Georgia Intangible Tax Mortgage 2026: How It Is Calculated and When It Applies

Georgia imposes an intangible recording tax on all long-term real estate loans. The rate is $1.50 per $500 of the principal loan amount, which equals 0.30% of the loan. A $400,000 mortgage in Georgia carries a $1,200 intangible tax at closing. This is a borrower closing cost, paid to the county through the title company at the time of recording.

Loan Types Exempt From the Tax

• ✦FHA-insured loans are exempt from the Georgia intangible recording tax
• ✦VA-guaranteed loans are exempt
• ✦USDA-guaranteed loans are exempt
• ✦Short-term loans due in full within three years are exempt
• ✦Renewals and extensions of existing mortgages may qualify for a credit against prior tax paid

Refinance Credit Rule

When refinancing a Georgia mortgage, the borrower receives a credit for intangible tax already paid on the original loan. The credit applies to the portion of the new loan that does not exceed the unpaid balance of the original loan, provided the same lender or a subsequent holder refinances within three years of the original recording date. The net tax due on a refinance is often a fraction of the purchase transaction amount.

Common Errors on Loan Estimates

MLOs who do not close regularly in Georgia often omit the intangible tax entirely or confuse it with a real estate transfer tax. Georgia does not impose a real estate transfer tax on the buyer. The intangible tax applies to the mortgage instrument only. Always include it as a separate line item on the Loan Estimate or borrowers will come to the closing table short on cash.