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Tennessee Closing Cost Calculator
Tennessee transfer tax is 0.37% of the greater of price or market value, paid by the buyer. Estimate Tennessee realty transfer tax with the correct consideration or market-value basis. Add quotes for mortgage tax and other buyer or seller costs.
Tennessee transfer tax and settlement worksheet
Ordinary freehold transfer: 0.37% of the greater of consideration and fair market value. A confirmed true quitclaim uses consideration. A confirmed taxable-value override is available for professionally determined bases. The grantee pays the realty transfer tax. Mortgage/indebtedness tax, exemptions and recording charges are separate.
Ordinary deeds use the greater of price and value
The Department of Revenue's Recordation Tax Manual bases an ordinary freehold transfer on the greater of consideration and the property's fair market value at transfer. The worksheet asks for both; a blank market value does not silently mean the sale price is sufficient.
With a $300,000 price and $350,000 market value, the base is $350,000 and the tax is $1,295. If both figures are $300,000, the tax is $1,110. Use an independently confirmed value, not an arbitrary number chosen to lower the estimate.
A true quitclaim has a different base
The manual distinguishes a true quitclaim conveying only the grantor's interest from a deed that conveys the property or supplies a warranty despite its label. The confirmed true-quitclaim option uses consideration. It does not classify the legal language of your document.
For a special valuation already calculated by the deed preparer, enter the confirmed taxable base in the override field. One manual example uses a $146,765 base and produces $543.03 tax at 0.37%. This worksheet reproduces that arithmetic but does not calculate a retained life-estate factor or decide an exemption.
Realty tax and mortgage tax are different charges
The current DOR rate page lists realty transfer tax at $0.37 per $100. The calculation multiplies the confirmed base by 0.0037 and rounds the resulting dollars to cents; it does not round the base upward to $100 blocks.
DOR's recordation overview treats tax on debt instruments separately. Enter the lender's confirmed mortgage-tax amount in other quoted charges, along with the other applicable settlement fees. Do not include it a second time if your provider's combined quote already covers it.
Use the correct side of the settlement
DOR identifies the grantee as the realty-tax payer. The model's default seller share is therefore zero, allocating the tax to the buyer. Change the budgeting allocation only to reflect your agreement. Then enter deposits, credits, down payment, commission and payoff in the appropriate buyer or seller fields.
Tennessee transfer-tax worked examples
| Scenario | Taxable value | State tax | Local amount | Tax subtotal |
|---|---|---|---|---|
| Ordinary transfer: market value equals price | $300,000.00 | $1,110.00 | $0.00 | $1,110.00 |
| Ordinary transfer: market value is higher | $350,000.00 | $1,295.00 | $0.00 | $1,295.00 |
| Confirmed true quitclaim: consideration basis | $300,000.00 | $1,110.00 | $0.00 | $1,110.00 |
| Manual arithmetic check: confirmed tax base | $146,765.00 | $543.03 | $0.00 | $543.03 |
Last reviewed 2026-10-05. How the settlement worksheet works.
Questions about Tennessee
- What value does Tennessee use for realty transfer tax?
- For an ordinary freehold transfer, the tax base is generally the greater of consideration and fair market value. A confirmed true quitclaim uses consideration. The model asks for the deed type and value instead of assuming every deed uses the purchase price.
- Who pays Tennessee realty transfer tax?
- The Department of Revenue identifies the grantee or transferee as the payer. The worksheet therefore starts with a zero seller share. Confirm your contract allocation, and keep separate mortgage or indebtedness tax out of the deed-tax figure.