Tennessee Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers

Tennessee charges a realty transfer tax of $0.37 per $100, or 0.37%, based on the greater of the price or the property’s value. The Department of Revenue says the grantee, meaning the buyer, is responsible for paying it. Sellers still budget for commission, loan payoff, prorated property taxes and title and escrow fees.

Tennessee puts a small transfer tax on the buyer’s side

Most sellers brace for a big transfer tax line at the closing table. In Tennessee it is smaller than in many states, and the state’s own guidance points it at the buyer.

Tennessee calls it a recordation tax. According to the Tennessee Department of Revenue’s Recordation Tax Manual (March 2023 edition), the realty transfer tax is $0.37 per $100 for the privilege of publicly recording documents that evidence transfers of real estate. The tax is generally based on the greater of the consideration paid or the value of the property. The manual defines value as the amount the property would command at a fair and voluntary sale.

On who pays, the manual is direct: the grantee or transferee shown on the instrument is responsible for paying the realty transfer tax. In a standard sale, that is the buyer. The county register of deeds collects the tax when the deed is offered for recording.

Item	What the Department of Revenue says
Realty transfer tax rate	$0.37 per $100 (0.37%)
Tax base	Greater of consideration paid or value of the property
Responsible party	Grantee or transferee shown on the instrument
Collected by	Register of deeds in the county where the instrument is recorded
Not subject to the tax (examples)	Leasehold transfers, domestic settlement decrees, transfers into a revocable living trust by the same transferor

A separate indebtedness tax applies to recording debt instruments. It is its own tax with its own rules, so it does not change the transfer tax math on the deed.

Worked example: a hypothetical $300,000 sale

Assume the price and the property’s value are both $300,000.

$300,000 divided by $100 = 3,000 units
3,000 x $0.37 = $1,110 realty transfer tax

Under the Department of Revenue’s guidance the buyer is responsible for that $1,110, so the seller’s transfer tax line is $0 unless the contract shifts it. If a contract did move it to the seller, the cost would be the same $1,110. Read the closing cost clause in your agreement before you assume either way, and ask your title company what is customary locally.

The other costs a Tennessee seller should plan for

The transfer tax is only part of the picture. Plan for these, and get actual numbers from your title company:

Agent commission. Negotiable. On a listed sale it is usually the largest line.
Mortgage payoff. Your remaining balance plus interest through the payoff date, and any payoff fees from the lender.
Prorated property taxes. Taxes are split between buyer and seller at closing based on who owns the home for how much of the tax period. The split follows your contract.
Title, escrow and settlement fees. These vary by company and county. Who pays which fee is set by your purchase contract.
Recording fees. Your closing agent can quote the county register of deeds charges.
Title insurance. The premium varies. This guide did not source a Tennessee rate schedule, so ask your title company for a quote.
Repairs and credits. Whatever you agree to after inspection.

What this means if you flip or wholesale in Tennessee

The tax follows the deed, so a flipper sees it at both ends. When you buy, you are the grantee, so under the Department of Revenue’s guidance the 0.37% is yours. On a $200,000 purchase that is $740 (2,000 x $0.37). When you sell, your end buyer is the grantee, so the tax on your exit is theirs to pay, but it still shows up in what your buyer can afford to offer.

For wholesalers, the choice between an assignment and a double close changes how many times the tax applies. An assignment usually means one deed from the original seller to your end buyer, so there is one recorded transfer. A double close means two closings and two sets of costs: you take title as the grantee on the first deed, and your end buyer is the grantee on the second. Whether your assignment fee counts toward the taxable consideration is a question for your title company.

Building it into your maximum allowable offer is simple:

Start from your after-repair value and subtract repairs, holding costs, your profit target and your selling costs.
Subtract 0.37% of your purchase price for the transfer tax you will owe as the grantee.
Subtract the title, escrow and recording fees on both closings if you double close.

A $740 line on a $200,000 buy is small, but it is the kind of line that disappears on a thin deal if you leave it out.

Run your numbers

Automize CRM has a free closing cost calculator you can use to build these line items into an offer.

This guide is general information, not tax or legal advice. Confirm your exact figures with your title company or closing attorney.

Sources

Rates checked October 24, 2026. General information, not tax or legal advice.

Common questions

What is the transfer tax rate in Tennessee?

Tennessee imposes a realty transfer tax of $0.37 per $100, which is 0.37%, for the privilege of publicly recording a document that transfers real estate. The tax base is generally the greater of the consideration paid or the value of the property. The county register of deeds collects it when the deed is recorded.

Who pays the Tennessee transfer tax, the buyer or the seller?

The Tennessee Department of Revenue’s Recordation Tax Manual says the grantee or transferee shown on the instrument is responsible for paying the realty transfer tax. That makes the buyer the responsible party on a standard sale. Your purchase contract can still allocate closing costs differently, so check it and ask your title company.

Are any Tennessee transfers exempt from the realty transfer tax?

Yes. The Department of Revenue’s manual lists transfers that are not subject to the tax, including transfers of a leasehold estate, domestic settlement decrees, and transfers into a revocable living trust by the same transferor. Each exemption has conditions, and the instrument must cite the exemption, so ask your title company before assuming one applies.

Does Tennessee also tax the mortgage when a house sells?

Tennessee’s recordation tax has a second part, an indebtedness tax on the privilege of publicly recording debt instruments. That is separate from the realty transfer tax on the deed. It matters mostly to the buyer’s financing, but ask your closing agent which recording taxes apply to each document in your deal.