North Carolina's Excise Tax Is the Seller's, by Statute
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
In some states the transfer tax is the thing that derails a physician's closing. North Carolina is the opposite, and the statute is unusually clear about why.
The rate
N.C.G.S. §105-228.30(a), in its own words:
"An excise tax is levied on each instrument by which any interest in real property is conveyed to another person. The tax rate is one dollar ($1.00) on each five hundred dollars ($500.00) or fractional part thereof of the consideration or value of the interest conveyed. The transferor must pay the tax to the register of deeds of the county in which the real estate is located before recording the instrument of conveyance."
One dollar per five hundred is 0.2%:
| Price | Excise tax at 0.2% |
|---|---|
| $200,000 | $400 |
| $300,000 | $600 |
| $400,000 | $800 |
| $431,269 (Raleigh typical) | about $863 |
| $152,608 (Kinston typical) | about $305 |
★★ The sentence that separates North Carolina from Pennsylvania
"The transferor must pay the tax." The transferor is the party conveying the property, which on a purchase is the seller. North Carolina's legislature assigned the obligation, and it assigned it away from the buyer.
Set that against the other states we cover:
| Rate | Who the statute charges | |
|---|---|---|
| North Carolina | 0.2% | ★ the transferor (seller) |
| Pennsylvania | 1% state; Philadelphia 4.578% | ★ grantor and grantee, jointly and severally |
| Ohio | 0.1% + up to 0.3% = 0.4% cap | not assigned in the statutes we read |
On a $400,000 purchase, North Carolina's excise tax is $800 charged to the seller. Philadelphia's is $18,312 with the buyer legally exposed to the whole amount, since the City states it "has the right to collect 100% of the tax from either party." The gap is $17,512, and the liability runs the other way.
★ We are lenders, and a contract can allocate economics however the parties agree. So what we tell you is what the statute says and that your closing agent will show you the settlement statement. We do not advise on who should pay it — that is your agent's and your attorney's territory, not ours.
The eight exemptions
§105-228.29 provides that the Article does not apply to transfers of an interest in real property:
- By operation of law.
- ★ By lease for a term of years.
- By or pursuant to the provisions of a will.
- By intestacy.
- By gift.
- Where no consideration in property or money is due or paid by the transferee to the transferor.
- By merger, conversion, or consolidation.
- By an instrument securing indebtedness.
★ Number two is a direct contrast worth knowing. North Carolina exempts a lease for a term of years. Pennsylvania's realty transfer tax expressly reaches real estate transferred by long-term lease. Opposite treatment of the same arrangement, and both come from the statutes.
Neither statute states a year threshold for what counts as a long-term lease, so we publish none. If you are converting a property to a rental under a long lease, that is a question for your attorney.
How it is actually collected
To the register of deeds of the county where the real estate is located, before the instrument of conveyance is recorded. Where a parcel lies in two or more counties, the tax goes to the county holding the greater part by value.
The county credits half the proceeds to its general fund and remits half to the Department of Revenue monthly, less refunds and an administrative allowance; a county may retain two percent for administration. §105-228.28 applies the Article to every person conveying an interest in North Carolina real estate other than a governmental unit or an instrumentality of one. It also reaches timber deeds and contracts for standing timber as if they conveyed real property.
★ What about a local land transfer tax?
Some North Carolina counties are commonly reported to levy an additional local land transfer tax, and the coastal counties come up most often.
We publish no local rate, because we verified none from a primary source in this build. If you are buying on the coast, ask the county register of deeds for the local figure before you set your cash plan. We would rather tell you where to get the number than print one we have not read.
So what cash do you actually need?
With 100% financing the down payment can be $0, the excise tax is statutorily the seller's, and North Carolina's rate is low in any case. What remains is recording fees, prepaid taxes and insurance, and reserves — and in North Carolina those will be the larger part of your closing cash by a wide margin.
That is a genuinely comfortable position compared with Philadelphia, and it is why this site's attention goes to the programme geography rather than the closing table. Where the money and the market meet.
We will give you the whole figure on your own file. Call (480) 296-6513.
Frequently asked questions
How much is the excise tax when buying a house in North Carolina?
One dollar on each five hundred dollars, or fractional part, of the consideration or value of the interest conveyed, which is 0.2%. On a $400,000 purchase that is $800. The rate is set by N.C.G.S. §105-228.30(a). Verified 2026-10-06.Who pays the excise tax in North Carolina, the buyer or the seller?
The statute charges the transferor, which on a purchase is the seller. N.C.G.S. §105-228.30(a) provides that the transferor must pay the tax to the register of deeds of the county in which the real estate is located before recording the instrument of conveyance. A contract can allocate economics between the parties, so confirm the settlement statement with your closing agent; we are lenders and do not advise on allocation.What transfers are exempt from the North Carolina excise tax?
Eight categories under N.C.G.S. §105-228.29: by operation of law, by lease for a term of years, by or pursuant to a will, by intestacy, by gift, where no consideration is due or paid by the transferee, by merger, conversion or consolidation, and by an instrument securing indebtedness. Note that North Carolina exempts a lease for a term of years, whereas Pennsylvania's realty transfer tax reaches long-term leases. Verified 2026-10-06.Is North Carolina cheaper to close in than Pennsylvania?
Substantially, on transfer costs. North Carolina's excise tax is 0.2% and the statute charges it to the seller. Philadelphia's combined realty transfer tax is 4.578% and Pennsylvania holds grantor and grantee jointly and severally liable, with the City stating it may collect 100% from either party. On a $400,000 purchase that is $800 in North Carolina against $18,312 in Philadelphia.Do North Carolina counties charge an extra land transfer tax?
Some are commonly reported to, particularly on the coast, but we publish no local rate because we verified none from a primary source. If you are buying in a coastal county, ask that county's register of deeds for the local figure before setting your cash plan.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, visa, or licensure advice. Physician-loan program terms, eligible degrees, and overlays are set by the lender and change. North Carolina Office of Rural Health incentive award amounts, eligibility and guidelines are set by ORH, are contingent upon funding, and are subject to change at any time at ORH's discretion; several current provisions are described by ORH as temporary. Figures here carry the date we verified them against ORH's published pages and the North Carolina General Statutes. County Distress Rankings are set by the State and change. All loans are subject to borrower and property qualification, including credit and income review.