Virginia Grantor Tax, Recordation Tax and Regional Fees: Who Pays What
Daniel ParkNo. 146
Key takeaways
- In Northern Virginia, sellers typically pay the state grantor tax plus two regional transportation fees, which together come to about 0.30% of the sale price.
- Buyers typically pay recordation tax on both the deed and the deed of trust: the state rate of $0.25 per $100 plus a local tax equal to one-third of that, about 0.333% in total on each.
- Recordation tax is based on the greater of the price or the property’s assessed value, so a below-assessment sale doesn’t lower it.
- Gifts, divorce transfers, transfers into a revocable living trust and deeds of distribution are among the recordation tax exemptions in Virginia law.
- Your contract decides who pays in your deal, so check it, and have your settlement attorney or title company confirm the final figures.
In a typical Northern Virginia sale, the seller pays the Virginia grantor tax ($1 per $1,000 of price) plus a regional congestion relief fee and a regional WMATA capital fee ($1 per $1,000 each), for a total of about 0.30% of the price. The buyer pays the state and local recordation taxes, roughly 0.333% of the purchase price on the deed and another 0.333% of the loan amount on the deed of trust. Here is how each tax works, where it comes from in Virginia law, and how to estimate it for your own deal.
The seller side: grantor tax and two regional fees
State grantor tax
Under Va. Code § 58.1-802, the grantor (the seller) pays 50 cents for each $500 of value, which equals $1 per $1,000, or 0.10%. It is based on the greater of the price or the property’s value, but it excludes any loan that stays on the property, such as a mortgage the buyer assumes. The statute lets buyer and seller agree to shift it, but in our market the seller usually pays.
Regional WMATA capital fee
Va. Code § 58.1-802.3 adds a fee of $0.10 per $100 on deeds for property in localities that belong to the Northern Virginia Transportation Authority. That group includes Arlington, Fairfax, Loudoun and Prince William counties and the cities of Alexandria, Fairfax, Falls Church, Manassas and Manassas Park. The money supports Metro’s capital needs.
Regional congestion relief fee
Va. Code § 58.1-802.4, added in 2020, imposes another $0.10 per $100 on the grantor in qualifying planning districts, and Northern Virginia’s Planning District 8 is one of them. Like the grantor tax, both regional fees are calculated on the price or value, excluding assumed liens.
You may still see older articles describe a 15-cent Northern Virginia congestion fee under § 58.1-802.2. That section was repealed in 2018, and the current structure is the two 10-cent fees above.
The buyer side: recordation taxes on the deed and the loan
Va. Code § 58.1-801 sets the state recordation tax on deeds at 25 cents per $100, applied to the greater of the price or the property’s actual value, which for this purpose is the most recent tax assessment. Section 58.1-803 applies the same 25-cent rate to the deed of trust that secures your mortgage, based on the loan amount. Localities can add their own recordation tax equal to one-third of the state tax, and Northern Virginia counties and cities levy it, which works out to about 8.33 cents per $100.
So a financed buyer pays recordation twice: once on the deed and once on the deed of trust. Cash buyers pay only the deed portion.
Quick reference table
| Tax or fee | Rate | Based on | Usually paid by |
|---|---|---|---|
| State grantor tax | $0.50 per $500 (0.10%) | Price or value, excluding assumed loans | Seller |
| Regional WMATA capital fee | $0.10 per $100 (0.10%) | Same as grantor tax | Seller |
| Regional congestion relief fee | $0.10 per $100 (0.10%) | Same as grantor tax | Seller |
| State recordation tax, deed | $0.25 per $100 (0.25%) | Greater of price or assessed value | Buyer |
| Local recordation tax, deed | One-third of state (about 0.0833%) | Same as state | Buyer |
| State recordation tax, deed of trust | $0.25 per $100 (0.25%) | Loan amount | Buyer |
| Local recordation tax, deed of trust | One-third of state (about 0.0833%) | Loan amount | Buyer |
Clerks of court also charge modest recording and processing fees for each document. They are small compared with the taxes, but your settlement statement will list them.
A worked example
Illustrative numbers. A Fairfax County townhouse sells for $700,000. The buyer finances $560,000. The current assessment is $680,000, so the price is the higher figure.
| Item | Calculation | Amount |
|---|---|---|
| Grantor tax (seller) | $700,000 × 0.10% | $700 |
| WMATA capital fee (seller) | $700,000 × 0.10% | $700 |
| Congestion relief fee (seller) | $700,000 × 0.10% | $700 |
| Seller total | $2,100 | |
| State recordation on deed (buyer) | $700,000 × 0.25% | $1,750 |
| Local recordation on deed (buyer) | $1,750 ÷ 3 | $583 |
| State recordation on deed of trust (buyer) | $560,000 × 0.25% | $1,400 |
| Local recordation on deed of trust (buyer) | $1,400 ÷ 3 | $467 |
| Buyer total | $4,200 |
If the same home had sold for $660,000, below the $680,000 assessment, the deed recordation tax would be figured on $680,000 instead. Actual figures round up to the next $100 or $500 increment, so your settlement statement may differ by a few dollars.
Exemptions and special cases
Virginia’s exemption list in § 58.1-811 is long. The ones homeowners run into most:
- Deeds of gift with no consideration, such as a parent adding a child to title, when the deed states it is a gift.
- Transfers incident to divorce or separation under a decree or written agreement.
- Transfers into a revocable living trust when the grantors and beneficiaries are the same and nothing is paid.
- Deeds of distribution from an estate or trust to beneficiaries; my guide to selling an inherited home covers that process.
- Refinances: a reduced state rate can apply to a deed of trust that refinances a debt on which recordation tax was already paid, under § 58.1-803.
Whether a particular transfer qualifies depends on the facts and the deed wording, so have a Virginia real estate attorney review it.
Common mistakes
- Estimating buyer costs on the price only and forgetting the deed of trust tax.
- Assuming a sale below assessment lowers the recordation tax.
- Relying on older articles that still cite the repealed 15-cent fee.
- Forgetting that an assumed mortgage reduces the grantor-side base but not the deed recordation base.
- Negotiating a seller credit without accounting for lender limits on credits.
For the full picture, see what sellers pay at closing, what buyers pay at closing and how seller net proceeds are calculated.
Daniel’s tip: When I prepare a seller net sheet or a buyer cost estimate, I calculate these taxes on the higher of the price or the assessment from day one. It avoids the most common surprise on a Virginia settlement statement.
Want to see your own numbers? Run a quick estimate, then I’ll walk through it with you line by line.
Frequently asked questions
Who pays grantor tax in Virginia, buyer or seller?
By statute the grantor, meaning the seller, pays it unless the parties agree otherwise. In Northern Virginia contracts the seller customarily pays the grantor tax and both regional fees.
How much is recordation tax in Northern Virginia?
The state rate is $0.25 per $100 and local governments add one-third of that, for about 0.333% in total. Financed buyers pay it on both the deed and the loan amount.
Is there a recordation tax on a refinance in Virginia?
Yes, a new deed of trust is taxed, but a reduced state rate can apply when refinancing debt that was already taxed. Your lender or settlement agent will show the amount on your loan estimate.
Do I pay recordation tax on the purchase price or the assessed value?
On the greater of the two. If you buy below the current assessment, the deed tax is based on the assessment.
Filed under Money & Mortgages
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