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The Massachusetts deed excise tax is a state charge imposed every time real property changes hands. The statewide rate is $4.56 per $1,000 of sale price — or $2.28 for each $500 increment — and by longstanding custom the seller pays it at closing. On a $750,000 North Shore home, that comes to $3,420 deducted from the seller’s proceeds before they leave the closing table.
How It Works in Massachusetts
The excise is governed by M.G.L. c. 64D. It applies to any deed, instrument, or writing that transfers an interest in real property when the consideration exceeds $100. The tax must be paid before the deed can be recorded at the Registry of Deeds — in practice, the closing attorney calculates the amount, includes it on the settlement statement, and remits it at recording.
The rate is applied to the sale price rounded up to the next $500 increment if the price is not already an exact multiple of $500. That rounding matters: a sale at $750,100 is taxed on $750,500, not $750,000.
Statewide rate (all Massachusetts counties except Barnstable): $2.28 per $500, which equals $4.56 per $1,000 of sale price.
Barnstable County rate (Cape Cod): $3.24 per $500, which equals $6.48 per $1,000. The higher rate reflects a county surcharge that funds water quality infrastructure on Cape Cod. This rate is confirmed by the Barnstable County Registry of Deeds fee schedule.
All North Shore towns are in Essex County and use the standard $4.56 per $1,000 rate.
Source: M.G.L. c. 64D §1; Massachusetts Deed Indexing Standards (published by the Registers of Deeds, not the Department of Revenue); Barnstable County Registry of Deeds fee schedule (capecod.gov). Last verified: 2026-08-07.
Why It Is Called “Tax Stamps”
The name is a holdover from when payment was evidenced by physical adhesive stamps affixed to the deed before recording — similar to postage stamps. Today the tax is paid electronically or by check, but the terminology persists in everyday practice. You will hear agents, attorneys, and sellers use “stamps,” “deed stamps,” and “excise stamps” interchangeably with “deed excise tax” and “transfer tax.” They all mean the same charge.
Who Pays It
Under M.G.L. c. 64D §2, the tax is legally owed by the person who makes or signs the deed — in a standard sale, that is the seller. By longstanding custom in Massachusetts, the seller pays. This is not a statutory requirement; the statute simply says the tax must be paid before the deed records. Buyers and sellers can negotiate a different allocation in the purchase and sale agreement, but deviation from seller-pays is unusual enough to warrant a conversation with your attorney.
The tax is typically deducted from the seller’s proceeds at closing and remitted by the closing attorney.
How to Calculate It: Worked Examples
The formula:
- Take the sale price.
- Round up to the next $500 increment if not already an exact multiple.
- Divide by $500.
- Multiply by $2.28.
| Sale Price | Rounded to | ÷ 500 | × $2.28 | Excise Due |
|---|---|---|---|---|
| $500,000 | $500,000 | 1,000 | × $2.28 | $2,280 |
| $650,000 | $650,000 | 1,300 | × $2.28 | $2,964 |
| $750,000 | $750,000 | 1,500 | × $2.28 | $3,420 |
| $850,100 | $850,500 | 1,701 | × $2.28 | $3,878.28 |
| $1,200,000 | $1,200,000 | 2,400 | × $2.28 | $5,472 |
These figures use the statewide Essex County rate of $4.56 per $1,000. All North Shore transactions use this rate.
Common Exemptions
Some transfers owe no deed excise, or less than a regular sale would. The standard Registry of Deeds recording fee still applies either way.
Gifts and transfers for $100 or less. No excise is due when the real consideration — what is actually paid or given for the property, not counting a mortgage that stays on it — is $100 or less, or when the property is a genuine gift (M.G.L. c. 64D §1; DOR Directive 89-16). Writing “$1” on the deed does not settle it: if money changes hands, or the person receiving the property pays off the owner’s mortgage, the excise is figured on that amount.
