Virginia Beach Transfer Taxes: What Great Neck Sellers Owe

Great Neck sellers in Virginia Beach pay two deed-related taxes at closing: the grantor's tax and the state recordation tax. Both are calculated on the greater of the sale price or the property's assessed value, and both are set by Virginia statute. Who actually pays each one is a matter of contract negotiation, not a fixed rule, so your specific obligation depends on how your purchase agreement reads.

What transfer taxes do sellers pay in Virginia Beach?

Great Neck sellers in Virginia Beach pay two deed-related taxes at closing: the grantor's tax and the state recordation tax. Both are calculated on the greater of the sale price or the property's assessed value, and both are set by Virginia statute. Who actually pays each one is a matter of contract negotiation, not a fixed rule, so your specific obligation depends on how your purchase agreement reads.

Here's what every Great Neck seller should understand before they get to the closing table.

The Two Taxes Virginia Sellers Need to Know

Virginia does not have a single "transfer tax" the way some states do. Instead, there are two separate charges tied to the deed, each with its own statutory basis and rate structure.

The Grantor's Tax

The grantor's tax is authorized under Virginia Code § 58.1-802. It is imposed on the grantor (the seller) at the time the deed is recorded with the Virginia Circuit Court Clerk's office. The tax is calculated on the greater of the sale price or the assessed value of the property.

Virginia also authorizes localities to impose an additional local grantor's tax under § 58.1-802. The City of Virginia Beach does levy this local component, which stacks on top of the state rate. The combined grantor's tax is a seller-side charge by statute, though as with most closing costs in Virginia, the contract can shift responsibility.

The Recordation Tax

The recordation tax is the second deed tax, governed by Virginia Code § 58.1-801. It is technically imposed on the instrument being recorded, not on either party specifically, which is why it is commonly negotiated between buyer and seller. In practice, different deals allocate it differently. Your contract language controls.

Both taxes are collected at closing by the settlement agent and remitted when the deed is recorded. You won't write a separate check to the city; it flows through your closing disclosure.

For the current published rates, the Virginia Department of Taxation's deed recordation tax page is the authoritative source. Rates are expressed per $100 of value, and the Virginia REALTORS® association also maintains guidance for members on how these taxes apply in residential transactions.

How the Tax Base Is Determined

Both taxes use the same base: the greater of the sale price or the assessed value. This matters in Virginia Beach, where assessed values have risen significantly. If your home sells below its current assessed value, the tax is calculated on the assessed value, not the sale price. Your settlement agent will verify this using the Virginia Beach Commissioner of the Revenue's real estate records.

Who Actually Pays, and What's Negotiable

This is where sellers get tripped up. The grantor's tax is named for the seller, which leads many people to assume it's a fixed seller cost. The recordation tax sounds neutral. In reality, both are negotiable in the purchase contract. In Great Neck, where waterfront and water-view properties often carry assessed values that have climbed sharply, this negotiation can move real dollars. I've seen deals in Great Neck and Alanton structured every way imaginable depending on market conditions, property type, and buyer leverage.

Under a standard Virginia REALTORS® purchase contract, the default allocation for each tax is stated in the agreement, but the parties can modify it. In a strong seller's market, sellers rarely concede on tax allocation. In a softer market or on a property that needs work, a buyer may negotiate for the seller to cover a larger share of closing costs, including the recordation tax.

The bottom line: never assume your tax obligation based on the name of the tax. Read your contract, and confirm the allocation with your settlement attorney or closing officer before you finalize anything.

Exemptions Worth Knowing

Virginia law does provide exemptions from deed recordation taxes in certain circumstances. Transfers between spouses, certain transfers to trusts, and other qualifying conveyances may be partially or fully exempt. These exemptions are codified in Virginia Code § 58.1-811. If your transaction involves a trust, an estate, a divorce settlement, or an intra-family transfer, ask your real estate attorney whether an exemption applies before you close.

Virginia Beach Deed Tax Reference

The table below summarizes the two deed taxes Virginia Beach sellers encounter. Rates are set by Virginia statute; confirm current figures with the Virginia Department of Taxation or your settlement agent before closing, as legislative changes can affect rates.

