In a Massachusetts home sale, the seller pays the transfer tax. The state calls it the deeds excise tax, and Chapter 64D puts the legal obligation on the person who signs and delivers the deed. There is one geographic twist worth knowing up front: on Martha’s Vineyard and Nantucket, the buyer owes a separate 2% Land Bank fee on top of whatever the seller pays in excise.
The Seller’s Obligation Under State Law
Massachusetts General Laws Chapter 64D requires the grantor — the seller — to purchase and affix the excise stamps when the deed is recorded at the Registry of Deeds.1General Court of Massachusetts. Massachusetts General Laws Part I, Title IX, Chapter 64D, Section 1 A deed delivered without the required stamps exposes the signer to a penalty of up to $100.2Mass.gov. Directive 95-4: Enforcement of the Deeds Excise The Commonwealth looks to the seller for compliance, regardless of any side deal between the parties.
Can the Buyer Agree to Pay Instead?
Yes. Buyers and sellers can negotiate who actually writes the check as part of the purchase and sale agreement. A buyer may agree to cover the excise, or the parties may split it. That private allocation does not change who is legally responsible if the tax goes unpaid; the state still pursues the seller. In practice, the closing attorney deducts the excise from the seller’s proceeds before distributing funds, so most sellers never see a separate bill.
What the Seller Actually Pays
Across most of Massachusetts, the excise is $2.28 per $500 of consideration, which comes out to $4.56 per $1,000 of the sale price.3Mass.gov. Massachusetts Tax Rates On a $500,000 sale, that is $2,280.
Barnstable County charges more. The Barnstable Registry of Deeds assesses the excise at $6.48 per $1,000, roughly 42% above the standard rate, because of a county surcharge originally tied to the Cape Cod Open Space Land Acquisition Program.4Barnstable County. Fee Schedule and Recording Procedures A $500,000 sale on the Cape generates $3,240 in excise.
Two calculation details affect the final number:
- The consideration is rounded up to the nearest $500 before the rate is applied. A sale price of $546,300 is taxed on $546,500.5Dukes County Registry of Deeds. Tax Stamps
- If the buyer formally assumes an existing mortgage (or takes title subject to it), the remaining mortgage balance is subtracted from the sale price before the excise is calculated. A new loan from the buyer’s own lender does not qualify, even if it comes from the same bank that held the old mortgage. Because most residential sales involve a fresh mortgage, most sellers pay excise on the full price.6Massachusetts Department of Revenue. Directive 88-18: Computation of Excise; Lien or Encumbrance
What the Buyer Pays on Martha’s Vineyard and Nantucket
Dukes County and Nantucket County each impose a 2% Land Bank fee on real estate transfers, and that fee is the buyer’s responsibility.7Nantucket Islands Land Bank. Transfer FAQ On a $500,000 purchase, that is $10,000 out of the buyer’s pocket at closing — on top of the $2,280 excise the seller still owes.
Both counties exempt qualifying first-time homebuyers from part of the fee. As of January 2025, Nantucket exempts the first $1,200,000 of the purchase price for first-time buyers who qualify.7Nantucket Islands Land Bank. Transfer FAQ The Martha’s Vineyard Land Bank resets its own first-time buyer threshold each calendar year based on recent sales data.
When No One Owes the Tax
Certain transfers are exempt from the deeds excise entirely:
- Transfers where the consideration is $100 or less, which typically covers gift deeds and conveyances into a personal trust.1General Court of Massachusetts. Massachusetts General Laws Part I, Title IX, Chapter 64D, Section 1
- Deeds where the Commonwealth, a Massachusetts city or town, the United States, or any of their agencies is a party.1General Court of Massachusetts. Massachusetts General Laws Part I, Title IX, Chapter 64D, Section 1
- Mortgages and other instruments given only to secure a debt, since ownership is not changing hands.1General Court of Massachusetts. Massachusetts General Laws Part I, Title IX, Chapter 64D, Section 1
- Deeds transferred as part of a corporate merger, or from a subsidiary to its parent in exchange for cancellation of the subsidiary’s stock, where beneficial ownership does not change.8General Court of Massachusetts. Massachusetts General Laws Part I, Title IX, Chapter 61A, Section 12
To claim an exemption, the deed should state the nature of the consideration, such as “love and affection” or “$1.00.” The Registry can still ask for a dollar figure or a separate Statement of Consideration to confirm that no hidden purchase price exists.9Secretary of the Commonwealth of Massachusetts. Massachusetts Deed Indexing Standards January 1, 2025 – Section: Consideration on Deeds
How It Shows Up at Closing and on Your Taxes
At a typical Massachusetts closing, the attorney calculates the excise from the sale price, withholds it from the seller’s proceeds, and pays the registry when the deed is recorded. Sellers see the figure as a line item on their settlement statement rather than as a bill they handle themselves.
On a federal return, the excise is not deductible as a tax for the seller. It is treated as a selling expense that reduces the amount realized from the sale, which can in turn reduce taxable capital gain.10Internal Revenue Service. Selling Your Home Keep the settlement statement so your tax preparer can pick up the number when calculating gain or loss.