Transfer Tax Law and Legal Definition
Transfer tax refers to a type of tax levied when a title of property is transferred. It is actually a transaction fee, for transferring the property’s title form one person to another. Generally, transfer tax is imposed when there is a legal requirement for registration of transfer. In the U.S. there are different types of transfer tax that involves a certain payment on the transfer of a property title, they are:
1.Estate tax;
2.Gift tax;
3.Capital gains tax;
4.Sales tax on goods excluding the sales tax payment on services; and
5.Certain use taxes
In the U.S., transfer taxes can be levied at the federal, state and local levels, depending on the type of property being transferred.
