transfer tax

Definition

A tax levied by state or local government when property ownership changes hands. It's the government's cut of your real estate transaction, because apparently they weren't getting enough already.

Example Usage

The transfer tax in our city is 1.5%, adding another $7,500 to our closing costs because freedom isn't free.

Origin

State and local taxation dating back to colonial stamp taxes

Fun Fact

Transfer tax rates vary wildly by location—some states have none, while others charge over 2%, making location matter even more.

Source: Real estate taxation terminology

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