Media type · Transfer of ownership
Transfer tax
A tax on transferring property, usually calculated on the purchase price.
Key facts
| Charged on | Transfer of ownership |
|---|---|
| Base | Price or assessed value |
| Rate | Set nationally or locally |
| Paid by | Usually the buyer, by law or practice |
| Check | Current rate and reliefs |
How it is calculated
The tax is usually a percentage of the price, sometimes with bands that apply different rates to parts of the value. A reduced rate may apply to a first home or to a particular kind of buyer.
Because the base and the bands are local, the only reliable rate is the one published by the authority for the transaction date. Confirm whether the price or an assessed value is used.
Frequently asked questions
Is transfer tax the same as stamp duty?
In some countries the names describe the same charge; in others they are separate duties on the same purchase. Check which one applies where you are buying.
Can the tax be added to the mortgage?
Sometimes, if the lender permits it. Financing the tax increases the loan and the interest paid over the term.