Georgia's Intangible Recording Tax: The Closing Cost Buyers Don't Expect

Most closing costs scale with the price of the house. Georgia has one that scales with the size of your loan — and because it is calculated per $500 of the note, it grows in visible steps as your loan amount rises.

It is called the intangible recording tax, and it catches buyers moving to Georgia from states that do not have one.

Key takeaways

• The tax is $1.50 for each $500 or fractional part of the face amount of the note.
• The maximum on any single note is $25,000.
• The security instrument must be recorded within 90 days of the date of the instrument.
• Failure to pay incurs a 50% penalty plus 1% interest per month.
• A 2025 change redefined a "long-term note" as one with principal due more than 62 months out, effective July 1, 2025.
• Refinancing with your original lender can be exempt on the portion representing unpaid principal.

How it is calculated

Georgia's intangible recording tax is governed by O.C.G.A. sections 48-6-60 through 48-6-77. The Department of Revenue states the rate plainly: "The tax for recording the note is at the rate of $1.50 for each $500.00 or fractional part of the face amount of the note."

Two features of that sentence do the work.

It is based on the note, not the purchase price. A larger down payment means a smaller note, which means less tax. Two buyers purchasing identical homes at identical prices can owe different amounts.

"Fractional part" rounds up. The tax applies to each $500 or fractional part thereof, so a note that exceeds a $500 increment by any amount is taxed as though it reached the next one.

The maximum amount of recording tax on any single note is $25,000, which only becomes relevant on very large loans.

The 90-day rule and the penalty

The security instrument must be recorded within 90 days from the date of the instrument executed to secure the note.

The consequence of getting this wrong is not trivial: failure to pay the tax incurs a 50 percent penalty of the tax amount and 1 percent interest per month from the time the tax was due.

In an ordinary purchase closing this is handled by the closing attorney as part of recording, so it is not something a buyer typically manages personally. It matters more in unusual situations — a seller-financed note, a modification, a deal where recording is delayed.

What changed in 2025

This is the part that is out of date almost everywhere online.

House Bill 586 (2025) amended the definition of a "long-term note secured by real estate" under O.C.G.A. section 48-6-60(3). The Department of Revenue's notice to superior court clerks describes the new rule: a long-term note is now one "with any part of the principal due more than 62 months from the date of the note, or from the date of any instrument executed to secure the note."

The effective date and its reach are both specific:

• The definition became effective July 1, 2025.
• Beginning that date, unless a statutory exemption applies, a note or securing instrument presented for recording that falls due more than 62 months out is a long-term note subject to the tax.
• A note falling due within 62 months or less is not subject to the intangible recording tax.
• The new definition applies to all notes and security instruments presented for recording on or after July 1, 2025, even if the date of the note predates July 1, 2025.

The previous threshold was three years. Note that the Department's older regulations under Subject 560-11-8 still describe the three-year test; the statutory amendment and the Department's bulletin control. If you are reading an article that says three years, it predates the change.

For a typical 15- or 30-year purchase mortgage, this makes no practical difference — those are long-term notes under either definition. It matters for shorter-term financing: bridge loans, construction notes, and seller-financed paper structured inside five years.

Senate Bill 141 (2025) separately changed the period in which a taxpayer who pays the tax under protest may file a claim for refund.

The refinance exemption

If you are refinancing, this is the provision worth knowing.

Under the Department's rules, intangible recording tax is not required to be paid on the part of the face amount of a new instrument where the original lender refinances unpaid principal with the original borrower, provided the tax was paid on the original instrument or the holder was exempt.

The conditions are narrow — same lender, same borrower, and the exemption reaches the portion representing unpaid principal. If you refinance with a different lender, or take cash out beyond the unpaid principal, the exemption does not cover that. Confirm the treatment with your closing attorney rather than assuming.

Note also that the holder of the note bears the obligation to pay the tax on recording, though how that cost is allocated between the parties is a matter of the transaction.

What to do with this

• Budget from your loan amount, not the price. Ask for your Loan Estimate and check the recording taxes line rather than estimating from the purchase price.
• Factor it into your down payment decision. A larger down payment reduces the note and therefore this tax. It is a small factor next to the others, but it moves in the same direction.
• If you are refinancing, ask about the exemption specifically. Whether your transaction fits the same-lender, same-borrower, unpaid-principal conditions is a question for the closing attorney.
• Do not rely on older articles. The 62-month definition is recent, and much of the material online still describes the three-year rule.

Related Georgia resources

For county-level financing limits, see our Georgia loan limits guide. Local pages: Atlanta and Savannah.

Program pages: conventional, FHA, and VA. You can estimate payments with our calculators.

To see this cost inside a full estimate for a specific Georgia purchase, browse our loan officer directory or get started.

Frequently Asked Questions About Georgia Intangible Recording Tax

How much is Georgia's intangible recording tax?

The rate is $1.50 for each $500 or fractional part of the face amount of the note, and the maximum on any single note is $25,000. Because it is based on the loan amount rather than the purchase price, a larger down payment reduces it.

Does Georgia's intangible tax apply to a refinance?

Not necessarily. Under the Department of Revenue's rules, the tax is not required on the portion of a new instrument where the original lender refinances unpaid principal with the original borrower, provided tax was paid on the original instrument or the holder was exempt. A different lender or cash out beyond unpaid principal falls outside that.

What is a long-term note secured by real estate in Georgia?

Effective July 1, 2025, House Bill 586 defines it as a note with any part of the principal due more than 62 months from the date of the note or the securing instrument. The previous threshold was three years. Notes falling due within 62 months or less are not subject to the tax.

When must the security instrument be recorded?

Within 90 days from the date of the instrument executed to secure the note. Failure to pay the tax incurs a 50 percent penalty of the tax amount plus 1 percent interest per month from the time it was due.

Who pays the Georgia intangible recording tax?

The holder of the note bears the obligation to pay it upon recording the security instrument, though how the cost is allocated in a transaction is a matter for the parties and appears on the closing disclosure.

Sources

• Georgia Department of Revenue — Intangible Recording Tax
• Georgia Department of Revenue — HB 586 / SB 141 Informational Bulletin 2025-02, Notice to Superior Court Clerks
• O.C.G.A. sections 48-6-60 through 48-6-77
• Georgia Rules and Regulations, Subject 560-11-8 (Intangible Recording Tax)

This article is for general information only and is not legal, tax, or financial advice. State law and investor guidelines change; confirm current requirements with a licensed professional before making decisions. Xpert Home Lending, Inc. is an Equal Housing Lender.