When you sell a home in Virginia, two taxes attach to the deed before it can be recorded: the grantor tax, which the Code puts on the seller, and the recordation tax, which is based on the price or the assessment. Neither shows up in the listing price, and both appear as lines on the settlement statement. This guide walks through the statutes, then runs a hypothetical $475,000 sale through them so a Midlothian, Bon Air or Henrico seller can see the scale. The rates come from the Code of Virginia as we read it in October 2026. The numbers in the example are an illustration, not a quote, and your closing attorney or title company prepares the real figures.
What the Code says
Virginia deed taxes at a glance
| Tax | Rate in the Code | Who the statute names |
|---|---|---|
| Grantor tax, § 58.1-802 | 50 cents for each $500 or fraction thereof, when the value exceeds $100 | The grantor (seller), unless the parties agree the grantee will pay part or all |
| State recordation tax, § 58.1-801 | 25 cents on every $100 or fraction thereof of the greater of the consideration or the most recent assessment | The statute sets the rate; who pays is a matter of the contract and local custom |
| Local recordation tax, § 58.1-814 | A city or county may impose an amount equal to one-third of the state recordation tax | Depends on whether the locality has adopted it |
Two details matter. First, the recordation tax is measured on the higher of the price paid or the most recent property tax assessment at the time of conveyance. A home that sells below its assessment can therefore be taxed on the assessment. Second, the statute lets the buyer and seller agree to shift the grantor tax, so a purchase contract can change who writes that check.
A worked example: a hypothetical $475,000 sale
Suppose a Chesterfield County home sells for $475,000 and the most recent assessment is lower, so the sale price controls. The grantor tax is 50 cents for each $500, which is 950 units of $500, or $475. The state recordation tax is 25 cents for each $100, which is 4,750 units of $100, or $1,187.50. If the locality imposed the full one-third local tax, that would add up to about $395.83. Whether a particular county or city does so is a question for your settlement agent, because we did not verify each locality’s adoption for this post.
Hypothetical $475,000 sale, using the Code rates above
| Line | Calculation | Amount |
|---|---|---|
| Grantor tax | 950 x $0.50 | $475.00 |
| State recordation tax | 4,750 x $0.25 | $1,187.50 |
| Local recordation tax, if imposed at the maximum | One-third of the state amount | Up to $395.83 |
This is an illustration for a made-up sale, not a quote for any property.
Why it matters when you price and negotiate
The grantor tax is small next to commission and repairs, but it is a real cost that belongs on a net-proceeds sheet. Our guide to the cost to sell a house in Richmond puts it beside the other closing costs, and our walkthrough of prorations on a Richmond closing statement covers the line items that depend on the closing date. If the real estate tax bill is part of your planning, see when real estate tax is due around Richmond and how the same $475,000 house produces six different tax bills.
Buyers should read the same table from the other side. The recordation tax is based on the greater of price and assessment, so a buyer who negotiates a price well below assessment should expect the tax to follow the assessment. If you think the assessment itself is wrong, how to appeal your assessment explains the process.
Who pays in practice
The statute puts the grantor tax on the seller, and most contracts follow that default. The recordation tax is set by statute but the allocation is a contract and custom question, and in our experience it often falls on the buyer. Treat that as a general observation and confirm it in your own contract. A seller who wants a clean net figure should ask the title company for an estimated settlement statement before accepting an offer, and a buyer should do the same before closing.
Questions to ask your settlement agent
Ask whether your county or city imposes the local recordation tax and at what rate. Ask whether anything on the statement is based on the assessment instead of the price. Ask who is paying the grantor tax under your contract. And ask when the statement will be ready, because numbers settle late in the process. If you are working with a local agent, we list Chesterfield County agents and Henrico County agents on separate pages, and our community guides for Midlothian, Bon Air and Woodlake cover the areas where many of these sales happen.
Get our closing-timeline checklist
Selling this fall? Ask us for the Mission Realty closing-timeline checklist, which shows where deed taxes, prorations and other date-driven items fall between contract and closing. Call (804) 601-4960, or start with our neighborhood guides.
Frequently asked questions about Virginia deed taxes at closing
What is the grantor tax in Virginia?
It is a tax of 50 cents for each $500 or fraction thereof on a deed when the value exceeds $100. The Code names the grantor as the payer, though the parties may agree the buyer pays part or all.
What is the recordation tax on a Virginia deed?
The state rate is 25 cents on every $100 or fraction thereof, applied to the greater of the consideration or the most recent assessment.
Is the recordation tax based on the sale price or the assessment?
On whichever is higher at the time the property is conveyed, according to the Code.
Can a locality add its own recordation tax?
Yes. A city or county may impose a local recordation tax equal to one-third of the state tax. Ask your settlement agent whether your locality has done so.
How much is the grantor tax on a $475,000 sale?
Using the rate in the Code, the hypothetical example comes to $475. Your settlement statement controls.
Who usually pays the recordation tax?
The statute sets the rate but not the allocation. It is often paid by the buyer in practice, but your contract governs.
Can the buyer and seller agree to split the grantor tax?
Yes. The Code lets the grantor and grantee agree that the grantee will pay part or all of it.
Where do these taxes appear at closing?
They appear as charges on the settlement statement prepared by your closing attorney or title company, who also records the deed.
