What Is the Mortgage Tax?

The mortgage tax, also known as the mortgage recording tax, is paid when you complete the mortgage loan transaction; it is separate from the mortgage interest tax. The rate varies from state to state. For example, New York's mortgage recording tax is one of the highest in the U.S. Currently, these eight states are charged the mortgage recording tax: Alabama, Florida, Kansas, Minnesota, New York, Oklahoma, Tennessee, and Virginia or Washington, D.C.

Tellus TIP:

Check with your mortgage broker or loan officer to see if you have to pay a mortgage tax.