For sale of your home in Montana? You may have some questions about the Montana real estate transfer tax.
Transfer tax is a fee levied by a state, county, or city when ownership of a property is transferred from one party to another. These taxes may vary depending on your location and the details of the property’s sale.
This guide will explain how Montana real estate transfer tax works to give you an idea of what the state of your treasure is expected.
What is transfer tax?
When property changes hands, real estate transfer tax will be assessed by the state or local government. According to the Federal Trade Commission, these taxes are triggered once the title (or legal right to the property) is transferred from one person to another.
The actual tax rate and liability for paying this tax may vary depending on the location of the property, reflecting different state, county or city regulations.
Who pays the transfer tax?
Unlike many other states, Montana does not have real estate transfer taxes on real estate transactions, which can reduce certain financial burdens for sellers or buyers.
Montana’s property tax ranks 35th in the country, down from the lower end of the spectrum, according to the Tax Foundation.