The Smaller of Georgia's Two Taxes, and the Agency States Who Is Liable
Program and regulatory figures verified October 10, 2026. Details change; confirm your scenario with us.
Worth getting right, and worth keeping in proportion: in Georgia the deed tax is the smaller of the two taxes a buyout triggers.
The rate
From the Georgia Department of Revenue, Real Estate Transfer Tax:
"The real estate transfer tax is based upon the property's sale price at the rate of $1 for the first $1,000 or fractional part of $1,000 and at the rate of 10 cents for each additional $100 or fractional part of $100."
★ Above the first thousand dollars that is 0.10%. The Department gives the statutory cite as O.C.G.A. 48-6-1 – 48-6-10.
★★ Who is liable, and who pays — stated cleanly in one sentence
"The tax must be paid by the person who executes the deed, instrument, or other writing or the person for whose use or benefit the deed, instrument, or other writing is executed. The seller is liable for the real estate transfer tax, though frequently the parties agree in the sales contract that the buyer will pay the tax."
★★ That is a distinction worth pausing on, because it is routinely blurred: statutory liability and who actually pays are different things. Georgia's own agency states both halves in a single sentence, so we quote it rather than paraphrase.
★ In a divorce the practical point is that allocation is a contract matter between the parties, and we take no view on it. We are the lender, not your counsel.
★★★ The clause that matters in a divorce
O.C.G.A. § 48-6-1 measures the tax on the consideration or value of the interest conveyed —
"(exclusive of the value of any lien or encumbrance existing prior to the sale and not removed by the sale)"
★★★ In a divorce, an existing mortgage may or may not be removed by the transaction. The statute says the consideration is measured exclusive of a prior lien not removed by the sale.
★★ We publish that clause and we do not apply it to any particular transaction. Whether it reaches your deed depends on facts and on how the transaction is structured, and that is a question for the closing attorney, not a website. ★ We flag it because it can change the base the tax is measured on, and because nobody mentions it.
★★★ Keep it in proportion
The deed tax is the smaller of the two Georgia taxes a buyout triggers:
| Tax | Rate | Note |
|---|---|---|
| ★★★ Intangible recording tax: on the note | ★★★ $1.50 per $500 of face amount = 0.30% | capped at $25,000 |
| Real estate transfer tax, on the deed | $1 for the first $1,000, then 10 cents per $100 = 0.10% | ★ the seller is liable |
★★★ The intangible recording tax on the note is three times the rate, and it is charged on the loan, which in a buyout is usually larger than the equity transferred. If you are budgeting one Georgia tax, budget that one. The bigger tax.
★ Mechanics
Once paid, "the clerk of the superior court or their deputy will attach to the deed… a certification that the tax has been paid." ★ The declaration is filed electronically through the PT-61 process run by the Georgia Superior Court Clerks Cooperative Authority. Your closing attorney handles it.
★ What we are not publishing
- Any county recording-fee schedule, county-administered and not read.
- Any application of the prior-lien exclusion to a specific transaction.
- Any rate, annual percentage rate or payment figure. This site publishes none.
- Any tax advice. We are a lender.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
How much is the Georgia real estate transfer tax?
One dollar for the first $1,000 of the sale price or fractional part of $1,000, and 10 cents for each additional $100 or fractional part of $100, which is 0.10 percent above the first thousand dollars.Who is liable for the Georgia transfer tax?
The Department of Revenue states that the seller is liable for the real estate transfer tax, though frequently the parties agree in the sales contract that the buyer will pay it. Statutory liability and who actually pays are different questions, and allocation is a contract matter.Is an existing mortgage included in the Georgia transfer tax calculation?
O.C.G.A. section 48-6-1 measures the consideration exclusive of the value of any lien or encumbrance existing prior to the sale and not removed by the sale. Whether that clause reaches a particular deed depends on the facts and the structure, which is a question for the closing attorney.Which Georgia tax is bigger in a divorce buyout?
The intangible recording tax on the note, at 0.30 percent of the face amount, is three times the rate of the transfer tax on the deed at 0.10 percent, and it is charged on the loan amount rather than on the equity transferred.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about mortgage financing during and after a divorce. Not a loan commitment, and not legal, tax or financial advice. Cornerstone First Mortgage is a lender; it is not a law firm, does not represent any party to a divorce, does not make attorney referrals, takes no position on how property should be divided, and gives no advice on whether to demand a jury trial. Georgia property division is governed by the Official Code of Georgia Annotated and by case law and is applied by the superior courts; the intangible recording tax and the real estate transfer tax are administered by the Georgia Department of Revenue and collected by the clerk of the superior court, and homestead exemptions are administered by county tax officials. Agency requirements described here are Fannie Mae Selling Guide provisions current as of the date shown and are subject to change and to lender overlays. Housing market figures describe the twelve months to August 2026 and are not a forecast. All loans are subject to borrower, property and program qualification.