The deed is recorded with the Virginia Beach Circuit Court Clerk. Your settlement agent handles the mechanics; your job is to understand what you agreed to in the contract.

One more thing worth flagging: Great Neck assessments have tracked home price appreciation closely over the past several years, and waterfront and water-view properties in the neighborhood have seen some of the sharpest increases in the city. According to the Virginia Beach Commissioner of the Revenue, assessed values are updated annually, so a home assessed at a higher value than its sale price is not unusual, particularly in higher price ranges or on properties with deferred maintenance. That gap directly affects your tax calculation, which is one reason I always pull the current assessment early in the listing process for every Great Neck seller I work with.

For broader Hampton Roads market context, the Real Estate Information Network (REIN), the regional MLS, tracks median sale prices and market conditions across Virginia Beach and surrounding cities. Your settlement agent will use the actual recorded sale price and the current assessment to determine which figure applies to your deed taxes.

If you want to understand the full picture of what you'll net from your Great Neck sale, including deed taxes, title charges, prorated property taxes, any HOA transfer fees, and broker compensation (which is fully negotiable and not set by law), that's exactly the conversation I have with every seller before we go to market. Great Neck properties carry enough complexity, from waterfront assessments to dock and riparian considerations, that a personalized net sheet is the only way to see your real number.

Frequently Asked Questions

How much is the transfer tax in Virginia Beach?

Virginia Beach sellers pay a grantor's tax (state plus a local component authorized under Va. Code § 58.1-802) and a recordation tax (Va. Code § 58.1-801), both calculated on the greater of the sale price or assessed value. Rates are expressed per $100 of value and set by Virginia statute. For current published rates, check the Virginia Department of Taxation or confirm with your settlement agent, since legislative changes can affect the figures.

Does the seller or the buyer pay the recordation tax in Virginia?

The recordation tax is imposed on the instrument being recorded, not on either party specifically, which means it is commonly negotiated in the purchase contract. The grantor's tax is named for the seller and is typically a seller cost by default, but it too can be shifted by contract. Your actual obligation depends on how your purchase agreement reads, so confirm the allocation with your settlement attorney before closing.

What is the tax base for Virginia deed taxes?

Both the grantor's tax and the recordation tax are calculated on the greater of the sale price or the property's current assessed value. In Virginia Beach, where annual assessments have risen alongside home prices, your assessed value may be higher than your sale price in some situations, which would increase the tax base. Your settlement agent will verify the current assessment through the Virginia Beach Commissioner of the Revenue.

Are there exemptions from Virginia deed recordation taxes?

Yes. Virginia Code § 58.1-811 lists qualifying exemptions, including certain transfers between spouses, transfers to revocable trusts, and other specific conveyances. If your transaction involves a trust, an estate, a divorce settlement, or an intra-family transfer, ask your real estate attorney whether an exemption applies before closing.

When are Virginia Beach deed taxes paid?

Both taxes are collected at closing by your settlement agent and remitted when the deed is recorded with the Virginia Beach Circuit Court Clerk. They appear as line items on your closing disclosure. You do not pay them separately to the city or state; the settlement agent handles the remittance on your behalf.

Understanding what you owe at closing starts with knowing which taxes apply, how they're calculated, and what your contract actually says. If you're thinking about selling in Great Neck, Alanton, or any of the surrounding Virginia Beach coastal neighborhoods, I walk every seller through a full net-sheet analysis before we list, so there are no surprises at the table.

Call me directly at 757-502-5077 to talk through your situation, or download the Great Neck Insider Report for a closer look at how this market is moving right now.

This article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Tax rates, exemptions, and contract allocations vary by transaction; confirm your specific numbers with your real estate attorney, tax advisor, lender, or settlement/closing officer. Equal Housing Opportunity. Andrew Christie, Virginia Real Estate License #0225199734, Virginia DPOR. Brokerage: Atlantic Sotheby's International Realty. Broker fees and commissions are fully negotiable and not set by law.