Buying or selling in 12 South and trying to decode transfer taxes and recording fees? You are not alone. Closing costs in Tennessee include a few state and county items that are easy to miss but simple to plan for once you know the rules. In this guide, you will see what the taxes are, who typically pays, how much they add up to at common 12 South price points, and what to expect at the closing table. Let’s dive in.
Tennessee transfer tax explained
Tennessee charges a realty transfer tax when a deed that transfers property is recorded. The tax is due when the deed is presented for recording, and the county will not record the deed until the tax is paid. The statutory rate is 37 cents per 100 dollars of value, which is 0.37 percent of the taxable amount. You can confirm the calculation method in the Tennessee Department of Revenue guidance and the recording rule in Tennessee Code Annotated §67-4-409.
What is taxed
For a typical warranty deed, the taxable base is the greater of the consideration on the deed or the fair market value. Quitclaim deeds have a different rule and are based on actual consideration. In practice, your title company will compute the tax and collect it at closing.
Transfer and mortgage tax rates
- Transfer tax: 0.37 percent of the taxable value (sale price or fair market value, whichever is higher).
- Mortgage recording tax: $1.15 per $1,000 of new indebtedness. The first $2,000 of indebtedness is exempt in many cases, so you often subtract about $2.30 from the calculated amount. Davidson County lists this rate on its Register of Deeds fee page.
Quick math you can use:
- Transfer tax estimate: sale price × 0.0037.
- Mortgage tax estimate: loan amount × 0.00115, then subtract about $2.30 for the small exemption.
Davidson County recording fees
Davidson County charges per-page recording fees in addition to state taxes. Expect $5 per page with a $10 minimum, plus a $2 data processing fee on many documents. There is also a $1 register receipt fee when the state conveyance tax is paid. You can review details and use the county calculator on the Register of Deeds filing fees page.
Who pays in practice
By law, the grantee or transferee, which is usually the buyer, is responsible for the transfer tax when the deed is recorded. That said, buyers and sellers often negotiate who pays these costs in the purchase agreement. Always confirm the allocation in your contract. See the Department’s note on responsibility and collection in this guidance.
12 South price examples
Below are simple, rounded estimates to show how the taxes work at common 12 South price points. Page counts and lender requirements can change county fees, so your title company will provide the exact figures.
Example A: condo or entry-level home at $350,000
- Transfer tax: 350,000 × 0.0037 = $1,295.
- Deed recording fee: about $13 total for a standard two-page deed.
- Mortgage tax (80 percent loan at $280,000): 280,000 × 0.00115 = $322.00, minus $2.30 exemption ≈ $319.70.
- Deed of trust recording fee: about $12 for a standard two-page instrument.
Example B: single-family home at $1,000,000
- Transfer tax: 1,000,000 × 0.0037 = $3,700.
- Deed recording fee: about $13.
- Mortgage tax (80 percent loan at $800,000): 800,000 × 0.00115 = $920.00, minus $2.30 ≈ $917.70.
- Deed of trust recording fee: about $12.
Example C: higher-end home at $2,500,000
- Transfer tax: 2,500,000 × 0.0037 = $9,250.
- Deed recording fee: still modest, about $13 assuming two pages.
- Mortgage tax (80 percent loan at $2,000,000): 2,000,000 × 0.00115 = $2,300.00, minus $2.30 ≈ $2,297.70.
- Deed of trust recording fee: about $12.
Exemptions to know
Certain transfers are exempt under Tennessee law. Common examples include transfers between spouses, transfers under a will, certain transfers to or from a revocable living trust when the transferor is the trustee, and releases of life estates with special valuation rules. Review the statute for specifics in Tennessee Code Annotated §67-4-409 and see the Department’s explanation of valuation options for life estates in its guidance. If you think an exemption may apply, address it early with your title company and attorney.
What to expect at closing
Your title or closing agent will calculate the transfer and mortgage taxes and collect them at closing. They will also collect county recording fees and handle the filing with the Davidson County Register of Deeds. The deed will not be recorded until the required taxes and fees are paid, and an oath of value or sworn consideration is provided as required by statute. That is why it is important to preview your closing statement a few days before signing.
Quick checklist
- Confirm who pays the transfer tax and recording fees in your purchase agreement.
- Run quick estimates using the formulas above, then ask your title company for an itemized quote.
- If you have a loan, include the mortgage recording tax in your budget.
- Check whether any exemptions might apply to your situation.
- Expect modest per-page fees from the county on the deed and deed of trust.
Ready for clear numbers tailored to your purchase or sale in 12 South? Get a personal, itemized closing-cost review and hands-on guidance with Bobbi Jo Barnes Real Estate, LLC.
FAQs
How much is Tennessee transfer tax for a 12 South home purchase?
- The rate is 0.37 percent of the taxable value, which is typically the sale price or fair market value, calculated when the deed is recorded.
Who usually pays transfer tax in Nashville closings?
- By law the grantee or buyer is responsible, but buyers and sellers often negotiate the allocation in the contract, so confirm your agreement terms.
When is Tennessee transfer tax paid during closing?
- It is paid at recording, and the county will not record the deed until the tax is paid and required statements are provided.
How is the Tennessee mortgage recording tax calculated?
- Multiply the loan amount by 0.00115 and subtract about $2.30 for the first $2,000 exemption to estimate the tax on a typical residential loan.
What exemptions from transfer tax might apply to my 12 South transaction?
- Common statutory exemptions include certain spouse transfers, transfers under a will, some trust-related transfers, and releases of life estates, subject to specific rules.
