One of everyone's least favorite closing costs to pay is the transfer tax. And we hate to be the bearer of bad news, but it's going to be paid by every buyer and seller when it comes to transferring property in the state of Maine.
The good news? Our transfer tax in Maine is significantly lower than what our neighbors in New Hampshire have to pay! Here in Maine, we pay a little less than a third of what you'd be paying in transfer tax to buy or sell across the NH border at just .44%!
But because this is still no small cost, buyers, sellers, realtors and loan officers need to know how much transfer tax will cost them when getting ready to buy or sell. Typically in Maine, transfer tax is split in half between buyer and seller unless otherwise negotiated between the parties as a part of the purchase and sale contract.
The rule states that the transfer tax is $2.20 for every $500 of the purchase price, or every fractional part of $500 of the price of the property being transferred. Here's how to find that number:
1. Take the purchase price and round to the nearest $500 if not already even.
If purchase price is $650,750, you'll want to round up to $651,000.
2. Take that number and multiply by .44%.
$651,000 x .0044 = $2,864.40 transfer tax total
3. Divide the total transfer tax by two. In Maine, transfer tax is split in half by buyer and seller.
$2,864.40 / 2 = $1,432.20
While it's not a fun number to calculate, your portion of the transfer tax will be accounted for on your closing disclosure when you receive your final numbers. If you're a buyer looking for a closing cost estimate or a seller looking for a proceeds estimate, check out our Closing Cost Calculators for a more detailed look at your fees!