Deed Excise Tax / "Tax Stamps" Explained
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; DOR Registry of Deeds Indexing Standards; 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
Certain transfers are entirely free of deed excise under Massachusetts law. The tax is zero in these situations, though the standard Registry of Deeds recording fee still applies.
Consideration of $100 or less. Under M.G.L. c. 64D §1, a transfer where the stated price is $100 or less is not taxed. This covers nominal transfers such as gifts between family members recorded for $1.
Government party. Any deed where the Commonwealth of Massachusetts, a city or town, the federal government, or a government-sponsored entity such as Fannie Mae or Freddie Mac is a party is exempt under DOR guidance.
Divorce transfer. A transfer of property between spouses as part of a divorce proceeding is exempt under DOR guidance.
Partition with no excess value. When co-owners divide property and each receives exactly what they already owned, there is no taxable transfer of value. Only the excess — the amount one party receives beyond their original share — is taxed.
If you believe an exemption applies to your transaction, confirm it with your closing attorney before the recording date.
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. Common exemptions include transfers where the stated consideration is $100 or less, transfers involving a government entity, transfers between divorcing spouses, and partition transfers where no excess value changes hands. If you think an exemption applies, confirm it with your closing 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.