What is the exam-ready answer?
| Official syllabus topic | Georgia Supplement III.B Closing Procedures and XI.A.4 Real property transfer fees |
|---|---|
| Official PSI area | Finance and Closing |
| Published weight | 15 of the 52 Georgia questions |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual calculation. Follow the stated facts, units, time basis, and rounding instruction.
Formula and variables
| Symbol or term | Meaning |
|---|---|
| Taxable consideration | The deed-transfer consideration after any exclusion or exemption stated in the problem |
| Additional $100 units | The amount above the first $1,000, divided by $100 and rounded up for any fraction |
Step-by-step method
- Identify the taxable transfer consideration, not the secured loan amount.
- Charge $1 for the first $1,000 or fractional part when positive taxable consideration exists.
- Subtract the first $1,000, divide the remainder by $100, and round any fractional unit up.
- Multiply additional units by $0.10 and add the first-dollar charge.
- Keep statutory liability separate from a contract term allocating who will write the check.
Georgia-specific distinction
Worked examples
Example 1: Exact $100 units
Scenario. Taxable consideration is $340,400.
- First $1,000 charge = $1.
- Remainder = $340,400 - $1,000 = $339,400.
- $339,400 / $100 = 3,394 additional units.
- Tax = $1 + 3,394 x $0.10 = $340.40.
Answer. Georgia transfer tax is $340.40.
Reasonableness check. At approximately $1 per $1,000, the tax should be approximately $340, not $3,400.
Example 2: Fractional unit rounds up
Scenario. Taxable consideration is $285,650.
- First $1,000 charge = $1.
- Remainder = $284,650.
- $284,650 / $100 = 2,846.5, which rounds up to 2,847 statutory units.
- Tax = $1 + 2,847 x $0.10 = $285.70.
Answer. Georgia transfer tax is $285.70.
Reasonableness check. Rounding the half unit down would underpay the statutory fraction by $0.10.
Common exam traps
- Using the loan amount instead of taxable transfer consideration
- Rounding a fractional $100 unit down
- Multiplying every $1,000 by $1 without handling a fractional additional $100
- Treating the seller's statutory liability as a ban on contractual allocation
Original practice questions with detailed explanations
These original instructional questions map to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Write the setup before opening the explanation.
Question 1A Georgia deed transfers for taxable consideration of $412,550. What is the transfer tax?
- A. $411.60
- B. $412.50
- C. $412.55
- D. $412.60
Show answer and explanation →
Answer: D. $412.60
The first $1,000 costs $1. The remaining $411,550 is 4,115.5 units of $100, which rounds up to 4,116, adding $411.60, for $412.60 in total. $412.50 rounds the half unit down, but any fractional $100 counts as a full unit.
Question 2A buyer pays $350,000 for a Georgia home: $90,000 in cash and $260,000 by taking title subject to the seller's existing security deed, which stays of record. What is the transfer tax?
- A. $90
- B. $260
- C. $350
- D. $900
Show answer and explanation →
Answer: A. $90
Liens that existed before the sale and are not removed by it are excluded, so the taxable consideration is $90,000. That is $1 for the first $1,000 plus 890 units at $0.10, or $90. $350 taxes the full price, forgetting the exclusion for the surviving loan.
Question 3A Georgia purchase contract says the buyer will pay the transfer tax at closing. According to the Georgia Department of Revenue, who is liable for the tax?
- A. The seller, even though the contract shifts payment to the buyer
- B. The buyer, because the contract assigns the payment to the buyer
- C. The closing attorney, who collects the tax at closing
- D. The lender, whose security deed is recorded at closing
Show answer and explanation →
Answer: A. The seller, even though the contract shifts payment to the buyer
The Georgia Department of Revenue treats the seller as liable for the transfer tax, although the parties often agree in the contract that the buyer will pay it. The contract changes who writes the check, not who the Department looks to. Picking the buyer confuses the contract's allocation with the tax liability.
Ready to move on?
You have this calculation down when all of these are true.
- I use taxable consideration rather than the note amount.
- I can apply the first-$1,000 and additional-$100 structure.
- I always round a fractional statutory unit up.
- I distinguish statutory liability from contract allocation.
- I can estimate roughly $1 per $1,000 to catch a misplaced decimal.
Recommended next lesson
Continue with Georgia Intangible Recording-Tax Calculation. The transfer tax follows the deed's consideration, and the next lesson taxes the note instead, at $1.50 per $500 with a $25,000 cap, so you can tell the two Georgia taxes apart in one stem.
Return to the complete calculation hub, formula sheet, or mixed math drill.