by BarryThe Georgia Intangible Recording Tax: What Homebuyers Need to Know
If you’re buying a home in Georgia with a mortgage, there’s a state tax you may not have heard of: the intangible recording tax.
What It Is
Georgia’s intangible recording tax is a one-time state tax on long-term notes secured by real property. The rate is $1.50 per $500 of secured debt ($3.00 per $1,000). On a $320,000 mortgage, that’s $960. It’s collected at closing and paid to the county.
When It Applies
The tax applies to new notes secured by Georgia real property, which includes purchase mortgages and most refinances with loan terms exceeding sixty-two (62) months. However, if you are refinancing with the original lender, you are exempt from paying the tax on the portion of the new loan that represents the unpaid principal of the original note, provided the tax was previously paid. This can significantly reduce or eliminate the tax on the refinance.
How It Affects Your Closing Costs
The intangible tax typically adds $750 to $1,500 to closing costs, depending on loan amount. Because it’s based on loan amount rather than purchase price, buyers making a larger down payment pay less.
No Surprises at Closing
Review your Loan Estimate early and compare it to your Closing Disclosure before closing day. A good closing attorney will flag any discrepancies and make sure you understand every charge.
How Edwards Law Can Help
At Edwards Law, we review every closing cost so there are no surprises.
Ready to close? Call us at 404-341-9377 or email info@edwardslawatl.com.