Tennessee Realty Transfer Tax: Rate, Who Pays, Exemptions

Updated October 2026. Tennessee Department of Revenue Recordation Tax Manual and UT County Technical Assistance Service pages checked on October 31, 2026.

Tennessee’s realty transfer tax is 37 cents per $100 of the price or the home’s value, whichever is greater. On a $330,800 home, Zillow’s typical Tennessee value for September 2026, that’s $1,223.96. As of October 2026, state law puts the tax on the buyer, the grantee, unless your contract moves it.

Jump to: 🧮 The math · 🤝 Who pays · 🏦 Mortgage tax · 📜 Quitclaims and life estates · 🚫 Exempt transfers · 💵 Seller costs · ❓ FAQ

How is Tennessee’s realty transfer tax calculated?

The Department of Revenue’s Recordation Tax Manual (June 2023 edition) describes the tax as $0.37 per $100 “for the privilege of publicly recording documents evidencing all transfers of realty.” For a normal sale, the base is the greater of two numbers: what the buyer pays, or what the property would bring in a fair and voluntary sale.

Most arm’s-length sales use the price. The value test matters when a home sells well under market, for example to a friend. Here’s the tax at a few prices.

Quick math: move the decimal two places left and multiply by 0.37. Or multiply the price by 0.0037. The figure is the same in every county, because it’s a state tax collected locally.

Who pays the transfer tax in Tennessee, buyer or seller?

The buyer, by default. The Revenue manual says “the grantee or transferee” named on the deed pays the realty transfer tax. UT’s County Technical Assistance Service (CTAS) says the same: the grantee pays on the value or the consideration, whichever is greater.

That’s a big difference from many states, where the seller pays the deed tax. Still, a contract can shift any cost. If a buyer asks you to cover the transfer tax as part of a deal, it becomes a negotiated term. Write it in plain words, with a dollar figure, so nobody argues at the closing table.

The grantee must also state the actual price or value under oath on the face of the deed, in front of the register. A statement known to be false is punished as perjury. The Department also runs a discovery program. It picks a county and a date range at random and compares the value sworn on each deed with the assessor’s value, then may send inquiry letters when they don’t match.

What is Tennessee’s mortgage tax, and who pays it?

It’s the second half of the recordation tax. When a mortgage or deed of trust is recorded, Tennessee charges 11.5 cents per $100 of the debt, and the first $2,000 isn’t taxed. The mortgagor, meaning the borrower, pays. In a sale, that’s the buyer who takes out a loan.

On a $300,000 loan, the tax is ($300,000 − $2,000) ÷ 100 × $0.115 = $342.70. Every recorded loan must state its maximum principal for Tennessee recording tax purposes, so the register can check the figure.

Thinking about letting a buyer take over your loan? The manual splits assumptions in two. If the buyer promises to pay your debt but you stay liable, there’s no new debt and no indebtedness tax. If the lender signs a new deal with the buyer and releases you, it’s a new debt, and the tax is due. If you’ll carry the financing yourself, the note you record is a debt instrument too.

How are quitclaim deeds and life estates taxed in Tennessee?

Quitclaim deeds. A true quitclaim, one that only passes whatever interest the grantor has, is taxed on the consideration actually paid. That’s often $0 or a small amount. But the manual warns that wording matters. A deed that says “to have and to hold,” “in fee simple” or “I warrant the title” shows intent to convey the property itself. That deed is taxed on fair market value, even if someone titled it a quitclaim.

Retained life estates. Parents sometimes deed a home to a child but keep the right to live there. The tax is then based on market value minus the value of the life estate. The manual’s example: a 70-year-old father transfers a $250,000 home in September 2018 and keeps a life estate. Using the state’s actuarial table, the life estate is worth $103,235. The tax base becomes $146,765, and the tax is $543.03. The deed’s preparer must show that math on the filing.

Which Tennessee transfers don’t pay the transfer tax?

Section 67-4-409 lists the exempt transfers, and the Revenue manual repeats them. In plain terms, no transfer tax is due on:

• A leasehold, meaning an estate for a fixed number of years.
• Creating or ending a tenancy by the entirety between spouses, including a conveyance from one spouse to the other.
• A deed dividing land that was held by tenants in common.
• Releasing a life estate to the people who hold the remainder.
• An executor’s deed carrying out a will.
• Deeds that adjust property between divorcing spouses under a court decree or settlement.
• Moving a home into your own revocable living trust, or back out to you or your spouse.
• A trustee’s deed that distributes trust property to beneficiaries.

No oath is required on an exempt transfer. A normal sale to an outside buyer isn’t on this list, so plan for the tax.

Where is the Tennessee transfer tax paid?

At the register of deeds in the county where the deed is recorded. The register can’t record the deed until the tax is paid. CTAS explains that registers keep 5% of the state transfer and mortgage taxes they collect, as their commission. That share comes out of the tax, so it isn’t an extra charge to you.

Recording fees are separate. CTAS notes a $2.00 data processing fee on each non-UCC instrument recorded, on top of the register’s standard fees, which depend on the document. Your title company or closing attorney collects all of it on the settlement statement and records the deed for you.

What does a Tennessee seller actually pay at closing?

With the transfer and mortgage taxes on the buyer’s side, a Tennessee seller’s list is usually short:

• Your loan payoff and any release recording.
• Your share of the year’s property taxes, prorated to the closing date.
• Deed preparation, if your contract assigns it to you.
• Your share of title or closing fees, as the contract splits them.
• Any buyer’s agent pay you choose to offer, which is negotiable.
• Your listing cost. With Beycome Basic, that’s $99 upfront and $0 at closing.

Look up your parcel and assessment with our Tennessee property tax records guide. For a wider view of who covers what, see who pays closing costs when selling a home.

Do you need a realtor to sell a house in Tennessee?

No, it’s not required; it’s your choice. A listing agent prices, markets, shows and handles offers, and is paid for that work. Selling on your own, you do more and keep more. The transfer tax works the same on either path.

Beycome puts your home on the major home search sites and the MLS for $99 in Tennessee, with $0 at closing. Our Tennessee MLS listing guide maps the state’s regional MLSs, and our Tennessee FSBO contract guide shows where to write who pays which cost. For the full plan, read how to sell a Tennessee home without a realtor. On Concierge, a dedicated expert negotiates with you, always on your side, and every decision stays yours. 22,000+ homeowners have used Beycome, saving over $225 million in total (Beycome internal data, October 2026). See Tennessee packages.

Tennessee realty transfer tax: questions

Reviewed by Beycome Brokerage Realty LLC, a licensed real estate brokerage. Licenses: beycome.com/faq/how-to/are-you-a-licensed-broker/.