Tennessee Recordation Tax Calculator: What FSBO Sellers Pay at Closing ($0.37 per $100)

Tennessee's recordation tax, also called the realty transfer tax, is $0.37 per $100 of the sale price or the property's value, whichever is greater. On a $300,000 home, that's $1,110. By statute and custom, the buyer pays it. Your contract can shift some or all of it to you, so FSBO sellers should know the number either way.

This guide covers what's owed at closing, who usually pays it, and when part of it might land on you. One example: you agree to cover the buyer's closing costs.

Run Your Number: FSBO Closing Cost Calculator for Tennessee

Each line below uses the same formula a title company uses.

Line	Formula	Your number
A. Sale price or fair market value (use the greater)	Enter amount	$______
B. Transfer tax	A × 0.0037	$______
C. Buyer's loan amount ($0 if cash)	Enter amount	$______
D. Mortgage tax	(C − $2,000) × 0.00115, minimum $0	$______
E. County recording fee	Confirm with your county Register of Deeds	$______
F. Seller's share	100% buyer = $0 · 50/50 = half of B · 100% seller = all of B	$______

Source: Tenn. Code Ann. § 67-4-409(a)–(b); calculations by ResultsMLS. This is an estimate, not legal or tax advice. Rates are current as of publication.

How the Tennessee Real Estate Transfer Tax Is Calculated

Multiply the greater of the sale price or the fair market value by 0.0037. That works out to $3.70 per $1,000.

"Recordation tax," "realty transfer tax" and "transfer tax" all mean the same Tennessee real estate transfer tax. We'll call it the transfer tax from here on. It's collected when the deed is recorded with the county Register of Deeds. That applies to a warranty deed and a quitclaim deed alike.

Sale price	Calculation	Transfer tax
$300,000	$300,000 × 0.0037	$1,110
$400,000	$400,000 × 0.0037	$1,480
$600,000	$600,000 × 0.0037	$2,220

Source: Tenn. Code Ann. § 67-4-409(a); calculations by ResultsMLS.

The "greater of" rule matters for below-market sales. Say you sell a $300,000 house to your nephew for $200,000. The tax can still be figured near $300,000, which means $1,110 instead of $740. The figure the clerk uses comes from the oath of consideration, a sworn statement on the deed that gives the tax base. The grantee or their agent usually signs it, and a false oath can bring penalties on top of the unpaid tax.

Tennessee Transfer Tax: Who Pays, Buyer or Seller?

The buyer (grantee) is liable under § 67-4-409(a). Who actually writes the check is decided by your purchase agreement.

Tennessee's standard purchase form, the Tennessee REALTORS RF401, assigns the transfer tax to the buyer by default. That's customary, not required. When you sell on your own, nobody screens offers for you, and the tax can reach your side of the statement in three ways:

1. A written split. The offer asks you to pay half or all of the tax. On a $400,000 sale, a 50/50 split costs you $740, and taking all of it costs you $1,480. This version is easy to spot.
2. A closing-cost credit. The buyer asks for $6,000 "toward closing costs." The tax is never named, but part of that credit pays it. Lenders cap seller credits by loan type, so ask the buyer's lender for the limit.
3. Price up, credit back. The buyer offers $10,000 over asking and asks for $10,000 back. The tax follows the higher price, which adds $37. The mortgage tax rises too if the loan grows, and the home has to appraise at the new price.

The same logic applies after an inspection. If you cut a $400,000 price by $10,000, the tax drops to $1,443. Give a $10,000 credit instead and it stays at $1,480.

Judge offers by your bottom line, not by what each item is called. A direct split is usually the cleanest to audit.

Tennessee Mortgage Tax

Tennessee's mortgage (indebtedness) tax is $0.115 per $100 of the loan amount above $2,000, under § 67-4-409(b). On a cash purchase, it's $0.

