Understanding Hamilton County’s Transfer Tax: A Quick Guide
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
Did you know that there is a Hamilton County transfer tax? Suppose you are preparing to sell your Hamilton County property. In that case, you’ll need to be aware of the full scope of your closing costs, and transfer taxes, while often overlooked, are an important part of a real estate transaction’s endgame and can have a significant impact on your bottom line.
Not to worry. This guide will explain how the Hamilton County transfer tax works — how much it costs, who is liable for paying it, and any exemptions that might apply.
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What are transfer taxes?
Real estate transfer taxes are charged by state or local governments when property ownership is transferred from one individual to another.
According to the Federal Trade Commission, these taxes are due when the title of a property, the document that verifies your legal ownership, is officially transferred to a new owner.
The amount owed in transfer taxes can vary significantly based on the property’s location, as different states, counties, and cities often have their own rates and regulations. Transfer taxes primarily serve as a revenue source for local and state governments, funding various public services and infrastructure projects.
Who pays for transfer taxes?
Sellers are responsible for paying transfer taxes in Ohio and Hamilton County.
What are the types of transfer taxes?
Ohio considers its real estate transfer tax a conveyance fee, which is similar to transfer taxes in other jurisdictions. Ohio’s conveyance fee is $1.00 for each $1,000 of the real estate’s value, typically based on the purchase price of the transferred property.
State transfer taxes
The conveyance fee has two parts. Statewide, it is calculated using a “mill levy” at a rate of one mill per $1,000 of the value of property sold or transferred, which applies in all 88 of Ohio’s counties. One mill is equal to $1.00.
Property is levied based on the property’s assessed value, not its appraised value. The assessed value is 35% of the property’s appraised value.
County transfer taxes
Hamilton County’s transfer tax liability is divided into multiple parts: a transfer fee and a conveyance and permissive fee. These are levied on top of the statewide conveyance fee.
The conveyance and permissive fee rate is $3.00 per $1,000 of the property’s sales price. The transfer fee is $0.50 per parcel on the document.
Thankfully, Hamilton County has a handy calculator tool available on the Hamilton County Auditor’s website.
For example, for a single property sold at $100,000, the total fees due would be $300.50. This is $0.50 for the transfer fee, $100 for the conveyance fee, and $200 for the permissive fee.
Other transfer fees
Beyond transfer taxes, there might be additional fees to consider, such as those from a homeowner’s association or local neighborhood organization. Since these can vary widely based on location, consulting a professional is advisable.
If you’re selling your home without a realtor, seeking professional advice can clarify some of the nuances of the process and provide a clearer picture of what to expect regarding the pros and cons of selling a house without a realtor.
Are transfer taxes deductible?
Transfer taxes are, unfortunately, not eligible for tax deduction.
However, you might be able to lower the amount you pay in capital gains taxes.
Capital gains, defined as the profit obtained from the sale of your home or the financial gain from selling your property, are subject to federal taxation just like profits from the sale of other assets.
Sellers have the option to treat paid transfer taxes as selling costs, allowing them to subtract these from their home’s closing sale price, according to the IRS. By doing so, sellers can lower the capital gains taxes owed on any profit they earn from the sale of their home.
Hamilton County transfer tax exemptions
Not every Hamilton County real estate tax transaction is subject to transfer taxes. Here is a short list of possible exemptions sellers can qualify for. For a complete list, consult the form on the Hamilton County Auditor’s website.
- Government-related transfers: Transfers to or from the United States, the State of Ohio, or their political subdivisions.
- Transfers involving no or minimal payment: Includes gifts between spouses or immediate family, transfers with no money exchanged, or where the property’s value is under $100.
- Court-ordered or estate-related transfers: Includes deeds resulting from court orders (not involving a sale), transfers to heirs or surviving spouses, or deeds involving a deceased person’s estate.
- Trust-related transfers: Transfers to or from a trust when the grantor has revocation rights or when the transfer is made to beneficiaries.
- Correction or security-related transfers: Deeds made to correct a prior deed or to provide or release security for a debt (with an affidavit of facts).
Estimating your Hamilton County transfer taxes
Ready to sell your Hamilton County home? Before you begin, it’s a good idea to get an estimate of what your total closing costs will be. Consider using HomeLight’s Net Proceeds Calculator. This tool can give you a ballpark figure of the various closing costs, transfer taxes, agent fees, and more, helping you better calculate your net proceeds from your home sale.
If you want even more help, why not work with a professional? HomeLight can connect you with a top Hamilton County real estate agent today. They can provide you with invaluable market expertise, helping you sell your home quickly, at a price that you’ll be sure to love.
Editor’s note: This post is for educational purposes only and does not constitute legal or financial advice. Links and mentions of Hamilton County area tax services or attorneys should not be considered endorsements.
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