The Georgia intangible recording tax is a state tax paid when the security deed for a long-term loan on Georgia real estate is recorded. It costs $1.50 for every $500 of the loan amount, or about $3 per $1,000 (0.3%), capped at $25,000 per note. The lender owes it by law, but borrowers usually pay it at closing.
If you are buying or refinancing in Georgia, you will see this charge on page 2 of your Loan Estimate. It surprises people because it follows the size of your loan, not the price of the house. This guide walks through how the tax works, how to check the math yourself and what changes when you refinance.
What the intangible recording tax is
Under O.C.G.A. § 48-6-61, Georgia taxes the recording of a security instrument (in a home purchase, usually the security deed) that secures a "long-term note" backed by Georgia real estate. In plain terms: when your lender records its claim on your home with the county, the state collects a tax based on how much you borrowed.
According to the Georgia Department of Revenue, a few rules frame how the tax is handled:
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Where it is recorded: "Every holder (lender) of a long-term note secured by real estate must record the security instrument in the county in which the real estate is located within 90 days from the date of the instrument executed." The tax must be paid before the instrument is recorded.
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Who collects it: the Clerk of the Superior Court. In counties with 50,000 or fewer residents, the tax collector or tax commissioner may collect it instead.
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Penalty for nonpayment: "Failure to pay the tax will incur a 50 percent penalty of the tax amount and 1 percent interest per month from the time the tax was due."
For most buyers, the closing attorney handles payment and recording as part of the closing. You do not usually deal with the clerk's office yourself.
How the tax is calculated
The statute sets the rate at "$1.50 for each $500.00 or fraction thereof of the face amount of the note." Two details matter:
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It is based on the note's face amount, meaning the loan amount, not the purchase price or appraised value.
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"Or fraction thereof" means partial units round up. Any leftover amount under $500 counts as a full $500 unit.
Here is how that plays out on a few loan sizes:
| Loan amount | $500 units | Intangible tax | | --- | --- | --- | | $320,000 | 640 | $960.00 | | $320,250 | 641 (the extra $250 rounds up) | $961.50 | | $550,000 | 1,100 | $1,650.00 | | $1,000,000 | 2,000 | $3,000.00 |
The $550,000 and $1,000,000 examples match those published by Georgia closing attorney Chris Pahl at Georgia Title & Escrow.
The statute also caps the tax: "The maximum amount of any intangible recording tax payable as provided in this Code section with respect to any single note shall be $25,000.00." Georgia Title & Escrow notes that a loan has to exceed roughly $8.33 million to reach that cap, so it does not come into play for typical home loans, including most jumbo mortgages.
Quick sanity check: multiply your loan amount by 0.003. If your loan is not an even multiple of $500, the actual figure may be up to $1.50 higher because of rounding.
Who pays it: lender or borrower?
Legally, the tax falls on the "holder" of the note, meaning the lender. But the same statute adds that "the holder may pass on the amount of such tax to the borrower or mortgagor but the amount of such tax passed to the borrower or mortgagor shall not be considered or treated as part of any finance charge imposed by the holder in connection with the loan transaction."
In practice, the lender passes it on. Georgia Title & Escrow says that while the note holder is legally responsible, borrowers typically bear the cost as a closing charge. Plan on it being part of your cash to close unless your contract or loan terms say otherwise.
The finance-charge language means the law treats this as a government tax, not a charge the lender imposes for credit. That is one reason it shows up with other government fees on your disclosures and not with lender charges.
What counts as a "long-term" note, and the 2025 change
The tax only applies to long-term notes. Until mid-2025, a note was long-term if any principal was due more than three years (36 months) after the note date.
HB 586, sponsored by Rep. Bruce Williamson (District 112), changed that line to 62 months (five years and two months). The bill was signed May 9, 2025 and took effect July 1, 2025, according to Troutman Pepper Locke and Calloway Title. Georgia Title & Escrow says instruments presented for recording on or after July 1, 2025 that secure notes maturing within 62 months are exempt, regardless of when the note was signed.
