Massachusetts Tax Stamps: Rates, Who Pays, and Exemptions

Massachusetts tax stamps are the state’s real estate transfer excise, charged at $4.56 per $1,000 of the sale price on any deed transferring property for more than $100.1Norfolk County Registry of Deeds. Fee Schedule – Excise Tax Barnstable County and the two island counties charge more. By custom the seller pays, and the Registry of Deeds will not record the deed until the full amount clears.2Middlesex South Registry of Deeds. Tax Stamps The nickname sticks because registries once affixed physical adhesive stamps to paper deeds as proof of payment.

How to Calculate the Stamps

The statewide rate is $2.28 per $500 of consideration, which is the same thing as $4.56 per $1,000.1Norfolk County Registry of Deeds. Fee Schedule – Excise Tax Before applying the rate, round the sale price up to the next $500 increment. A $350,201 sale is treated as $350,500. A $350,000 sale stays at $350,000 because it already lands on a $500 boundary.

  • $300,000 sale: 600 increments of $500 × $2.28 = $1,368
  • $500,000 sale: 1,000 increments × $2.28 = $2,280
  • $750,000 sale: 1,500 increments × $2.28 = $3,420

Higher Rates on the Cape and Islands

Three counties add costs that catch buyers and sellers off guard.

Barnstable County

Barnstable County adds a Cape Cod Open Space Land Acquisition Program surcharge that pushes the total excise to $6.48 per $1,000.3Barnstable County. Fee Schedule and Recording Procedures On a $500,000 sale, that comes to $3,240, roughly $960 more than the same transaction elsewhere in the state.

Nantucket County

Nantucket applies the standard $4.56 per $1,000 excise.4Nantucket, MA. Frequently Asked Questions The buyer separately owes a 2% transfer fee to the Nantucket Islands Land Bank on the full purchase price.5Nantucket Land Bank. Transfer FAQ On a $500,000 property, the Land Bank fee alone is $10,000. It dwarfs the excise and is the cost most Nantucket buyers underestimate.

Dukes County (Martha’s Vineyard)

Dukes County mirrors Nantucket’s structure. The standard excise applies, and every transfer, including long-term leases of 30 years or more, must clear the Martha’s Vineyard Land Bank and its 2% transfer fee before the registry will record the deed.6Dukes County Registry of Deeds. Martha’s Vineyard Land Bank

Assumed Mortgages Reduce the Taxable Amount

When a buyer takes over an existing mortgage rather than getting new financing, the assumed balance comes out of the sale price before the excise is calculated. The Department of Revenue treats any lien remaining on the property as a reduction to consideration, so only the portion above the mortgage is taxed.7Massachusetts Department of Revenue. Directive 88-18: Computation of Excise; Lien or Encumbrance

If a property sells for $400,000 and the buyer assumes a $150,000 mortgage, the taxable consideration is $250,000. Stamps at the standard rate come to $1,140 instead of the $1,824 the full price would produce. The same treatment applies when property transfers “subject to” a mortgage the buyer does not formally assume.

Who Pays

The statute says the tax is owed by “the person who makes or signs the deed, or for whose benefit the same is made or signed,” so either side could technically be liable.8General Court of Massachusetts. Massachusetts General Laws Chapter 64D In practice, Massachusetts custom puts the cost on the seller.2Middlesex South Registry of Deeds. Tax Stamps That is custom, not law. A purchase agreement can shift the obligation to the buyer or split it, and the registry will not care who writes the check as long as the full amount is paid.

When No Stamps Are Owed

Two categories of deeds are exempt from the excise:

Transfers where no money changes hands, such as a deed gifting property to a family member, do not trigger the excise either. That is not a formal exemption; the tax simply does not apply when consideration is $100 or less.9General Court of Massachusetts. Massachusetts General Laws Chapter 64D Section 1 Be careful with two situations: a deed reciting even nominal consideration above $100, and a transfer where the buyer assumes a mortgage. In both, the excise kicks in on that amount.

Paying at Recording

Payment happens at the Registry of Deeds for the county where the property sits. In-person filings typically require an attorney’s check or bank check made payable to the county registry, separate from the check for recording fees.1Norfolk County Registry of Deeds. Fee Schedule – Excise Tax Electronic filings run payment through the e-recording platform. Once the registry verifies payment, the clerk assigns a book and page number, and the deed becomes part of the public land record.

Communities that have adopted the Community Preservation Act charge a separate flat $20 surcharge on most recorded instruments, on top of the excise and recording fees.11Massachusetts Department of Revenue. TIR 00-12: Community Preservation Act Surcharges on Recorded and Registered Instruments Homestead declarations are excluded.

What Happens If You Underpay

Because the registry will not record without full payment, outright non-payment is rare. Underpayment is the usual problem: a math error or an incorrect consideration figure leads to a shortfall the Department of Revenue later catches.

The penalty runs 1% of the underpaid amount per month, capped at 25%. Interest accrues on top of that at the federal short-term rate plus four percentage points, compounded daily. The state adds a $30 charge each time it issues a demand for payment. Penalties can be waived if the shortfall came from a reasonable mistake rather than intentional neglect; interest cannot be waived under any circumstances.12Massachusetts Department of Revenue. Massachusetts Penalties and Interest Assessed by DOR

Check the arithmetic before closing. Round the consideration up to the next $500 boundary, multiply by $2.28 (or by the applicable Barnstable rate), and confirm the total with your closing attorney.