Deed Tax Consideration
Deed Tax is calculated by multiplying the tax rate of .0033 (.0034 Hennepin/Ramsey Counties) by the net consideration.
Net consideration is the total purchase price less the value of any liens or encumbrances, included in the purchase price, that remain on the real property at the time of the sale and are not removed as a result of the sale (mortgage being assumed by buyer, special assessment liens, mechanic liens, etc.).
- Purchase price
- Costs seller has agreed to pay on behalf of the buyer (seller paid closing costs, etc.)
- Premiums paid by the purchaser (commission at auction sale, etc.)
- Improvements made by the seller which are included in purchase price
- Gifts of equity included in the purchase price
Deed Tax Basis: $ 250,000.
Deed Tax Basis: $ 525,000.
Real property is sold for a purchase price of $ 150,000. The buyer is assuming the seller’s mortgage, which has a balance of $ 50,000.
Deed Tax Basis: $ 100,000.