What this means for a typical homebuyer: nothing changes. A standard 15- or 30-year mortgage has principal due well beyond 62 months, so it is still a taxable long-term note. Troutman Pepper Locke says the change mainly helps construction loans with extension options. Short commercial loans may also be affected.
One wrinkle: Troutman Pepper Locke noted that the Department of Revenue's rules needed amending for the 62-month change. As of October 2026, the rule definition posted on the state rules site (Rule 560-11-8-.03) still read "more than three years." The amended statute is the current law.
Refinancing: same lender vs. new lender
Refinancing is where the details can save you money. Under DOR Rule 560-11-8-.05, as summarized by the Georgia rules site and Georgia Title & Escrow, when the original lender and the original borrower refinance the unpaid principal, that portion is not taxed again, as long as tax was paid on the original instrument (or the holder was exempt). Only new money is taxed.
An example:
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You owe $200,000 and refinance into a $240,000 loan with the same lender. Only the $40,000 of new money is taxed: 80 units × $1.50 = $120.
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If you take the same $240,000 loan from a different lender, the rule as summarized does not apply, and the tax is figured on the full new note: 480 units × $1.50 = $720.
On a small refinance that $600 difference will not decide much on its own, but on a larger loan or a cash-out refinance it belongs in your break-even math. When you compare refinance offers, ask each lender whether the intangible tax line reflects the full loan or only new money.
The DOR rules chapter also has separate sections covering additional advances, adjustable-rate mortgages, secured lines of credit, wrap-around notes, property in more than one county or state, exemptions and refund claims (Rules 560-11-8-.06 through .16). If your loan is anything other than a plain purchase or refinance, ask your closing attorney how those rules apply. The Department of Revenue directs questions about specific exemptions to local tax officials.
Don't confuse it with the transfer tax
Georgia has a second closing tax that often sits near the intangible tax on paperwork: the real estate transfer tax on the deed. Under O.C.G.A. § 48-6-1, as quoted by Georgia Title & Escrow, it is "$1.00 for the first $1,000.00 or fractional part...and...10 cents for each additional $100.00."
The key differences:
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Intangible recording tax: based on the loan amount, tied to the security deed, about $3 per $1,000.
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Transfer tax: based on the property's sale price, tied to the deed that transfers ownership, about $1 per $1,000. On a $400,000 sale, for example, the formula works out to $400.
A cash buyer has no loan, so there is no intangible tax, but the transfer tax still applies to the deed. Who pays the transfer tax is a matter for your purchase contract, so read that section or ask your agent or attorney.
Where it shows up on your Loan Estimate and Closing Disclosure
The Consumer Financial Protection Bureau says government recording charges appear "in section E on page 2 of your Loan Estimate (and section E on page 2 of your Closing Disclosure)."
Under the federal disclosure rule, 12 CFR 1026.37, Section E is labeled "Taxes and Other Government Fees" and has two lines:
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Recording Fees and Other Taxes: recording fees plus other government fees and taxes, except transfer taxes paid by the consumer.
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Transfer Taxes: the total of transfer taxes the consumer pays.
A line is left blank if nothing is charged. Lenders and closing attorneys handle the line placement; your job is to confirm the dollar amounts make sense. If you cannot tell which figure in Section E is the intangible tax, ask your lender or closing attorney to break it out for you.
Also compare your Loan Estimate with your Closing Disclosure. Because the tax follows the loan amount, it will change if your loan amount changes, for example, if you raise your down payment or the appraisal changes your financing.
A short checklist before closing
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Do the math. Loan amount × 0.003, then allow for rounding up to the next $500.
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Find it in Section E on page 2 of your Loan Estimate and ask for a breakdown if the line combines several charges.
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Recheck after any loan change. A new loan amount means a new tax amount.
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On a refinance, ask whether you are staying with the same lender. If so, the tax should apply only to new money.
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For construction or short-term loans, ask about the 62-month rule. Notes maturing within 62 months that are recorded on or after July 1, 2025 are exempt.
The intangible tax is one piece of a Georgia closing. Transfer tax, title charges and the closing attorney's fee make up much of the rest. Reviewing all of Section E alongside the attorney and title lines on your Loan Estimate will give you the clearest picture of your cash to close.
