What Garner Sellers Should Know About Deed Stamps

Selling your Garner home and hearing about “deed stamps” at closing? You are not alone. This term refers to North Carolina’s real estate excise tax, and it affects your net proceeds. In a few minutes, you can understand what it is, how much you will likely pay, and how it is handled in Wake County. Let’s dive in.

Deed stamps in North Carolina

North Carolina charges an excise tax on the transfer of real property, often called deed stamps. State law sets the rate at $1 for every $500 of the sale price or part of $500. The seller is responsible for the tax when the deed is recorded. You can see the legal basis in the session law that established the tax and rate in North Carolina’s statutes.

Physical stamps are no longer used. The state eliminated adhesive revenue stamps years ago, but the tax still applies and is collected at recording, including in Wake County. That change was formalized in a later session law addressing stamps and penalties.

Calculate your tax

Use this quick formula to estimate your deed stamps:

• Find your contract sale price.
• Divide by 500.
• Round up to the next whole number.
• Multiply by $1.

Examples:

• $200,000 sale price → 200,000 ÷ 500 = 400 → tax = $400.
• $250,250 sale price → 250,250 ÷ 500 = 500.5 → round up to 501 → tax = $501.
• $350,000 sale price → 350,000 ÷ 500 = 700 → tax = $700.

Wake County process for Garner sellers

Garner properties record in Wake County. The Wake County Register of Deeds collects the excise tax when your deed is submitted for recording. You can review land-records access and recording information through the county’s Register of Deeds portal.

When recording, you pay standard recording fees plus the excise tax. The fee schedule and process notes for Wake County are summarized on the Wake page at Deeds.com. In most closings, your settlement agent calculates the tax and pays it from escrow as part of recording, which is recognized by state law that allows settlement agents to disburse funds for recording and taxes needed to finalize the transfer. You can see this in the 2014 session law on settlement agent disbursements.

Exemptions and lien pitfalls

Some transfers are exempt, such as transfers by will, gifts where no consideration is paid, certain corporate mergers, and instruments that secure debt. Exemptions are specific and often require particular wording or supporting documents when recording. A practical overview of common exemptions appears in this North Carolina real estate practice guide.

Be careful with liens and assumed debt. Only liens that existed before the sale and remain on the property at the time of transfer may reduce the taxable amount. A mortgage created at closing does not reduce the consideration used to compute deed stamps. The North Carolina Department of Justice explains this point in its opinion on encumbrances and the excise tax.

Who pays at closing

By statute, the seller is responsible for the excise tax when the deed is recorded. In practice, the settlement agent typically pays it from escrow and lists it on the closing statement. Parties can also agree in the purchase contract how to allocate this cost. A concise summary of who pays and how it appears at closing is available in this practice guide for North Carolina real estate.

Avoid common mistakes

• Assuming a new mortgage at closing reduces the tax. Only a pre-existing lien that remains at sale time may reduce the taxable consideration.
• Forgetting that any fraction over $500 rounds up. Even a $1 increase over a $500 increment adds another $1 of tax.
• Overlooking local recording steps. Wake County uses modern recording systems, but you must report and pay the correct tax before the deed records. Use the Register of Deeds portal or your settlement agent to confirm any required steps.

What to bring to closing

Bring accurate payoff information for any existing liens, the property’s parcel details, and any documents that support an exemption if you believe one applies. Your deed should state the correct consideration so the tax can be computed and collected. Your settlement agent or closing attorney will give you a tailored checklist for your file.

If you have questions

If you are unsure about your tax amount or whether an exemption applies, start with your settlement agent or closing attorney. For recording logistics and local requirements, the Wake County Register of Deeds is the procedural authority. If you want a clear, net-proceeds plan for your Garner sale, reach out to Crumpler Realty Group. Our team pairs disciplined, financial-first advice with a smooth, step-by-step listing process.

FAQs

What are deed stamps in North Carolina?

• Deed stamps are North Carolina’s real estate excise tax on property transfers, set by statute at $1 for each $500 of consideration or part thereof, paid when the deed is recorded.

How do Garner sellers estimate deed stamps?

• Divide your sale price by 500, round up to a whole number, and multiply by $1; for example, $350,000 results in $700 in deed stamps.

Do mortgages reduce the deed stamp tax?

• Only liens that existed before the sale and remain at transfer may reduce the taxable amount; a mortgage created at closing does not reduce the tax base.

Who collects deed stamps in Wake County?

• The Wake County Register of Deeds collects the excise tax at the time of recording for Garner properties, typically handled by your settlement agent at closing.

What happens if deed stamps are not paid correctly?

• The county can refuse to record without payment, and underpayments can lead to administrative assessments and penalties under state revenue enforcement provisions.