State Intangible Tax on New Mortgages

State Intangible Tax on New MortgagesThe state intangible tax is a specific fee levied on "new" money borrowed to purchase real estate. It applies exclusively to new mortgage loans originating at the time of closing; it does not apply if a buyer is assuming a seller's existing mortgage. This tax is distinct because it targets the value of the debt obligation rather than the physical property. Because this tax is directly related to the buyer’s financing, it is almost always paid by the buyer at closing. It is calculated based on the total amount of the new loan.