Where this fits on the exam
| 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.
- If the taxable consideration or value is $100 or less, the transfer tax is zero. Otherwise charge $1 for the first $1,000 or fractional part.
- For a base above $1,000, subtract $1,000, divide the remainder by $100, and round any fractional unit up. There are no additional units when the base is $1,000 or less.
- 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.
- A. Incorrect. $411.60 is the additional-unit charge before the required $1 for the first $1,000 is added.
- B. Incorrect. $412.50 drops the fractional additional $100 unit, which must count as a whole unit.
- C. Incorrect. $412.55 uses a flat 0.1% shortcut rather than counting the fractional statutory unit.
- D. Correct. The $411,550 remainder requires 4,116 units; $1 plus $411.60 equals $412.60.
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.
- A. Correct. Exclude the $260,000 pre-existing lien that remains; tax the $90,000 consideration base to obtain $90.
- B. Incorrect. $260 taxes the excluded surviving debt instead of the remaining taxable consideration.
- C. Incorrect. $350 taxes the full price and ignores the exclusion for the pre-existing lien left in place.
- D. Incorrect. $900 is ten times the tax on the $90,000 consideration base.
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.
- A. Correct. DOR identifies the seller as liable even when the contract makes the buyer pay the charge.
- B. Incorrect. The agreement can allocate payment to the buyer without changing DOR's stated seller liability.
- C. Incorrect. Collecting and remitting the tax does not make the closing attorney the liable seller.
- D. Incorrect. Recording a new loan security deed does not make the lender liable for the seller's deed-transfer tax.
Question 4After all applicable exclusions, a Georgia deed has a taxable consideration or value of exactly $100. There is no higher substituted value. How much transfer tax is due?
- A. $0
- B. $0.10
- C. $1
- D. $100
Show answer and explanation →
Answer: A. $0
Section 48-6-1 imposes the tax when the taxable consideration or value exceeds $100. Exactly $100 does not exceed the threshold, so no transfer tax is due. This assumes $100 is the actual tax base, not merely nominal consideration printed on the deed.
- A. Correct. Exactly $100 is within the no-tax threshold, so the charge is zero.
- B. Incorrect. $0.10 applies a flat 0.1% shortcut before checking whether the tax applies.
- C. Incorrect. The initial $1 charge applies only after the taxable base exceeds $100.
- D. Incorrect. $100 is the tax base, not a transfer-tax charge.
Question 5After all applicable exclusions, a Georgia deed has a taxable consideration or value of $100.01. No separate exemption applies. How much transfer tax is due?
- A. $0
- B. $0.01
- C. $0.10
- D. $1
Show answer and explanation →
Answer: D. $1
The base exceeds $100, so the tax applies. The initial $1 covers the first $1,000 or fractional part. With a $100.01 base, there are no additional $100 units above $1,000, and the total tax is $1. The $100 threshold is not a deductible allowance.
- A. Incorrect. $100.01 exceeds the no-tax threshold, so the charge is not zero.
- B. Incorrect. The one-cent excess triggers the tax; it is not itself the amount of tax.
- C. Incorrect. $0.10 uses an approximate percentage instead of the statutory initial charge.
- D. Correct. A base above $100 but no more than $1,000 carries the initial $1 charge.
Ready to move on?
You have this calculation down when all of these are true.
- I check the $100 threshold before counting taxable units.
- 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.