The Massachusetts deed excise tax, often called transfer stamps or the stamp tax, is a state tax on recording a deed that conveys real estate for more than $100. Outside Barnstable County the rate is $2.28 for each $500 of the price, or fraction of $500, which works out to about $4.56 per $1,000. In a sale, the seller pays it when the deed is recorded at the Registry of Deeds.
For the rest of what changes hands at a closing, see our guide to Massachusetts closing costs.
Where the $2.28 comes from
Chapter 64D, § 1 of the General Laws sets the base rate at $2.00 for each $500 of consideration (or fractional part) once the price exceeds $100. The Department of Revenue explains in Directive 95-4 that a 14% surcharge (St. 1969, c. 546, § 23) applies on top of that $2.00, which brings the rate to $2.28 per $500 in every county except Barnstable.
“Consideration” means what the buyer pays for the property, exclusive of the value of any lien or encumbrance remaining on it at the time of sale. In a typical Boston sale the seller’s mortgage is paid off from the proceeds, so nothing remains and the whole price is taxed.
Barnstable County is different
Barnstable County (Cape Cod) is the only county with its own county excise on top of the state tax. Chapter 64D sets a lower state rate there: $1.50 per $500, or $1.71 with the surcharge according to DOR Directive 95-4, which is $3.42 per $1,000. According to Barnstable County, the county portion has been $3.06 per $1,000 since July 1, 2016, for a combined $6.48 per $1,000.
Worked example
| Sale price | $500 units | Rate | Excise |
|---|---|---|---|
| $600,000 | 1,200 | $2.28 | $2,736 |
| $800,000 | 1,600 | $2.28 | $3,648 |
| $1,000,000 | 2,000 | $2.28 | $4,560 |
| $800,200 | 1,601 (1,600.4 rounds up) | $2.28 | $3,650.28 |
The same $800,000 sale in Barnstable County, at $6.48 per $1,000, would carry $5,184. Your closing attorney will confirm the exact figure on the settlement statement.
Deed excise estimate
Estimated excise $3,648.00
1,600 units of $500 (a partial $500 counts as a full unit) × $2.28. An estimate only; your closing attorney confirms the exact amount.
Who pays and when
Chapter 64D, § 2 puts the tax on “the person who makes or signs the deed,” and in a sale that is the seller. Here is how it normally happens:
How the excise gets paid
- On the settlement statement. Your attorney (or the buyer’s or lender’s closing attorney) calculates the excise and shows it as a seller charge on the settlement statement.
- At closing. The amount is taken from your sale proceeds at closing.
- At recording. The closing attorney pays it when the deed goes to the Registry of Deeds for recording. Payment is shown by stamps affixed to the deed, sold at registries under § 3.
- No stamps, no recording. The Register may refuse to record a deed without the required stamps (§ 6B).
If the stamps are wrong, an overpayment can be refunded through an abatement application to the Commissioner of Revenue (§ 4).
What the statute exempts
Section 1 of Chapter 64D lists these situations where the excise does not apply:
- Mortgages and other instruments given to secure a debt. A buyer’s mortgage is recorded with recording fees but no excise.
- Deeds where the Commonwealth, a Massachusetts city or town, or the United States, or any of their agencies, is a party.
- Consideration of $100 or less. The tax starts only when consideration exceeds $100.
The Department of Revenue has also issued directives on specific situations, such as exchanges of property (Directive 89-14), bona fide gifts, which are not subject to the excise (Directive 89-16), and transfers of beneficial interests in nominee trusts (Directive 95-5).
Common questions sellers ask us
- Is it negotiable? The tax amount is fixed by law. Who bears it is set by the statute, and any different arrangement would need to be in your Purchase and Sale agreement with your attorney’s guidance.
- Is it deductible? That depends on your tax situation. Ask a tax advisor.
- Does a condo sale pay the same rate? Yes. The rate applies to deeds conveying real estate, and a condo unit deed is one.
Thinking about selling?
The deed excise is one line on a seller’s settlement statement, alongside the mortgage payoff, attorney fees and the smoke and CO certificate. If you’d like a realistic picture of your net proceeds, The Pettengill Group can start with a free home valuation or a conversation. For the full selling process, read our guide to selling a house in Massachusetts.