Georgia Intangible Recording Tax on a Refinance: How It Works
Most closing costs are negotiable, shoppable, or at least explainable. This one is a state tax, and it shows up on nearly every Georgia refinance without warning.
Georgia charges an intangible recording tax on long-term notes secured by real estate, at a rate of $1.50 for each $500 of the face amount of the note or any fraction of it, capped at $25,000 for any single note. On a refinance, an exemption applies only when the same lender refinances the same borrower, and only up to the unpaid principal of the original note. Because most refinances change lenders, most Georgia refinances pay it in full.
Here is how the tax is calculated, when it applies, and the narrow circumstances that eliminate it.
How much is the Georgia intangible recording tax?
The rate is $1.50 per $500 of the face amount of the note, or fractional part thereof (Georgia Department of Revenue, 2026). That works out to $3.00 per $1,000 borrowed.
Two details in that sentence do real work:
“Face amount of the note.” The tax is based on the loan amount, not the property value and not your equity.
“Or fractional part thereof.” Amounts round up to the next $500 increment. A $300,100 loan is taxed as though it were $300,500.
| Loan amount | Intangible tax |
|---|---|
| $150,000 | $450 |
| $200,000 | $600 |
| $250,000 | $750 |
| $300,000 | $900 |
| $400,000 | $1,200 |
| $500,000 | $1,500 |
| $832,750 | $2,499 |
The $25,000 cap. No single note is taxed more than $25,000, which is reached at roughly $8.33 million. For residential borrowers the cap is effectively theoretical.
Do you pay Georgia intangible tax on a refinance?
It applies to long-term notes secured by Georgia real property. Practically, that means it applies to:
- Purchase mortgages
- Most refinances
- Cash-out refinances, on the full new note amount
- Construction-to-permanent loans
- Home equity loans and second mortgages structured as long-term notes
The tax is collected by the clerk of the Superior Court in the county where the security deed is recorded, and it must be paid before the deed can be recorded.
Is the intangible tax based on the loan amount or the home value?
Georgia does not require intangible recording tax on the portion of a new long-term note that represents a refinancing by the original lender of the original borrower of unpaid principal on an existing instrument, provided intangible tax was paid on the original instrument.
Every element of that has to be true:
| Condition | What it means |
|---|---|
| Original lender | The same lender that holds the existing note. Not a new lender. Not, in most cases, a new servicer. |
| Original borrower | The same borrower. Adding or removing a borrower can break this. |
| Unpaid principal only | The exemption covers your current balance. Anything above it is taxable. |
| Tax paid originally | Intangible tax must have been paid when the original note was recorded. |
Why most refinances do not qualify. Refinancing usually means shopping — and shopping usually means a different lender. The moment the lender changes, the exemption is gone.
Cash-out is partially taxable at best. If you owe $250,000 and refinance into $320,000, the $70,000 above your existing principal is taxable even if every other condition is met.
The most common misunderstanding: borrowers conflate servicer with lender. The company you mail payments to is often not the entity that holds the note. Assuming the exemption applies because “it’s the same company” is how this becomes a surprise at the closing table rather than a known number at application. Ask about it when you apply — the answer is knowable on day one.
Do you pay intangible tax on the cash-out portion of a refinance?
The tax applies to long-term notes. Short-term notes are exempt.
Georgia recently amended the threshold: a loan is treated as short-term, and exempt, when the principal balance is due within 62 months of origination — up from the previous 36 months.
For a homeowner refinancing into a 15- or 30-year mortgage, this does not apply. It matters for bridge financing, lot loans, and other short-horizon structures.
Who collects the Georgia intangible recording tax?
Certain instruments and certain lenders fall outside the tax. Georgia’s rules exempt specified categories of instruments and holders.
If you believe an exemption may apply to your situation, raise it with your closing attorney early. Exemption determinations are made at recording, and the clerk’s office applies the statute.
How it affects your refinance math
The intangible tax is a real cost, and it belongs in your break-even calculation.
A worked example. You are refinancing $300,000. Intangible tax is $900. Add attorney fee, lender’s title insurance, appraisal, credit report, lender fees, and recording fees — say your total fees come to $4,500.
If the new loan lowers your payment by $180 a month, break-even is 25 months. The intangible tax alone accounts for roughly five of those months.
That is not an argument against refinancing. It is an argument for knowing the number before you apply rather than at the closing table.
Practical steps
- Ask at application whether the exemption could apply to your file. Your loan originator can determine this early.
- Confirm who actually holds your note, not just who services it.
- On a cash-out, calculate the tax on the full new amount. The taxable portion is not just the cash you are taking.
- Include it in your break-even, not in the “prepaids” bucket. It is a true cost.
- Ask your closing attorney about the reissue rate on lender’s title insurance while you are at it — a separate savings opportunity most borrowers do not raise.
Contact us today and we will tell you your intangible tax figure up front, along with everything else that goes into whether a refinance actually makes sense for you.
Frequently asked questions
How do I calculate Georgia intangible tax on my loan?
Divide your loan amount by $500, round up to the next whole number, and multiply by $1.50. For a $300,000 loan: 300,000 ÷ 500 = 600, times $1.50 equals $900. The maximum on any single note is $25,000.
Can I avoid the intangible tax by refinancing with my current servicer?
Not necessarily. The exemption requires the original lender — the entity holding the note — not the servicer collecting your payments. Those are frequently different companies. Confirm who holds your note before assuming the exemption applies.
Does the intangible tax apply to a home equity loan or second mortgage?
Generally yes, when the instrument is a long-term note secured by Georgia real property. The tax is calculated on the face amount of that note. Ask your closing attorney about your specific instrument.
Is the intangible tax the same as the transfer tax?
No. They are separate. The transfer tax is charged on the deed, based on the value conveyed in a sale. The intangible recording tax is charged on the security deed, based on the loan amount. On a refinance there is no sale, so there is no transfer tax — but the intangible tax still applies.
What is the 62-month rule?
Georgia’s intangible tax applies to long-term notes. A loan whose principal balance is due within 62 months of origination is treated as short-term and exempt. This threshold was increased from 36 months. Standard 15- and 30-year mortgages are long-term and remain subject to the tax.
Can the intangible tax be rolled into my loan?
It is a closing cost, so it can typically be financed the way other closing costs are, subject to program and equity limits. You still pay it, and you pay interest on it for the life of the loan. Include it in your break-even either way.
Does the intangible tax apply in every Georgia county?
It is a state tax collected at the county level by the Superior Court clerk, so it applies statewide. County recording fees are separate and follow Georgia’s flat recording fee structure.
Is the intangible tax deductible on my income taxes?
That is a question for a tax professional, and the answer depends on your circumstances and current federal rules. Georgia Platinum Mortgage is a mortgage broker, not a tax advisor. Ask your CPA before assuming any deduction.
Written by Wrx Kimura, Mortgage Loan Originator, NMLS #2759723 Wrx Kimura originates residential mortgages for Georgia Platinum Mortgage, a licensed mortgage broker that compares loan options across a wide panel of wholesale lenders for homeowners in Georgia, Alabama, Tennessee, Florida, and Texas.
Georgia Platinum Mortgage — NMLS #144366
Last reviewed: August 2026
Georgia Platinum Mortgage is a mortgage broker and does not fund loans. This article is educational and is not a loan commitment, an offer of credit, a quote of terms, or tax advice. Tax statutes and exemptions change; confirm current rules with the Georgia Department of Revenue or your closing attorney before relying on this article. Equal Housing Opportunity.