Seller alert: there are some proposals floating around Beacon Hill right now that could make selling your home more expensive.
Gov. Charlie Baker has proposed increasing the housing transfer tax to pay for climate change initiatives. This tax is a burden Massachusetts home sellers must pay when transferring ownership of their home to a buyer. For every $500 of your selling price, the state of Massachusetts charges you a $2.28. Baker wants to increase this tax to $3.42, and housing advocates are looking to DOUBLE the tax to $4.56.
Here’s a breakdown of how those proposals would affect your sale:
Say you’re selling your home for $350,000:
- Under the current real estate transfer tax of $2.28, you’d be responsible for paying $1,596 to the state.
- If Gov. Baker’s proposal for $3.42 is approved? You’d pay $2,394.
- If housing advocates have their way of doubling the tax? Your tax burden goes up to $3,192.
When selling your home, every dollar counts. Even if you support the initiatives this tax increase would support, you’ll want to know your bottom line when it comes to your financial picture in a real estate transaction. That’s why we’ll be keeping a close eye on the Legislature as they work to wrap up their business for the year. We’ll keep you posted!