It applies to the deed of trust securing the loan, so the borrower pays it. That's almost always the buyer. Here's the math on a $320,000 loan:

($320,000 − $2,000) × 0.00115 = $365.70

If you carry a note for the buyer, this tax still applies. The bank isn't involved, but there's still recorded debt. A $100,000 seller-financed note owes $112.70, customarily paid by the buyer as obligor. If there are two notes, or a wraparound or "subject-to" deal, each instrument can be taxed differently. Refinances may be taxed only on new money borrowed. In any of these cases, get a written answer from the Tennessee Department of Revenue or a closing attorney.

Tennessee Closing Taxes and Fees Compared

Charge	Rate	Based on	Customarily paid by	Negotiable?
Transfer (recordation) tax	$0.37 per $100	Greater of price or fair market value	Buyer (grantee)	Yes, by contract
Mortgage (indebtedness) tax	$0.115 per $100 above $2,000	Loan amount	Buyer, as borrower	Seller can credit it, subject to lender caps
County recording fee	Per-page and per-document fees	Documents recorded	Whoever needs the document recorded; sellers often pay to record their old loan's release	Yes, by contract

Source: Tenn. Code Ann. §§ 67-4-409(a)–(b) and 8-21-1001; table by ResultsMLS.

On a $400,000 purchase with a $320,000 loan, the buyer's two taxes total $1,845.70.

When Your Number and the Closing Statement Don't Match

A gap of a few dollars usually comes from rounding or a clerk's add-on fee. A gap of hundreds usually means a different tax base or a missed loan. Check these in order:

1. The sale price on the Closing Disclosure matches your final amended contract.
2. The mortgage tax uses the buyer's actual loan, minus $2,000.
3. Any seller-financed note was or wasn't added, whichever is correct.
4. The oath of consideration figure matches what you expect. Ask the settlement agent to show it to you.

Get these figures in writing a few days before closing. That way there are no surprises at the closing table.

Put the Tax in Perspective

Even if you pay the entire transfer tax on a $400,000 sale, it's $1,480. A 2.5% to 3% listing commission on the same sale is $10,000 to $12,000.

Commission is usually the biggest cost you control. Since the 2024 NAR settlement, buyer-agent pay is negotiated separately more often, so look at each cost on its own line.

To be upfront: ResultsMLS sells flat-fee MLS listings, so we benefit from this comparison. A flat-fee listing puts your home on the MLS without a full listing commission. In exchange, you handle the showings, negotiations and paperwork yourself.

If that trade-off suits you, run your tax number above and compare it with the commission you'd save. Our flat fee MLS Tennessee guide explains the process. Our city pages cover Nashville, Franklin, Brentwood, Murfreesboro, Knoxville, Memphis, Chattanooga and Clarksville.

Frequently Asked Questions

Who pays transfer tax in Tennessee, buyer or seller?

The buyer customarily pays the $0.37 per $100 transfer tax, which is $1,110 on a $300,000 home. Your purchase agreement can shift all or part of it to the seller. (Tenn. Code Ann. § 67-4-409(a))

How do I calculate Tennessee transfer tax?

Multiply the greater of the sale price or the fair market value by 0.0037. A $400,000 sale owes $1,480. (Tenn. Code Ann. § 67-4-409(a))

Is there a mortgage tax in Tennessee?

Yes. It's $0.115 per $100 on the loan amount above $2,000, so a $320,000 loan owes $365.70. The borrowing buyer normally pays it. (Tenn. Code Ann. § 67-4-409(b))

Do I pay recordation tax on a cash sale?

Yes, the transfer tax still applies because a deed is recorded. The mortgage tax is $0 because there's no deed of trust. (Tenn. Code Ann. § 67-4-409(a)–(b))

Is a quitclaim deed between spouses taxed in Tennessee?

Some transfers between spouses, including certain transfers under a divorce decree, can be exempt. Whether yours qualifies depends on the facts. Confirm with your county Register of Deeds or a closing attorney before you record. (Tenn. Code Ann. § 67-4-409(a))

This is general information, not legal or tax advice. Check with your title company or closing attorney before you sign.