentation is needed see DOR basics.
- Refinances: No transfer tax since there is no sale deed, but the new long‑term loan’s security instrument can trigger the intangible tax per DOR.
- Loan term changes post–July 1, 2025: Loans at 62 months or less may be exempt from intangible tax. Confirm how maturity is defined in your note and the effective date of the change for your loan docs HB 586.
- Condominium vs. single‑family: Tax treatment depends on the deed and the loan, not the property type. Title and recording steps may differ slightly based on the condo association’s documents.
- Assumptions or wraps: Structure and paperwork drive tax outcomes. Get your attorney involved early.
Budgeting steps and your closing timeline
What to confirm with your lender and closing attorney
- Ask your lender for a fee estimate that includes recording charges and any intangible tax.
- Request a draft Closing Disclosure several days before closing and review the tax line items.
- Confirm who pays the transfer tax per your contract, and have your attorney verify the PT‑61 matches that choice state PT‑61 resource.
- If your loan is near 62 months, ask your lender and attorney to confirm whether the updated intangible tax rule applies to your documents and closing date HB 586 reference.
How to plan your cash‑to‑close or seller net
- Build a simple worksheet: start with your price, credits, and estimated fees. Add taxes as separate line items.
- Set a small buffer: local fees can change and final prorations can shift the numbers.
- Lock the details: 48 to 72 hours before closing, confirm final figures and have your bank wire ready.
Get broker-led guidance for a smoother close
When you can see these costs coming, you can negotiate smarter and avoid last‑minute stress. The Maxwell Haus Residential Agency will help you forecast taxes and fees, align credits with your loan, and coordinate with your closing attorney in Atlanta and across Fulton County. Ready to plan your purchase or sale with clear numbers? Get started with a quick valuation or consult today at The Maxwell Haus Residential Agency.
FAQs
What is Georgia’s real estate transfer tax?
- A state excise tax due when a deed is recorded after a sale. Your attorney files a PT‑61 and remits the tax at recording DOR overview.
What is the intangible recording tax?
- A tax due when a long‑term loan is recorded against the property. It is based on the loan’s principal and is collected at recording, often passed through to the borrower by the lender DOR guidance.
Who usually pays these taxes?
- Transfer tax is commonly assigned to the seller by contract, even though statute ties it to the person executing the deed. Intangible tax is collected from the lender but often appears on the buyer’s side as a pass‑through cost DOR guidance.
How did the 2025 rule change affect intangible tax?
- For loans made on or after July 1, 2025, only notes that extend beyond 62 months are subject to the intangible tax. Shorter loans at 62 months or less are generally exempt HB 586.
Where are these taxes paid in Atlanta?
- At recording with the Fulton County Clerk of Superior and Magistrate Courts. The office requires a completed PT‑61 for the deed and collects any applicable taxes and local recording fees Fulton Real Estate Services.
How do I avoid surprises before closing?
- Request a draft Closing Disclosure early, confirm who pays transfer tax in the contract and PT‑61, and ask your lender to verify whether your loan triggers the intangible tax. Your closing attorney will calculate and confirm exact amounts DOR resources.
