Virginia State and Local Recordation Taxes, Grantor Tax and Regional Closing Fees
Updated October 2026
Virginia closing costs include several taxes that sound similar but apply to different instruments or parties. A purchase may involve tax on the deed, tax on the deed of trust securing the mortgage, and seller-side grantor charges. Dogwood & Dormer separates these items so buyers do not mistake one recordation estimate for the entire settlement bill.
Understand state and local recordation
The general state recordation rate is $0.25 per $100, or fraction thereof, of the applicable taxable amount. For a deed, the tax generally uses consideration or actual value, whichever is greater. For a deed of trust, the secured debt is generally the starting point, with exemptions and special calculations affecting some transactions.
A locality may impose an additional recordation tax equal to one-third of the state amount. When both apply at those rates, the combined charge is approximately $0.3333 per $100.
For a straightforward $400,000 taxable instrument, that means $1,000 in state tax plus approximately $333.33 locally. A purchase deed and a mortgage deed of trust are separate instruments; this example does not combine their charges.
The Virginia Department of Taxation is the official starting point for recordation tax rules and exemptions.
Distinguish grantor and regional charges
Grantor tax is separate from the buyer’s general deed recordation calculation. Regional congestion or transportation-related charges can also apply in designated areas, including parts of Northern Virginia and Hampton Roads. Their rates, taxable bases, and geographic coverage should be identified separately.
Ask the settlement agent to provide an itemized estimate showing:
- Each taxable instrument and the amount used to calculate its tax.
- State and local recordation charges separately.
- Grantor tax and applicable regional assessments.
- Which party pays each charge under the contract.
- Any exemption or refinance treatment included in the calculation.
Do not assume a VA mortgage removes every recording expense or that a refinance receives the same treatment as a purchase.
Reconcile the estimate before signing
Taxes are only part of cash to close. Title services, recording fees, prepaid interest, insurance, escrow deposits, and association charges belong in the same budget but should not be mislabeled as recordation taxes.
Use the closing cost estimator for planning, then compare the Loan Estimate with the Closing Disclosure using guidance from the Consumer Financial Protection Bureau.
Finally, review the settlement and resale certificate guide so tax questions are resolved before funding and recording deadlines arrive.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Virginia State and Local Recordation Taxes, Grantor Tax and Regional Closing Fees — Separate monthly debt-service-to-income from upfront cash: down payment plus fees and prepaids, less deposits and approved credits. Avoid counting earnest money twice.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.