How does NC's excise (transfer) tax work on a real estate sale?
Quick answer
NC's state excise tax on real estate conveyances is $1.00 per $500 of consideration (or fractional part thereof) — equivalent to $2.00 per $1,000 of sale price. Per NCGS § 105-228.30, the transferor (seller) pays the tax to the county Register of Deeds before the deed is recorded — though by negotiation, the buyer can agree to cover it in a soft market.
WNC counties (Macon, Jackson, Swain, Haywood, Henderson, Buncombe, Transylvania, etc.) charge only the state rate — no additional local land transfer tax. Seven coastal/northeastern NC counties (Camden, Chowan, Currituck, Dare, Pasquotank, Perquimans, Washington) levy an additional local land transfer tax on top of the state rate; WNC buyers don't encounter this.
NC's excise tax — sometimes called the "revenue stamps" tax in older language — is a state tax on every real estate conveyance recorded with a county Register of Deeds. The mechanics are simple but worth knowing before closing.
The math at typical WNC price points
| Sale price | NC state excise tax |
|---|---|
| $200,000 | $400.00 |
| $300,000 | $600.00 |
| $400,000 | $800.00 |
| $500,000 | $1,000.00 |
| $750,000 | $1,500.00 |
| $1,000,000 | $2,000.00 |
| $2,500,000 | $5,000.00 |
The tax is calculated on the sale price; any fractional $500 rounds up. (A $250,750 sale pays $501.50 in state excise tax — $1.00 per $500 × 501.5 units.)
Who actually pays — statute vs. practice
Per NCGS § 105-228.30(a), "the transferor must pay the tax." In practice, the seller almost always pays the excise tax at closing in NC. However:
- Contract negotiation can shift this. In slow markets or competitive buyer-side bids, the buyer can offer to pay the excise tax as a concession.
- The HUD-1 / Closing Disclosure records the actual party who paid at closing, even if state law nominally assigns the obligation to the seller.
- Foreclosure, gift, and inheritance transfers have separate rules — see NCGS § 105-228.29 for the full list of exemptions (gifts, certain corporate restructurings, federal/state government transactions, etc.).
The 7 NC counties with additional local land transfer tax
Per NC statute, only 7 NC counties have authority to levy an additional local land transfer tax on top of the state rate. None are in the WNC mountain region:
- Camden County
- Chowan County
- Currituck County
- Dare County (Outer Banks)
- Pasquotank County
- Perquimans County
- Washington County
If you're buying in any of those counties, factor in the local rate (typically 1% of consideration) on top of the state's $1/$500. For all WNC counties (Macon, Jackson, Swain, Haywood, Madison, Buncombe, Henderson, Transylvania, Polk, Yancey, Avery, Mitchell, Watauga, Cherokee, Clay, Graham), only the state $1/$500 applies.
How excise tax compares to other US states
NC's excise tax structure is among the more modest in the US for real estate transfer taxes. Some states have no transfer tax at all (Alaska, Idaho, Indiana, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Texas, Utah, Wyoming). Others charge meaningfully more — Delaware charges 4%, New York City has its own additional Mansion Tax, etc.
For a Florida-to-NC buyer: Florida has a documentary stamp tax on deeds of $0.70 per $100 (effectively $7 per $1,000) — substantially higher than NC's $2 per $1,000. The NC excise tax line item is usually a pleasant surprise to FL buyers reading their first NC Closing Disclosure.
Authoritative sources
Want help estimating WNC closing costs on a specific property? Text CLOSE + the property address (or just the price point) to (828) 371-6980. — Brandi Rininger, eXp Realty