Who Pays the Recordation Tax in Sumner County, TN: the Buyer or the Seller?

In Tennessee, the buyer pays the Recordation Tax, not the seller. It's officially called the Realty Transfer Tax, it runs $0.37 per $100 of a home's sale price, and Tennessee law puts the responsibility on the grantee, meaning the person receiving the deed. On a $350,000 home in Sumner County, that's about $1,295, due at closing along with your other buyer closing costs.

This one trips up almost everyone at least once, buyers and sellers both. In a lot of states, the seller pays the transfer tax when a house changes hands. Tennessee flips that. If you've bought or sold somewhere else before moving here, this is exactly the kind of detail that catches people off guard on their closing disclosure.

What the Recordation Tax Actually Is

Tennessee's Recordation Tax is really two separate taxes that show up on the same closing statement, and they're easy to mix up.

• Realty Transfer Tax — $0.37 per $100 of the sale price, paid to record the deed itself. This is the one people usually mean when they say "Recordation Tax."

• Indebtedness Tax — a separate 11.5 cents per $100 of your loan amount, paid when your mortgage or deed of trust is recorded. This one applies to whoever is borrowing money, so it's a buyer-side cost tied to financing, not the sale price itself.

Both are set by the state and collected by the title company at closing, along with your other recording fees. Neither one is negotiable or waivable, they're a fixed cost of the transaction.

Why the Buyer Pays It, Not the Seller

Tennessee law is specific here. The person responsible for the Realty Transfer Tax is the grantee, the buyer, because that's the party who's recording the deed and taking ownership. If you're selling and someone tells you to budget for "transfer tax," that's not accurate in Tennessee. Your closing costs as a seller run toward the capital gains and closing-cost side of the ledger, not this one.

That said, everything in a real estate contract is technically negotiable between the parties. It's not unheard of for a seller to agree to cover a buyer's closing costs, including this tax, as part of a broader concession. But the default, the number the state actually bills, lands on the buyer.

What It Actually Costs in Sumner County

The math is simple once you know the rate: divide the sale price by 100, then multiply by $0.37.

• $275,000 home: about $1,017.50

• $350,000 home: about $1,295.00

• $425,000 home: about $1,572.50

• $500,000 home: about $1,850.00

If you're financing, add the Indebtedness Tax on top, based on your loan amount rather than the purchase price. A buyer putting 10% down on a $350,000 home is financing roughly $315,000, which adds another $362.25 at 11.5 cents per $100.

Neither of these is the biggest number on your closing statement, but they're real, they're fixed, and they're easy to forget when you're budgeting for a home in the $275,000 to $500,000 range where every few hundred dollars gets weighed against a down payment or an inspection contingency.

Why This Surprises So Many Buyers

If you're relocating to Sumner County from a state where the seller customarily covers transfer tax, this is one of the first "wait, really?" moments in the Tennessee closing process. States handle this differently. Some split it between both parties, some default to the seller, and Tennessee defaults to the buyer. None of that is negotiable at the state level, it's simply how the law is written here.

The practical effect is that your total buyer-side closing costs in Tennessee tend to run a little higher than what out-of-state buyers expect, while sellers often end up pleasantly surprised that this particular fee isn't on their side of the ledger at all. Neither side is getting a bad deal, it's just a different split than what you may have budgeted for based on experience elsewhere.

Where This Fits Into Your Closing Costs

The Recordation Tax is one line item among several. If you're a buyer, it sits alongside your title company fees, title insurance, appraisal, and lender charges, generally landing somewhere between 2% and 5% of your purchase price all in. If you're a seller, it doesn't touch your side of the settlement statement at all, but you'll want to know the Tennessee Residential Property Disclosure Form requirements and your own closing costs, which run in a different direction entirely.

I walk every buyer through a full closing cost estimate before we write an offer, specifically so numbers like this one don't show up as a surprise the week of closing. It's a small line item, but it's exactly the kind of thing that's better to know about in month one of your search than in the final week.

Frequently Asked Questions

Does the seller ever pay the Recordation Tax in Tennessee?

Not under the state's default rule. Tennessee law assigns the Realty Transfer Tax to the grantee, or buyer. A seller could agree to cover it as part of a negotiated concession, but that would be an exception written into the contract, not the standard arrangement.

Is the Recordation Tax the same as property tax?

No. The Recordation Tax is a one-time fee paid at closing to record the deed and, if applicable, the mortgage. Property tax is a separate, ongoing annual tax based on your home's assessed value in Sumner County.

How much is the Recordation Tax on a typical Gallatin home?

At $0.37 per $100 of sale price, a $350,000 home costs about $1,295 in Realty Transfer Tax. Add the Indebtedness Tax if you're financing, calculated at 11.5 cents per $100 of your loan amount.

Who actually collects the Recordation Tax?

The title company collects it at closing, along with other state and county recording fees, and remits it to the Register of Deeds when the documents are recorded.

Can the Recordation Tax be rolled into my mortgage?

Typically no, it's paid as part of your cash to close rather than financed, since it's a recording fee rather than part of the purchase price itself. Your lender's loan estimate will show it as a separate closing cost line.

If you want help estimating your full closing costs before you write an offer or list your home, grab a free 30-minute call with The Uhls-Kaelin Team, no pressure, just answers. Book a time at calendly.com/melodykaelinrealtor/30min, or call or text Melody at 270-535-9273 or Rickie at 615-305-6670.

About Melody Kaelin Uhls & Rickie Uhls Melody Kaelin Uhls and Rickie Uhls are the REALTORS® behind The Uhls-Kaelin Team with Hearthstone Realty, serving buyers and sellers across Sumner, Macon, Wilson, and Trousdale Counties, including Gallatin, Hendersonville, Portland, Lafayette, Lebanon, Westmoreland, and surrounding communities. Known for their education-focused, relationship-driven approach, they help clients navigate real estate decisions with confidence.

The Uhls-Kaelin Team | Hearthstone Realty 📞 Melody: 270-535-9273 📞 Rickie: 615-305-6670 📧 melodykaelinrealtor@gmail.com 📧 ruhls07@live.com 🌐 nashvilleareapropertyfinder.com