Tennessee Real Estate Transfer Tax

Figures verified November 12, 2026 against Tennessee Department of Revenue, realty transfer tax manual · Update log

Short answer

Tennessee's realty transfer tax is $0.37 per $100 (0.37%). In Tennessee the buyer (the grantee) pays, on the price or the value, whichever is greater. On a $500,000 home, it comes to about $1,850. An executor's deed handing an inherited house to an heir owes none.

Free calculator

Tennessee transfer tax calculator

Enter the sale price to see each tax, who pays it, and the total. Amounts like 650k or 2.5m work.

Sale price

Property

Tennessee

Transfer tax: $1,850 (0.37% of the price)

Tennessee realty transfer taxBuyer$1,850

Seller pays: $0
Buyer pays: $1,850

Giving the house to an heir instead of selling it? The executor's deed to an heir is exempt here. How it works in Tennessee

An estimate from the rates on our Tennessee page. The title company or closing attorney works out the final figure; recording fees and the agent's commission aren't included.

Tennessee transfer tax rates

Tax	Rate	Who pays
Tennessee realty transfer tax	$0.37 per $100 (0.37%)	Buyer

Who pays the transfer tax in Tennessee?

In Tennessee the buyer (the grantee) pays, on the price or the value, whichever is greater.

Whatever the custom, the purchase contract can shift the tax to the other side, so check it before you agree a price. The closing agent collects the tax from the sale money and pays it when the deed is recorded.

Selling an inherited house in Tennessee

An inherited house reaches the heirs in one of three ways, and the transfer tax depends on which:

The executor deeds the house to the heirs. An executor's deed that carries out a gift of the property in the will is exempt.
The house passes outside probate, to a surviving joint owner or under a transfer-on-death deed. There is no sale and no new deed from the estate, so no transfer tax; the new owner records a death certificate or affidavit.
The executor sells the house. When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

The heirs or the estate also owe income tax only on any rise in value after the death, because the house gets a stepped-up basis. The seller's transfer tax counts as a selling expense and lowers that gain. See what's left for each heir in the inherited house net proceeds calculator.

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The Executor's Final Tax Returns Kit

An estate pays 37% on income above $16,000. Paid out to the heirs on time, the same income is taxed at their rates, often 12%. The kit shows how, and is $49.

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Transfer taxes in other states

Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Pennsylvania · Rhode Island · South Carolina · South Dakota · Texas · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming

Or compare them all in the 50-state table.

Frequently asked questions

How much is the transfer tax in Tennessee?

Realty transfer tax: $0.37 per $100 (0.37%). On a $500,000 home, that comes to about $1,850 in total.

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

In Tennessee the buyer (the grantee) pays, on the price or the value, whichever is greater.

Do you pay transfer tax when you inherit a house in Tennessee?

An executor's deed that carries out a gift of the property in the will is exempt.

Does an estate pay transfer tax when it sells a house in Tennessee?

When the executor sells the house to an outside buyer, the transfer tax is due as on any sale. The estate pays the seller's share out of the sale proceeds, and the closing agent usually collects it.

Is transfer tax deductible?

Not as a tax deduction, but the seller's share counts as a selling expense: it lowers the amount realized, and so the taxable gain on the sale. The buyer's share is added to the buyer's cost basis.

Sources

1.Tennessee Department of Revenue, realty transfer tax manualtn.gov

This information is provided for educational purposes only and should not be considered legal or tax advice. Consult a qualified tax professional for guidance specific to your situation.