Who pays transfer taxes? | When are transfer taxes paid? | Methodology
Nebraska's current transfer tax rate is $2.25 per $1,000. So, for a house worth $251,315 — the median home price in the state — the transfer tax due will be $578.
Known as the documentary stamp tax, the transfer tax in Nebraska is usually paid by the seller, although the specifics are up for negotiation.
Clever Real Estate can help you cut costs here — our concierge team will partner you with an experienced agent who can help you negotiate a good deal with your buyer on transfer taxes. You'll save big by paying only 1.5% in commission, which is much less than the Nebraska average of 2.75%.
You can't change transfer tax rates. But, an experienced Clever Real Estate agent can help you win the negotiation battle so you aren't stuck paying all of the transfer taxes on your own.
When you choose Clever, you'll work with a full-service realtor with transfer tax expertise in your local market.
Clever's service is totally free, with zero obligation — you can walk away at any time.
What taxes will you have to pay on your real estate transaction in Nebraska? Let's take a closer look at how Nebraska real estate transfer taxes work and how much you can expect to pay.
What Are Real Estate Transfer Taxes?
Transfer taxes include any type of tax that is levied on the transfer of property title or ownership from one owner or entity to another. These types of taxes vary at the state and local level, so it's important that both buyers and sellers work with an experienced local real estate agent to completely understand the process before closing on a sale.
In Nebraska, these transfer taxes are referred to as a documentary stamp tax.
Who pays transfer taxes in Nebraska: The buyer or the seller?
Unless otherwise stated in the contract, it is the seller's responsibility to pay the transfer taxes and all attorney fees included in the state of Nebraska. The only time a buyer will pay transfer taxes in Nebraska is if the cost is part of closing negotiations, and agreed upon and outlined in the written closing contract.
What falls under the buyer's responsibility when it comes to transfer taxes is payment for the cost of preparing financial papers, recording fees, and any attorney fees that the buyer agreed to or incurred.
How Much Are Transfer Taxes in Nebraska?
The documentary stamp tax, or transfer tax, rate in Nebraska is $2.25 per $1,000 of home sale value.
When do you pay transfer taxes in Nebraska?
According to Nebraska law, transfer taxes must be paid by the time the deed is transferred and recorded. This deed itself is recorded at the cost of the buyer, though the taxes are to be paid by the seller.
Can You Deduct Transfer Taxes?
Unlike ordinary property tax, you can't deduct real estate transfer tax from your income tax return, according to the Internal Revenue Service. What you can do, however, is include them in what's called the cost basis, which is the amount you paid for the home.
Real estate taxes are included in the cost basis, which means they are deducted over the property's lifetime. For example, let's pretend you bought your home for $100,000 and are selling it for $150,000. You pay $4,000 in transfer taxes. You would then have a cost basis of $104,000 and can use this to calculate your capital gain cost.
When you sell your home, you're generally required to pay capital gains tax on the amount the home appreciated, or take a capital loss deduction if the property decreased in value. You find your capital gain by subtracting the cost basis from the sale price, so real estate transfer tax can ultimately decrease your income tax burden when you sell your home. For depreciation deductions, you can subtract the value of the land from the cost basis.
Other Considerations
In most states, including Nebraska, transfer taxes are paid at the time the sale closes. This tax is always calculated based on the property value and its classification. If capital gains are to be paid by the seller, these will be due at the time you file your taxes.
It's common in Nebraska to try to negotiate the transfer tax costs during closing so that the buyer pays a portion or all of the tax. A local, Nebraska real estate agent can help with these negotiations and all legal requirements that need to be sorted out. Buyers can work with a Clever Partner Agent to help navigate the complex maze of real estate transactions.
Clever Partner Agents charge only a 1.5% listing fee compared to the state average of 2.75%! The money you'll save can more than offset the cost of the transfer taxes.
» SAVE: Learn more about how a Clever agent can help you navigate California transfer taxes
Methodology
- Transfer tax amounts are based on government website information as of February 2024.
- We gathered our listing commission rate data from a December 2023 survey of 630 of our partner agents.
- Home values, list prices, and sale prices are based on Zillow data as of February 2024.
