Tennessee has two recording taxes. The realty transfer tax is 37 cents for every $100 of the home's price or value, whichever is greater. By state rule, the buyer (the grantee) pays it. The mortgage tax is 11.5 cents for every $100 you borrow, and the first $2,000 of the loan is not taxed. The borrower pays it. Both are paid to the county Register of Deeds when the deed and mortgage are recorded at closing, in Davidson, Williamson, and every other Tennessee county.
When you buy a home in Nashville, Franklin, or Brentwood, two papers get recorded with the county: the deed (which shows you own the home) and the deed of trust (which secures your mortgage). Tennessee charges a state tax to record each one. The county Register of Deeds collects it and sends it to the Tennessee Department of Revenue.
| Tax | Rate | Based on | Who pays (per TN Dept. of Revenue) |
|---|---|---|---|
| Realty transfer tax | $0.37 per $100 | The greater of the price paid or the home's value | The buyer (grantee) |
| Mortgage (indebtedness) tax | $0.115 per $100 | The loan amount, minus the first $2,000 | The borrower (debtor) |
The rates are the same in every Tennessee county. They are set by state law (Tenn. Code Ann. § 67-4-409).
Here is the math on two sample purchases. These use only the state tax rates. They leave out county recording fees, title costs, and other closing costs.
| $400,000 home, $360,000 loan | $700,000 home, $560,000 loan | |
|---|---|---|
| Transfer tax ($0.37 per $100 of price) | $1,480.00 | $2,590.00 |
| Mortgage tax ($0.115 per $100 of the loan above $2,000) | $411.70 | $641.70 |
| Both taxes together | $1,891.70 | $3,231.70 |
How we got there: $400,000 ÷ 100 × $0.37 = $1,480. For the loan, ($360,000 − $2,000) ÷ 100 × $0.115 = $411.70.
The state says who owes the tax. But your purchase contract can still say who pays which costs at closing. A seller credit toward your closing costs can also help cover them, within your loan program's limits. See seller concession limits for those caps.
On your Loan Estimate and Closing Disclosure, they are listed under "Taxes and Other Government Fees." Compare the two forms before you close.
It is 37 cents for every $100 of the price or the home's value, whichever is greater. On a $400,000 home, that is $1,480.
It is 11.5 cents for every $100 you borrow. The first $2,000 of the loan is not taxed. On a $360,000 loan, that is $411.70.
The Tennessee Department of Revenue says the grantee, which is the buyer, pays it to the county Register of Deeds. Your contract can still set who pays what at closing.
No. These are state taxes, so the rates are the same in Franklin, Brentwood, Nashville, and the rest of Tennessee. County recording fees are separate.
No. The mortgage tax is only charged when a mortgage or deed of trust is recorded. The transfer tax still applies to the deed.
Look under Taxes and Other Government Fees on your Loan Estimate and your Closing Disclosure.
Buying in Davidson or Williamson County and want to see all your cash-to-close numbers? Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Figures checked October 11, 2026. Examples are simple math using the state rates only and are not a quote of your closing costs.
