What Are Massachusetts Tax Stamps?
One of the things that I have realized over the years while representing Massachusetts home sellers is the fact that many are entirely unaware that there is a tax to sell your home!
While it is true that if you live in Massachusetts, you come to grips quickly that just about everything gets taxed, sometimes this tax law is forgotten about.
If you have never sold a Massachusetts home before, you may also not even realize it exists. This tax on selling a home is known as the Massachusetts tax stamps. In most areas of Massachusetts, the tax stamp equals $4.56 per thousand dollars of the home’s sales price.
Tax stamps are one of the most significant closing costs for a seller.
Example of How Massachusetts Tax Stamps Work
So, for example, if you sell your home for $400,000, you would owe the State of Massachusetts $1824.00 ($4.56 x 400). The money paid for the tax stamps is income given to the appropriate registry and is forwarded to the Commonwealth of Massachusetts Department of Revenue.
While most of my Real Estate sales are in Middlesex, Worcester, and Norfolk Counties, it should be noted that in Barnstable County, the tax rate is $5.70 per thousand so the cost involved with selling a property is slightly higher.
The Dukes and Nantucket Counties also charge an additional 2% of the sales price that gets paid to the local land bank commission.
One of the things I always do with my clients is explaining all the costs involved with selling their home or condominium. Nobody likes surprises, especially when they will be coming out of their wallet!
Besides a Real Estate commission that can vary but is likely going to fall between 4% to 6%, the Massachusetts transfer tax (stamp tax) is the largest expense a seller will have to be prepared for.
So, what expenses can you expect to have when selling a Massachusetts home?
Real Estate Commission
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