The rate: $2.28 per $500
The statute, M.G.L. c. 64D, section 1, sets the tax at $2 for each $500 of consideration (the price), or fraction of $500, when the consideration is over $100. Massachusetts adds a 14% surcharge on top, which brings the working rate to $2.28 per $500. The Department of Revenue states that rate in Directive 95-4. That works out to about $4.56 per $1,000 of price.
The tax is figured on the price paid, rounded up to the next $500. A mortgage the seller is paying off does not reduce it. DOR Directive 88-18 explains that only an encumbrance that stays on the property after the sale, such as a mortgage the buyer takes the property "subject to," comes off the taxable amount. A new mortgage the buyer takes out is part of the price and is taxed.
Worked examples at common Massachusetts prices
Assumptions: a normal sale for cash or with a new mortgage, in any county except Barnstable, with the price equal to the consideration. The statute excludes the first $100 and rounds up each $500, which is built into these figures. Your attorney confirms the exact stamps.
| Sale price | Units of $500 | Tax at $2.28 per $500 | Same, per $1,000 |
|---|---|---|---|
| $400,000 | 800 | $1,824 | $4.56 |
| $600,000 | 1,200 | $2,736 | $4.56 |
| $800,000 | 1,600 | $3,648 | $4.56 |
| $1,000,000 | 2,000 | $4,560 | $4.56 |
In Barnstable County the rate in Directive 95-4 is $1.71 per $500, so the same $600,000 sale would be 1,200 units at $1.71, or $2,052.
Who pays the deed excise tax
M.G.L. c. 64D, section 2 says the tax "shall be paid by the person who makes or signs the deed, instrument or writing, or for whose benefit the same is made or signed." In a sale, the seller signs the deed. That is why Massachusetts sellers budget for it, and why it is on the seller side of the closing statement.
Payment is shown by adhesive stamps affixed to the deed, which is why people call it "tax stamps." Your closing attorney handles the stamps, and the amount comes out of your proceeds at closing. It appears as a line on your settlement statement.
Nothing in the statute stops a buyer and seller from agreeing otherwise in the purchase and sale agreement. If a buyer asks you to pay more of their costs, that is a price negotiation, not a change in the law.
Exemptions
- Bona fide gifts. The tax applies only to realty that is "sold." DOR Directive 89-16 says it does not apply to deeds given without consideration, even if the deed recites something like "$1.00 and other valuable consideration."
- Deeds to secure a debt. The statute says the tax does not apply to a document given to secure a debt, such as a mortgage.
- Government parties. It does not apply when the Commonwealth, a city or town, or the United States or its agencies are a party to the deed.
Family transfers and estate transfers raise their own questions about what counts as a gift, what counts as consideration and what taxes apply. Get legal advice before you sign. If the house came from an estate, see what to do with a house after a parent dies.
Barnstable, Nantucket and other counties
Barnstable County is the one county named in the statute. The statute's base rate there is $1.50 per $500, and DOR Directive 95-4 gives the rate with the surcharge as $1.71 per $500 of price over $100.
The statute text we read also mentions Nantucket County in a sentence about how county funds may be spent, but it does not set a different Nantucket rate, and we could not confirm any other county differences. If you are selling on the Cape or the islands, ask your attorney which rate applies.
The north-of-Boston towns this site focuses on (Melrose, Malden, Medford, Stoneham, Wakefield, Saugus, Lynn, Peabody) are not in Barnstable County, so the $2.28 rate applies to them. This guide covers only the state deeds excise. We did not check any town or county for other local transfer charges.
What to do with this number
Add the tax to your other selling costs. See what it costs to sell a house in Massachusetts and seller closing costs. The net proceeds calculator includes it. The tax is also a selling expense that can reduce your taxable gain. See cost basis and reporting.