Georgia Taxes the Loan You Take Out, at Three Times the Rate It Taxes the Deed
Program and regulatory figures verified October 10, 2026. Details change; confirm your scenario with us.
Most people budgeting a Georgia buyout think about the transfer tax on the deed. The larger number is the one on the loan.
The rate, verbatim
From the Georgia Department of Revenue, Intangible Recording Tax:
"The tax for recording the note is at the rate of $1.50 for each $500.00 or fractional part of the face amount of the note. The maximum amount of recording tax on any single note is $25,000."
★ $1.50 per $500 is 0.30% of the face amount.
★★★ Why this lands squarely on a divorce buyout
A buyout is a refinance. The retaining spouse takes out a new note that retires the existing mortgage and funds the payment to the other spouse. A new note is a recordable security instrument, and Georgia taxes it.
★★★ Two features make it bite harder than people expect:
- ★★★ It is charged on the face amount of the note, not on the equity being transferred. In a buyout the loan is usually larger than the share being bought out, because it also has to pay off the old mortgage.
- ★★ It is three times the deed tax. The transfer tax on the deed is 0.10%; this is 0.30%. The cost nobody mentions is the bigger one. The deed tax
★★ The cap, and who it actually helps
$25,000 is the maximum on any single note. ★ At 0.30%, the cap only binds once a note exceeds roughly eight million dollars, so for essentially every Georgia divorce buyout the cap is irrelevant and the full 0.30% applies. We mention it because it is in the rule, not because it will help you.
★★ Who pays it, and a precise point about disclosure
The Department: the collecting officer collects the tax "from the holder of the security instrument", the lender, and then:
"The holder of the note can pass the amount of tax on to the borrower, but it can not be considered a finance charge in connection with the loan transaction."
★★ So in practice a borrower sees it, and it is not a finance charge. ★ That is a disclosure classification point rather than a discount. It does not reduce what you pay, and we are not going to imply that it does.
★ The mechanics
- Collected by the clerk of the superior court: in some counties with a population of 50,000 or less, a different collecting officer.
- The officer attaches a certificate to the security instrument showing the tax has been paid.
- ★ Failure to pay incurs a penalty of 50 percent of the tax plus 1 percent interest per month.
★★★ Exemptions — and why we publish none
People ask whether a refinance, or a transfer between spouses, is exempt. The Department's own answer is to send you elsewhere:
"Inquiries concerning specific exemptions should be addressed to the local tax officials of the county in which the property securing the note is located."
★★★ So we assert nothing about exemptions, in either direction. We do not tell you one applies and we do not tell you none does. ★★ Ask the local tax officials in your county, and ask before you budget. If an exemption does apply to your situation it is worth real money, and if it does not you want to know that before closing rather than at it.
★★ What to do with this
Put it in the closing budget at the start. ★★ Because it scales with the loan rather than the equity, it is one of the few Georgia costs that gets larger the bigger the buyout, which makes it worth knowing while the buyout figure is still being negotiated rather than after. Where it sits in the overall picture.
★ We publish no rates and no payment figures anywhere on this site, and nothing here is tax advice.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
How much is the Georgia intangible recording tax?
$1.50 for each $500 or fractional part of the face amount of the note, which is 0.30 percent, with a maximum of $25,000 on any single note.Does the intangible recording tax apply to a divorce buyout refinance?
A buyout refinance creates a new note, and the tax is charged on the face amount of the note. Whether any specific exemption applies is a question the Department of Revenue itself directs to the local tax officials of the county where the property is located, so we publish no exemption claim in either direction.Who pays the Georgia intangible recording tax?
The collecting officer collects it from the holder of the security instrument, and the Department states that the holder can pass the amount on to the borrower, though it cannot be considered a finance charge in connection with the loan transaction.Is the Georgia intangible recording tax bigger than the transfer tax?
Yes, three times bigger by rate. The intangible recording tax is 0.30 percent of the face amount of the note, while the real estate transfer tax is 0.10 percent above the first $1,000 of consideration. The recording tax also applies to the loan amount, which in a buyout is usually larger than 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.