Government party. State law exempts any deed where the Commonwealth, a Massachusetts city or town, or the United States or one of their agencies is a party (M.G.L. c. 64D §1). Fannie Mae and Freddie Mac are not government agencies, but federal law exempts them from state taxes, so no excise is due on a deed from Fannie Mae or Freddie Mac — a foreclosed home they are selling, for example (DOR Directive 91-2).
Divorce transfers. Massachusetts law has no specific deed excise exemption for divorce, and the question is not settled. In practice, Registries of Deeds generally record a deed between spouses made under a divorce without tax stamps when the deed says so and lists the court and docket number (Massachusetts Deed Indexing Standards, Standard 16-4). But the Department of Revenue’s only published ruling on a spousal buyout applied the excise to the amount paid for the departing spouse’s share (DOR Letter Ruling 82-70), and how a buyout is paid for — cash, a refinance, or other marital assets — can change the answer. Have your attorney decide how the deed is written and whether stamps are needed.
Partition with no excess value. When co-owners divide property they own together and no one ends up with more than their existing share, no excise is due. If one co-owner receives more than their share in exchange for payment, excise is due on what is paid for the extra portion (DOR Directive 89-13).
If you believe an exemption applies to your transaction, confirm it with your closing attorney before the recording date. The exemption rules above were last checked against M.G.L. c. 64D and DOR guidance on September 15, 2026.
Where It Shows Up at Closing
On the seller’s side of the ALTA settlement statement (or HUD-1 in older transactions), the deed excise appears as a line-item deduction from proceeds. It is not a buyer’s closing cost in a standard Massachusetts transaction.
Because Massachusetts is an attorney-closing state — under REBA v. NREIS, 459 Mass. 512 (2011), the Supreme Judicial Court held that Massachusetts real estate closings require the substantive participation of an attorney, not merely a witness or notary — the closing attorney is responsible for calculating the correct excise amount, remitting the stamps, and ensuring the deed is properly recorded.
The North Shore Context
On the North Shore, where median sale prices in many towns run well above $700,000, the deed excise is a meaningful line item. A seller in Marblehead closing at $1,100,000 pays $5,016 in excise. A seller in Beverly closing at $650,000 pays $2,964. Neither figure is negotiable — the rate is set by state law — but knowing it in advance helps sellers plan their net proceeds accurately.
The excise is separate from and in addition to the property tax proration that also appears on the closing statement. See North Shore Property Tax Center for the full picture on annual tax bills by town.
FAQ
Who pays the deed excise tax in Massachusetts — buyer or seller?
By longstanding custom, the seller pays. M.G.L. c. 64D §2 makes the person who signs the deed legally responsible, which is the seller in a standard transaction. The tax is deducted from the seller’s proceeds at closing. Buyers and sellers can negotiate otherwise, but seller-pays is the overwhelming norm.
What is the deed excise rate on the North Shore?
All North Shore towns are in Essex County and use the statewide rate of $4.56 per $1,000 of sale price (or $2.28 per $500). The higher Barnstable County rate of $6.48 per $1,000 applies only to Cape Cod transactions.
Is the deed excise tax the same as a transfer tax?
Yes. “Deed excise,” “transfer tax,” “deed stamps,” and “tax stamps” all refer to the same charge under M.G.L. c. 64D. The different names reflect different eras and different speakers — attorneys tend to say “excise,” agents often say “stamps” — but the underlying obligation is identical.
Are there situations where no deed excise is owed?
Yes. No excise is due on genuine gifts or when the real consideration is $100 or less, on deeds where the Commonwealth, a Massachusetts city or town, or the federal government is a party, on sales by Fannie Mae or Freddie Mac, and on partitions where no one receives more than their share. Divorce transfers are often recorded without stamps, but the law is not settled, so confirm with your attorney before recording.
Does the deed excise apply to commercial property sales?
Yes. M.G.L. c. 64D applies to both residential and commercial real estate transfers. The rate is the same: $4.56 per $1,000 statewide. There is no separate commercial rate.