When you sell real estate in West Virginia, the transfer itself is taxed, and the rules are different from Virginia’s. West Virginia does not have a grantor’s tax by that name. Instead it charges an excise tax on the transfer, the seller usually pays it, and the deed has to state the price. Here is how the West Virginia transfer tax works.
Written by Adam L. Engel, Esq., Principal and real estate attorney at Prime Title & Escrow
I close in both states, and sellers crossing the line are often surprised that the tax on the transfer is structured differently here. The amount is not huge on most homes, but it is real money, and it belongs on your closing statement correctly. Let me explain what it is, who pays, and how it is figured.
What the tax is
West Virginia charges an excise tax on the privilege of transferring real estate. It applies when a deed conveys property from one owner to another, and it is based on the consideration, the price paid, or the value of the property being transferred. It is the West Virginia counterpart to the taxes Virginia charges when a deed records, though Virginia splits its version into a grantor’s tax and a recordation tax. I cover the Virginia side in the Virginia grantor’s tax and Virginia recordation tax if you want to compare.
A state portion and a county portion
West Virginia sets a state excise tax rate, and most counties add their own county portion on top of it. Because the county piece varies, the combined rate depends on the county where the property sits, so two otherwise identical sales can carry a different transfer tax in different counties. The current combined figure for your county is something I confirm with that county clerk before closing, so the number on your statement is right rather than a guess.
Who pays it
In a typical West Virginia sale, the seller, as the grantor, pays the transfer tax. Like most closing costs, that is the customary arrangement rather than an unbreakable rule, and a contract can shift who bears it, but in the ordinary case it is a seller cost. I account for it on the seller’s side of the closing statement, the way I describe in a home seller’s guide to closing in West Virginia.
The declaration of consideration
West Virginia requires a declaration of the consideration or value on the deed, a statement of what was paid or what the property is worth, which is what the tax is calculated on. It is signed and becomes part of the recorded record. Getting it right matters, because the clerk uses it to figure the tax, and an inaccurate statement is not something to improvise. I prepare it correctly as part of the deed.
When and where it is paid
The transfer tax is collected by the county clerk at the time the deed is recorded, in the county where the property sits. In practice it is handled at closing and paid through settlement, so the deed can record cleanly. This is the same county clerk that keeps the land records, which I cover in recording a deed in West Virginia.
How this fits your other costs
The transfer tax is one line among several on a West Virginia closing. Recording fees, the title search and title insurance, and the property tax proration all sit alongside it. I lay the whole picture out in what is different about closing in West Virginia, and the property tax piece in West Virginia property taxes at closing.
How I help
I calculate the transfer tax for your county, prepare the declaration of consideration on the deed, and put the charge where it belongs on your closing statement, so there are no surprises at the table. If your sale is tied to a purchase across the line in Virginia, I handle both sides so the figures on each are correct.
Send me your contract and I will confirm the transfer tax for your county, prepare the deed and its declaration of consideration, and give you a clear closing statement.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
Does West Virginia have a real estate transfer tax?
Yes. West Virginia charges an excise tax on the transfer of real estate, applied when a deed conveys property from one owner to another. It is based on the price paid or the value of the property, and the deed must carry a declaration of that consideration or value.
Who pays the transfer tax in West Virginia?
In a typical sale the seller, as the grantor, pays the transfer tax. That is the customary arrangement rather than an unbreakable rule, and a contract can shift who bears it, but in the ordinary case it is a seller cost that appears on the seller’s side of the closing statement.
How much is the West Virginia transfer tax?
It is set as a state rate, and most counties add their own county portion on top, so the combined amount depends on the county where the property sits. Because the county piece varies, I confirm the current combined rate with the county clerk for your county so the figure on your closing statement is accurate.
Is the West Virginia transfer tax the same as Virginia’s grantor’s tax?
It serves a similar purpose but is structured differently. Virginia splits its version into a grantor’s tax on the seller and a recordation tax on the buyer. West Virginia handles it as a single excise tax on the transfer, generally paid by the seller, with a state portion and a county portion.
What is a declaration of consideration?
It is a statement on the deed of what was paid for the property or what it is worth, which is what the transfer tax is calculated on. It is signed and becomes part of the recorded record, and the county clerk uses it to figure the tax, so it has to be accurate.
When is the West Virginia transfer tax paid?
It is collected by the county clerk when the deed is recorded, in the county where the property sits. In practice it is handled at closing and paid through settlement so the deed can record cleanly.
This article is general information about the West Virginia real estate transfer tax. It is not legal or tax advice for your specific transaction, and the state and county rates can change, so the current combined figure should be confirmed for your county. Please confirm the details that apply to your closing with me directly.