What is the grantor tax in Virginia?
Virginia's grantor tax is a state tax on the deed conveying land that is sold: 50 cents for each $500 or fraction of it, charged when the greater of the consideration or the value exceeds $100 and figured without any lien that stays on the property. The grantor pays it unless the parties arrange for the grantee to pay, and the clerk returns half to the locality.
Fifty cents per $500, on whichever is greater: the consideration or the value
The statute sets the rate in one sentence. Once the consideration or the value of the interest, whichever is greater, is more than $100 in a sale, the rate of the tax
shall be 50 cents for each $500 or fraction thereof, exclusive of the value of any lien or encumbrance remaining thereon at the time of the sale, whether such lien is assumed or the realty is sold subject to such lien or encumbrance.
Va. Code 58.1-802
That sentence carries the whole calculation, and each clause does work. The tax reaches a deed by which realty that is sold is conveyed to the purchaser, or to another person at the purchaser's direction. It is measured on the consideration or the value, whichever is greater, so a low stated price does not lower the base below the value. For this chapter of the Code, the value is the most recent property tax assessment at the time the property is conveyed.
"Or fraction thereof" means a partial step of $500 is taxed as a full step. And the base leaves out the value of any lien or encumbrance that remains on the land at the sale, whether the buyer assumes it or takes the land subject to it. So a deed of trust the buyer assumes, or takes the land subject to, comes off the base. How a loan paid off out of the proceeds is treated on a given deed is for the closing attorney.
The grantor owes it, the clerk certifies it, and half goes back to the locality
The name says who pays. The tax is paid by the grantor, or by anyone who signs on the grantor's behalf, which in a sale is the seller. The same section leaves room to move it: "the grantor and grantee may arrange for the grantee to pay all or a portion of the tax."
So a buyer pays it only where the parties have arranged it. Who customarily pays each of the other closing costs is on who pays closing costs in Virginia.
Two recording rules and a revenue split sit in the same section: the deed is not admitted to record until the consideration is stated on its first page and the clerk has certified the tax paid, and the clerk then sends half the tax to the locality. How those steps run at the clerk's counter is under grantor tax in the glossary.
One narrow exception sits inside the section itself: no tax is imposed when the grantor is a locality selling tax-delinquent property at a judicial sale. Where a Carroll County deed is recorded is covered in where to record a deed in Carroll County. The deed taxes also appear, set against the county seat's other offices, on the Hillsville, Virginia town page.
Deeds of trust, partitions, divorce transfers and one kind of trust deed
Va. Code 58.1-811 C lists instruments the grantor's tax does not apply to. Four of them are set out here.
| Instrument | The condition in the Code |
|---|---|
| A deed of trust or other writing securing a debt | An instrument or writing given to secure a debt |
| A deed to the trustees of a revocable trust (subdivision A 11) | A revocable inter vivos trust, "when the grantors in the deed and the beneficiaries of the trust are the same persons, regardless of whether other beneficiaries may also be named in the trust instrument", and no consideration has passed between the grantor and the beneficiaries |
| A deed of partition (subdivision A 13) | Among joint tenants, tenants in common or coparceners |
| A deed under a divorce (subdivision A 14) | Transferring property under a decree of divorce or of separate maintenance, or a written instrument incident to that divorce or separation |
Two cautions keep that table honest. Not every deed into a family trust qualifies: the trust has to be revocable, the grantors in the deed and the beneficiaries have to be the same persons, though other beneficiaries may also be named, and no consideration can pass between the grantor and the beneficiaries. And a gift is a different matter from a sale. The grantor's tax reaches realty that is sold, while a separate provision says no recordation tax is required for a deed of gift or a quitclaim deed between the parties when no consideration has passed, provided the deed says so.
The short definition of a quitclaim is under quitclaim deed, and which deed type fits a transfer is on quitclaim vs general warranty deed. Whether a particular deed is exempt is the closing attorney's call.
The state recordation tax is a separate levy with its own base and no named payer
The grantor's tax is often confused with a second tax due on the same deed when it is recorded. Va. Code 58.1-801 imposes that one, the state recordation tax, and it differs from the grantor's tax on nearly every line that matters.
| Feature | Grantor's tax | State recordation tax |
|---|---|---|
| Section | Va. Code 58.1-802 | Va. Code 58.1-801 |
| Rate | 50 cents for each $500 or fraction | 25 cents on every $100 or fraction |
| Base | Consideration or value, whichever is greater, not counting liens that remain | Consideration or actual value, whichever is greater |
| Who pays | The grantor, unless the parties arrange for the grantee to pay | Not stated in the section; set by the contract |
| Local addition | No regional fee in these counties or Galax | A city or county may impose its own tax of one-third of the state recordation tax |
The recordation tax reaches every deed admitted to record unless a law exempts it, while the grantor's tax reaches realty that is sold.
Working out the deed taxes on a land sale you are pricing?
Send the county and the acreage, and Lowell will give you an opinion of what the land may bring. The deed tax figures themselves come from the closing attorney and the Clerk of the Circuit Court. No cost, no obligation.
Got it. Thank you.
We'll be in touch shortly with an honest read.
Questions this raises
Does a loan the buyer takes over reduce the grantor tax?
Yes. The grantor's tax is figured exclusive of the value of any lien or encumbrance remaining on the property at the time of the sale, whether the buyer assumes the lien or takes the land subject to it. How a particular loan, including one paid off out of the sale proceeds, is treated on a deed is a question for the closing attorney.
Is a deed between divorcing spouses charged the grantor tax?
Not when it fits the Code's description. The grantor's tax does not apply to a deed transferring property under a decree of divorce or of separate maintenance, or under a written instrument incident to that divorce or separation. Whether a specific deed fits that description is a question for the closing attorney handling it.
Where this page's facts come from
Every rule, office and figure above traces to one of these. Rules change; check the office before you act on one.
- Va. Code 58.1-802, tax on deeds of conveyance (the grantor's tax) Virginia General Assembly
- Va. Code 58.1-801, state recordation tax on deeds, and the value of the property conveyed Virginia General Assembly
- Va. Code 58.1-811, exemptions, including subsection C and subdivisions A 11, A 13 and A 14 Virginia General Assembly
- Va. Code 58.1-814, city or county recordation tax Virginia General Assembly
- Va. Code 58.1-802.3, additional fee in Northern Virginia Transportation Authority localities Virginia General Assembly
- Va. Code 58.1-802.4, regional fee in a qualifying planning district Virginia General Assembly
- Va. Code 58.1-802.5, regional fee in a Hampton Roads transportation district Virginia General Assembly