Virginia's grantor tax (transfer tax) is:
Question & Answer
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$0.50 per $500 of value
$1.00 per $1,000 of value
This option incorrectly states $1.00 per $1,000, which is double the actual rate. Many states use this rate, but Virginia's specific rate is half of this amount.
No transfer tax
Virginia does have a transfer tax, unlike some states. This misconception may arise from confusion with states that don't impose this tax.
1% of sale price
1% of sale price would represent a significantly higher tax burden than Virginia's actual rate of approximately 0.1% ($0.50 per $500).
Why is this correct?
Virginia's grantor tax is specifically $0.50 per $500 of value, which translates to $1.00 per $1,000. This is a state-mandated tax that must be collected at closing and is based on the property's consideration or value.
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