Conveyance Tax

AAA

DEFINITION of 'Conveyance Tax'

A tax imposed on the transfer of real property at the state or municipal level. The conveyance tax is generally calculated as a percentage of the sale price. If the property is sold for a very low amount, or transferred for free (such as between family members), it may be exempt from any conveyance tax, although estate transfer taxes may apply.

INVESTOPEDIA EXPLAINS 'Conveyance Tax'

In some jurisdictions, the conveyance tax increases as the property's sale price increases; while in others, it is a flat rate. The conveyance tax rate may also depend on the type of property (e.g., residential, nonresidential, unimproved land, etc.). While state and municipal conveyance taxes are common, there are no applicable federal conveyance taxes.

RELATED TERMS
  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Consumption Tax

    A tax on the purchase of a good or service. Consumption taxes ...
  3. Real Property

    Any property that is attached directly to land, as well as the ...
  4. Domicile

    One's primary residence for tax purposes. A domicile is established ...
  5. Deed

    A legal document that grants the bearer a right or privilege, ...
  6. Conveyance

    The act of transferring an ownership interest in real property ...
RELATED FAQS
  1. How much of the global economy is comprised of the real estate sector?

    The commercial and residential real estate industry generated an estimated $3 trillion in 2014, with some 35% of sector revenue ... Read Full Answer >>
  2. What is the process for a building owner depreciating leasehold improvements in a ...

    As long as the building owner is the person or entity that provides leasehold improvements, then the owner can depreciate ... Read Full Answer >>
  3. How can I invest in tax liens?

    An individual can invest in tax liens by identifying available liens and then participating in auctions where property tax ... Read Full Answer >>
  4. What is the difference between a lien and an encumbrance?

    A lien represents a monetary claim levied against property to secure payment of an obligation of the property owner, while ... Read Full Answer >>
  5. How do taxes impact Net Operating Income (NOI)?

    Net operating income (NOI) is a before-tax figure and does not take into account income taxes, loan payments, capital expenditures, ... Read Full Answer >>
  6. What economic indicators should an investor in the real estate sector consider?

    Investors in the real estate sector must consider multiple economic indicators before they purchase real estate stocks. Investors ... Read Full Answer >>
Related Articles
  1. Budgeting

    Managing Income During Retirement

    Learn some sensible strategies for making your hard-earned savings last for as long as you need them.
  2. Taxes

    Should You File An Early Tax Return?

    When it comes to filing your taxes, it can often pay to wait until the deadline.
  3. Personal Finance

    Pros And Cons Of Offshore Investing

    Tax loopholes are shrinking, but there are still plenty of viable prospects. Get the big picture.
  4. Retirement

    Tough Times: Should You Dip Into Your Qualified Plan?

    401(k)s, pensions and profit-sharing plans can be a source of cash, but there are consequences to this option.
  5. Economics

    What is a Leasehold Improvement?

    A leasehold improvement is an alteration made to a rented space that customizes the space for the tenant.
  6. Taxes

    Understanding Write-Offs

    Write-off has different meanings depending on the context in which it is used, but generally refers to a reduction in value due to expense or loss.
  7. Mutual Funds & ETFs

    ETF Dividends: The Lowdown on How They're Taxed

    Here's the rundown on how different ETF dividends are taxed.
  8. Professionals

    Phew! IRA Tax Fixes Possible Through Oct. 15

    Tax season ended April 15 but you've got until Oct. 15 to correct errors, including those to do with Roth and traditional IRAs.
  9. Taxes

    What's an Audit?

    An audit is an objective examination of accounting records that makes sure the records are a fair and accurate representation of the transactions they claim to represent.
  10. Taxes

    What is Adjusted Gross Income?

    Adjusted gross income (AGI) is a term from the Internal Revenue Code. AGI is used to determine a person’s income taxes due.

You May Also Like

Hot Definitions
  1. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  2. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  3. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  4. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  5. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!