Closing day moves fast, and two small line items can cause big questions: Georgia’s transfer tax and the intangible recording tax. If you’re buying or selling in Cumming, you want a clear picture of what they are, who pays them, and how they’re calculated so your net number isn’t a surprise. In this guide, you’ll learn the essentials, see real Cumming examples, and get a simple checklist to keep your closing smooth. Let’s dive in.
Real estate transfer tax (RETT)
The real estate transfer tax is a state excise tax on the transfer of property. It’s typically paid when the deed is recorded using the PT‑61 filing. The tax is computed as $1 for the first $1,000 of the purchase price and $0.10 for each additional $100, which works out to roughly 0.1% of the sale price. You file and pay it through the PT‑61 system before the deed is recorded in Forsyth County. PT‑61 guidance explains the calculation and process.
Who usually pays? The person executing the deed pays the tax, which is commonly the seller unless the contract says otherwise. You’ll see the RETT as a separate line on the closing statement. See PT‑61 guidance for who pays.
Intangible recording tax (IRT)
The intangible recording tax applies when a long‑term loan is secured by a mortgage or security deed. The tax is based on the face amount of the loan, not the sales price. Georgia sets the rate at $1.50 for each $500 of the loan amount, which equals 0.3% using the rounding rule. There’s also a cap: no single security instrument owes more than $25,000 in IRT. Georgia’s rule outlines the rate, rounding, timing, and cap.
Who usually pays? By law, the holder of the note is responsible, but the tax may be passed to you by contract, so borrowers often see it as a closing cost when their mortgage is recorded. The statute addresses responsibility for payment. The instrument should be recorded and the tax paid within 90 days of execution. See Georgia’s administrative rule for timing.
Costs in Cumming: quick examples
Here are ballpark figures that follow Georgia’s formulas. Your closing attorney will compute the exact amounts.
- Cash purchase at $350,000: RETT is about $350. There is no IRT because no loan is recorded. PT‑61 explains RETT math.
- Purchase at $350,000 with a $280,000 mortgage: RETT is about $350. IRT is $1.50 per $500 of the loan: 280,000 ÷ 500 = 560 units × $1.50 = $840. Georgia’s rule confirms the IRT rate.
- Very large loan, $10,000,000: The raw IRT would compute to $30,000, but the tax is capped at $25,000 per instrument. Cap is in the Georgia rule.
Remember, Forsyth County’s deed recording fee is a separate local fee. The published charge for recording a deed is $25, which shows up as its own line item. See Forsyth’s current court costs and recording fees.
Filing, payments, and Forsyth steps
Forsyth County uses the statewide PT‑61 e‑filing system for RETT. The Clerk will not record a deed without the PT‑61 certification. Review PT‑61 filing guidance. For payments, Forsyth asks for separate checks or payments for three items: the county recording fee, the transfer tax, and the intangible tax if a mortgage is recorded. The office also accepts major credit cards with a convenience fee. See the Forsyth Clerk’s Real Estate FAQ.
What to expect on your closing statement in Cumming:
- RETT, calculated through the PT‑61 system.
- IRT, if a mortgage or security deed is recorded.
- County recording fee, typically $25 per deed in Forsyth.
For office links and land records access, use the Forsyth Clerk’s Real Estate page.
Refinances and common exemptions
Refinancing? Georgia allows an exemption on the portion of a new security instrument that refinances unpaid principal of a previously recorded loan if the earlier IRT was paid and the new instrument or an affidavit clearly identifies the refinanced amount. In that case, IRT is only due on any new money. Your lender and closing attorney must document the split to claim the exemption. See the refinance rule in O.C.G.A. §48‑6‑65.
Certain entities and instruments are exempt under Georgia law, and IRT applies only to long‑term notes secured by the instrument. For the full list and nuances, review Georgia’s administrative rule.
Closing checklist for Forsyth County
Use this quick list to keep your Cumming closing on track:
- Confirm in your contract who will pay the RETT and prepare the PT‑61 accordingly. PT‑61 guidance
- If you’re recording a mortgage, estimate IRT at $1.50 per $500 of the loan amount and apply the rounding rule. Georgia rule
- If refinancing, ensure documents state the refinanced principal and that prior IRT was paid to avoid duplicate tax. Refinance exemption
- Prepare separate payments for the Forsyth recording fee, RETT, and IRT. Forsyth fees
- E‑file the PT‑61 before submitting the deed for recording to prevent delays. PT‑61 guidance
Avoid common mistakes
A few preventable snags tend to slow closings:
- Waiting to file PT‑61, which can delay deed recording. PT‑61 guidance
- Miscalculating IRT by forgetting the per‑$500 rounding or the $25,000 cap. Georgia rule
- Combining payments instead of providing separate checks for Forsyth’s taxes and fees. Forsyth Real Estate FAQ
If you want a clear, customized net sheet and a step‑by‑step plan for your purchase or sale in Cumming, reach out to Gretchen Lennon. We’ll help you understand every line item so you can move forward with confidence.
FAQs
What is Georgia’s real estate transfer tax for a Cumming home sale?
- It’s a state tax on the property transfer, computed as $1 for the first $1,000 of price and $0.10 for each additional $100, roughly 0.1% of the sale price, paid via PT‑61 before recording. See PT‑61 guidance
Who pays the intangible recording tax on a Georgia mortgage?
- By statute the note holder is responsible, but the cost is often passed to the borrower by contract and collected at closing when the security deed is recorded. See O.C.G.A. §48‑6‑61
How do I calculate Georgia’s intangible tax on my loan?
- Multiply the loan amount by 0.3% using $1.50 per $500 increments, rounding up to the next $500 if needed, and apply the $25,000 cap per instrument. See Georgia’s rule
Are transfer and intangible taxes included in Forsyth County recording fees?
- No. The $25 deed recording fee is separate. Forsyth requires separate payments for the recording fee, RETT, and IRT. See Forsyth fees
What happens if PT‑61 isn’t filed for a Cumming closing?
- The Clerk will not record the deed until the PT‑61 is filed and the transfer tax is paid, which can delay your closing. PT‑61 guidance
How can I avoid paying intangible tax twice on a refinance in Georgia?
- Ensure the new instrument or an affidavit states the refinanced unpaid principal and confirm prior IRT was paid, so tax applies only to new money. See O.C.G.A. §48‑6‑65
