Oklahoma transfer tax: $0.75 per $500, who pays and exemptions

What is the Oklahoma documentary stamp tax?

Section 3201 of Title 68 taxes each deed that conveys real estate that was sold, when the consideration, minus any lien that stays on the property, is more than $100. The rate is $0.75 for each $500 of consideration “or any fractional part thereof.” That works out to $1.50 per $1,000, or 0.15% of the price.

“Consideration” means the actual value paid or to be paid, in money or anything else, excluding interest, and it includes any debt the buyer assumes. The tax attaches when the deed is signed and delivered to the buyer.

The tax is paid with documentary stamps only. The Oklahoma Tax Commission designs them and the county clerks sell them (68 O.S. § 3204). The stamps must be on the deed before it is accepted for recording, and the buyer’s name and address must appear on the face of the deed (§ 3203). The Oklahoma County Clerk repeats these rules in the Tax Commission notice it posts: stamps are sold only when the deed is offered for filing, and they cannot be added after filing.

Who pays the tax?

Section 3203 says the tax is paid by “any person who makes, signs, issues, or sells” the deed, “or for whose use or benefit the same are made, signed, issued or sold.” In a normal sale the seller signs and sells the deed, so the wording points first at the seller. The statute does not say whether the purchase contract can move the cost to the buyer. Check the line in your contract and on the settlement statement.

Foreclosure sales are different. If a deed comes from a foreclosure and the grantee is not the mortgage holder, the tax applies and “shall be paid by the purchaser” (§ 3202, item 13).

Which deeds are exempt?

Section 3202 lists the exemptions. The ones most relevant to homeowners:

When you claim an exemption, the Tax Commission notice says you must write on the face of the deed: “Exempt Documentary Stamp Tax OS Title 68, Article 32 Section 3201 or 3202, Paragraph ___.” A note that the price is under $100 no longer works. The person claiming the exemption writes the note.

Does a county or city add its own tax?

The sources Payotte read for Oklahoma County show only the state stamp tax. The county clerk’s page lists a Documentary Stamp Tax Affidavit and the state handout, and no county or Oklahoma City transfer tax appears in them. Ask your closing company to confirm there is no local charge on your deed.

Is there a tax on the mortgage too?

Yes, and it is separate. Oklahoma taxes real estate mortgages under 68 O.S. § 1904: $0.10 for each $100 of principal when the mortgage runs five years or more, with lower rates for shorter terms. The county treasurer also collects a $10 certification fee on each mortgage. The statute says the mortgagor, the mortgagee or any interested party may pay, so check your Loan Estimate and contract to see who does. For the full cost list, see Oklahoma closing costs.

A worked example

This is an example, not a quote. Assume a $250,000 sale with a $200,000 mortgage of 30 years.