What is the difference between Deed Transfer Tax and Property Tax?
Deed Transfer Tax is the tax owed at the exact time a deed is recorded transferring real property to a new owner (buyer). This tax is normally 2%, but as high as 4%, (depending upon the municipality where the property is located) of the consideration (purchase price) of the property, or if no consideration is declared, on the adjusted fair market value assessment (current fair market value x common level ration) of the property. Property Tax is quite simply a tax on real property (real estate). Three separate tax bills are generated on a yearly basis. All property owners receive a County, Municipal and School District Tax bill. All three tax bills are calculated based on the current fair market value multiplied by the current milage rate of that particular governing body. All governing bodies review and/or adjust their milage rates on an annual basis according to budgetary needs.
