Is there a separate mortgage tax in Tennessee?

Yes. Tennessee charges a mortgage recordation tax of $0.115 per $100 on indebtedness over $2,000. If you finance the purchase and record a deed of trust, this tax applies to the loan amount above the first $2,000.

Who pays the transfer tax in Tennessee, the buyer or the seller?

By local custom the seller usually pays the realty transfer tax and the buyer pays the mortgage recordation tax, but this is negotiable and can be allocated differently in the purchase contract.

Are any Tennessee transfers exempt from the transfer tax?

Certain transfers are exempt or excluded, such as gifts without consideration, transfers between spouses incident to divorce, and some governmental transfers. Most arm's-length sales are fully taxable. Check with your county register of deeds for specifics.

Does Tennessee tax transfer based on price or assessed value?

The tax is based on the greater of the actual consideration (sale price) or the value of the property transferred, so a below-market sale to a relative can still be taxed on the higher value.

Tennessee Real Estate Transfer Tax Calculator

Q: What is the Tennessee real estate transfer tax rate?

Tennessee charges a statewide realty transfer tax of $0.37 per $100 (0.37%) of the greater of the consideration paid or the property's value, under T.C.A. 67-4-409. The rate is uniform statewide with no county add-on.

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The Tennessee real estate transfer tax calculator estimates the recording taxes due when a deed changes hands in Tennessee. The state levies a uniform realty transfer tax of $0.37 per $100 of the sale price, plus a separate mortgage recordation tax when the buyer finances the purchase. Unlike many states, Tennessee applies a single statewide rate with no county or city surcharge, which keeps the calculation straightforward.

How it works

Tennessee’s transfer tax is governed by T.C.A. 67-4-409. The realty transfer tax is 0.37% of the greater of the consideration paid or the property’s value: a $350,000 sale produces $350,000 × 0.0037 = $1,295 in transfer tax. The mortgage recordation tax is $0.115 per $100 (0.115%) of recorded indebtedness, but the first $2,000 of the loan is exempt — so a $280,000 mortgage is taxed on $278,000, giving $278,000 × 0.00115 ≈ $319.70. The tool adds the two together for the total recording cost.

Tips and notes

By custom the seller pays the transfer tax at closing while the buyer pays the mortgage tax, but the purchase contract can shift either one. The tax is computed on the greater of price or value, so gifting or selling below market to a relative does not avoid it. Some transfers — gifts without consideration, certain divorce transfers, and governmental conveyances — are exempt. Because rates and exemptions can change, confirm the figures with your county register of deeds and tn.gov/revenue before relying on them.