An Explanation Of Boston MA Real Estate Transfer Taxes And How They Are Calculated

When real estate is transferred in Boston MA, real estate transfer taxes (also referred to as deed recording taxes) are due. Transfer taxes are not the same as property taxes in that they are due only once at closing while property taxes are continually charged. It is helpful for home buyers and sellers to understand what a transfer tax is and what it may impact closing costs. This article provides an explanation of Boston MA real estate transfer taxes and how they are calculated.

Boston MA Real Estate Transfer Taxes and How They Are Calculated

The transfer of real estate means a grant, sale, exchange, assignment, quitclaim, contract for sale, or other change of ownership in title to real property. In Boston MA, sellers are charged real estate transfer taxes. The amount of Boston MA real estate transfer taxes is based on the purchase price of the home and the tax rate of $4.56 per $1,000. It is included as part of closing costs for sellers and is usually required before the deed recorded. The calculation of the tax is often handled by the closing agent and is detailed on the settlement statement.

An Explanation Of Boston MA Real Estate Transfer Taxes

The amount of tax due is based on the applicable rate on the day that a closing takes place and the deed is recorded. Transfer tax rates could increase periodically. Suggested increases are often opposed by industry professionals. Ask a real estate professional for current updates on tax rates. You may also want to check with your accountant on whether real estate transfer taxes have any tax benefits. An explanation of Boston MA real estate transfer taxes and how they are calculated, as provided above, is only general information. Contact Scott Beard at Bean Group by calling 617-651-0081 or emailing scott.beard@beangroup.com with any questions.

About Scott Beard

Finding the right Realtor can be the difference between a happy, stress-free home buying or selling experience, and an unhappy, stressful experience. That’s why choosing the right Agent to begin with is key. I have helped hundreds upon hundreds of clients during my career and sold over $55 million in properties and look forward to putting my experience to work for you.
Contact me at any time. I look forward to hearing from you.

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