State Mortgage Tax 2026: Intangible Tax and Recording Tax by State

Most states impose some form of tax or fee at mortgage recording. The amount, name, and calculation method vary widely. MLOs closing across state lines need to build these costs into loan estimates accurately or borrowers may face cash-to-close shortfalls at the table.

Key State-by-State Rates

• ✦New York: 0.50% on loans under $500,000; 1.05% at or above that threshold for residential, plus additional New York City mortgage recording tax
• ✦Florida: 0.35% documentary stamp tax on the note amount
• ✦Georgia: $1.50 per $500 of principal, which equals 0.30% of the loan amount
• ✦Alabama: 0.15% on the principal amount
• ✦Maryland: county-specific rates ranging from 0.50% to 1.00%

Who Pays and When

In most states, mortgage recording tax is a buyer expense collected at closing and remitted by the title company to the county when the mortgage is recorded. In New York City, the combined real estate transfer tax and mortgage recording tax can add 2% or more to closing costs on a purchase. These amounts must appear as individual line items on the Loan Estimate and Closing Disclosure.

Refinance Treatment

Some states provide credits or exemptions for refinances within a specified period. Georgia exempts the portion of a refinance loan that does not exceed the original unpaid balance if the intangible tax was paid on the original loan within the last three years. Verify refinance treatment with the title company for each state before finalizing loan estimates on refinance files.