If you're buying or selling real estate in North Carolina, you may notice a charge for revenue stamps, also known as the North Carolina excise tax, on the closing documents. This tax is collected when ownership of real property is transferred and is based on the property's sale price.
How Are North Carolina Revenue Stamps Calculated?
North Carolina assesses an excise tax of $2.00 for every $1,000 of the property's sale price (or fractional part thereof).
The formula is simple:
Sales Price ÷ 1,000 × $2 = Revenue Stamp Tax
Example
If a property sells for $900,000:
- $900,000 ÷ 1,000 = 900
- 900 × $2 = $1,800
In this example, the revenue stamp tax would be $1,800.
Who Pays the Revenue Stamp Tax?
In most North Carolina real estate transactions, the seller is responsible for paying the revenue stamp tax unless another arrangement is negotiated as part of the purchase agreement.
Why Are Revenue Stamps Important?
Revenue stamps serve as documentation that the required state excise tax has been paid when ownership of the property transfers. The amount is typically shown on the recorded deed and is commonly used as part of the public record for real estate transactions.
Working with a Local Real Estate Expert
Whether you're buying or selling property in Cashiers, Highlands, Sapphire Valley, Lake Glenville, or elsewhere on the Highlands-Cashiers Plateau, understanding closing costs and transaction expenses can help you better prepare for your real estate transaction. An experienced local real estate professional can answer questions about the buying and selling process and help you navigate each step with confidence.