North Carolina transfer tax: $1 per $500, paid by the seller

What is the state rate?

NCDOR describes the tax this way: it is levied on each instrument that conveys an interest in real property to another person, at $1 on each $500, or fractional part, of the consideration or value of the interest conveyed. County Registers of Deeds say the same thing in their own words. Craven County lists “$1 per $500 (or any part thereof) of Consideration.” Moore County adds that it works out to $2 per $1,000. NC law calls the stamp an “excise tax,” and people often call it “revenue stamps” or “deed stamps.”

The “fraction” rule means you always round up. A sale at $431,900 is 863.8 units of $500, so you pay for 864 units.

The $333,000 row is the 2024 Census Bureau estimate of the median home value in North Carolina, and $431,900 is the figure for Charlotte (table B25077, owners’ estimates). They are used here only as round examples of price.

The Register of Deeds also expects the tax to be shown on the deed. Moore County states that the excise stamp “must be reflected on the front of a Deed.” Ask your closing attorney how the stamp should appear on your deed.

Who pays?

By law, the transferor, meaning the seller, pays. NCDOR says the tax “is paid by the transferor to the register of deeds of the county in which the real estate is located prior to recording the instrument of conveyance.” Brunswick County’s schedule labels it “Paid by person selling property.”

Buyers and sellers can still bargain over costs in the contract. But the rule you can count on is that the tax belongs to the seller. The Closing Disclosure for your loan will list each charge, so you can see who pays what. For the other costs on each side of the table, see closing costs in North Carolina.

What about county and city taxes?

Mecklenburg County and Charlotte have no local transfer tax. The Perquimans County Tax Department says it is “one of only seven counties in North Carolina that levies a local excise tax on the transfer of real estate.” The others are Camden, Chowan, Currituck, Dare, Pasquotank and Washington. Mecklenburg is not on the list. I could not open Mecklenburg’s own Register of Deeds pages, so confirm with that office before closing.

In those seven counties, the local tax is $1 per $100, or fraction, which is about 1% of the price, rounded up to the next dollar. It is on top of the state tax and it is paid to the Register of Deeds when the document is recorded. Perquimans County says it applies to regular sales (regardless of profit or loss), to exchanges, to timber deeds and to leases of more than ten years. For a $431,900 sale there:

In Charlotte, the same sale carries only the $864. For more on the city, see our Charlotte guide.

Are there exemptions?

Yes, but I could not read the state statute that lists them, because the General Assembly’s website blocked my access. Do not assume your sale qualifies. Ask your closing attorney or the Register of Deeds whether your deed is exempt, and how the deed must state it.

For the local tax in the seven counties, Perquimans County says it does not apply to deeds of gift, foreclosure deeds or deeds in lieu of foreclosure to the mortgage holder, deeds from local, state or federal government, or transfers in which no consideration is paid or due. That list is for the local tax only. It does not prove that the state tax works the same way.

Where does the money go?

NCDOR’s description: half of the proceeds go to the county’s general fund. Of the other half, the county may keep up to 2% for administration and send the rest to the state, which puts 75% into the Parks and Recreation Trust Fund and 25% into the Natural Heritage Trust Fund. That table dates from the mid-2000s, so check current allocation with NCDOR if it matters to you.

Example: selling a $431,900 home in Charlotte

This is an illustration. Assume the sale price is the Charlotte median value of $431,900.

• Excise tax, paid by the seller: 864 × $1 = $864.
• Local transfer tax: none, because Mecklenburg is not one of the seven counties.
• Recording fees: separate from the tax; see the closing-costs page.

The excise tax does not depend on the loan size or the commission. It also does not depend on the property tax bill, which is separate: see property tax in North Carolina. By law the seller owes it, so if you are selling, subtract it from your expected proceeds, along with the real estate commission and any capital gains tax.