Home cash purchase sales tax?

March 3rd, 2010 | by admin |

I am looking to pay cash for a home and property. How much can I expect to pay in sales tax? I live in Mississippi but can’t find info on the tax commission website. Can someone enlighten me? a quote from any other states would help give me a ballpark figure, so please answer even if not specific to MS.

Real property isn’t subject to sales tax in most of the US. Each state and county have different taxes that may apply. There are real estate transfer taxes, registration fees, etc. A real estate broker should be able provide you with an estimate. A real estate lawyer is another source if you’re not using a broker. (You really need to use a lawyer. The lawyer’s office handles title searches and other services to make certain the property is clear of liens or use restrictions.)

Real estate commissions are usually 6% of the sales price. A ballpark figure for other expenses is about 1%. You may also have to reimburse the seller for taxes that have been paid for the portion of the year you will own the property.

I hope this helps.
Gary

  1. 3 Responses to “Home cash purchase sales tax?”

  2. By Jean on Mar 3, 2010 | Reply

    Not sure about your state, but generally a home is considered real property. It is not subject to sales tax. There are property taxes to be considered which you should be able to find on the county website.

    Good luck in your new home.
    References :

  3. By garyg7 on Mar 3, 2010 | Reply

    Real property isn’t subject to sales tax in most of the US. Each state and county have different taxes that may apply. There are real estate transfer taxes, registration fees, etc. A real estate broker should be able provide you with an estimate. A real estate lawyer is another source if you’re not using a broker. (You really need to use a lawyer. The lawyer’s office handles title searches and other services to make certain the property is clear of liens or use restrictions.)

    Real estate commissions are usually 6% of the sales price. A ballpark figure for other expenses is about 1%. You may also have to reimburse the seller for taxes that have been paid for the portion of the year you will own the property.

    I hope this helps.
    Gary
    References :

  4. By tro on Mar 3, 2010 | Reply

    there is no sales tax on the purchase of a home
    References :

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