Who Pays Durham’s Real Estate ‘Revenue Stamps’?

Confused about “revenue stamps” when selling or buying a home in Durham? You are not alone. This cost shows up on closing statements across North Carolina and can raise questions about who pays and how much it is. In a few minutes, you will understand what revenue stamps are, how to calculate them, and how they are handled in Durham closings. Let’s dive in.

What “revenue stamps” mean in Durham

In North Carolina, revenue stamps refer to the state excise tax on real estate transfers. The tax applies to deeds that convey property interests and must be paid before the deed is recorded. Under State law, the transferor, or seller, is responsible for the tax by default.

If you are recording in Durham, the Durham County Register of Deeds collects the tax at the time of recording and marks the deed to show it has been paid. The North Carolina Department of Revenue explains that registers now mark instruments rather than using adhesive stamps. You can review the legal framework in the session law and the state guidance for more detail.

• See the statute that sets the rate and who pays: North Carolina excise tax on conveyances
• See administrative guidance on how deeds are marked: North Carolina Department of Revenue guidance

Who pays at Durham closings

Legally, the seller owes the tax. In practice, most North Carolina closings show the seller paying revenue stamps, and it is deducted from seller proceeds. This is consistent with consumer closing cost summaries and with sample contract language used in the state.

• Buyer and seller can negotiate who pays in the purchase contract. Many contracts still allocate this cost to the seller. Always check your signed agreement.
• For custom and examples, see this overview: North Carolina closing cost norms
• Sample agreement language that allocates excise tax to the seller: Contract example with allocation

How to calculate the tax

North Carolina sets a simple, statewide rate: $1 for each $500 of the price, or fractional part. That equals $2 per $1,000, about 0.2 percent. You round up to the next $500.

Quick examples:

• $300,000 sale price → $600 tax.
• $361,000 sale price → $722 tax.
• $499,750 sale price → treat as $500,000 → $1,000 tax.

Reference: Statutory rate and rounding rule

How payment works at closing

• The tax is collected by the Durham County Register of Deeds when the deed is presented for recording. The office marks the deed to show payment.
• The closing attorney or title company usually brings the check and handles recording on your behalf. The amount appears as a line item on the closing statement.
• Procedures can vary by county office. Some require a separate check for the tax. Durham’s practical steps should be confirmed by your closing attorney before recording. State guidance notes that county offices control operational details such as how instruments are marked. See: NCDOR administrative overview

For an example of county-level recording instructions that illustrate how procedures can differ, review this sample page: County recording fees and requirements example

Exemptions and refunds

Not every deed is taxable. Common exemptions include transfers by will or intestacy, deeds of gift, certain mergers or consolidations, leases for a term of years, and instruments that secure debt. If an exemption applies, the deed should clearly state it. Review the statutory list here: Exemptions and statutory rules

If you overpay, the law provides a refund process through the county board of commissioners with specific timelines. Learn more here: Refund procedure overview

Seller checklist for Durham

• Confirm your contract allocates revenue stamps to you or to the buyer.
• Calculate the tax using 0.2 percent, rounding up to the next $500.
• Ask your closing attorney to verify Durham’s current recording and payment process.
• Make sure the closing statement shows the excise tax line.
• Keep your recorded deed and proof of payment.

Buyer checklist for Durham

• Check the contract to see if you agreed to pay revenue stamps.
• If you are paying, budget 0.2 percent of the purchase price.
• Confirm with your attorney that the recording plan and payment method are set.
• Review your closing statement before signing.

Common pitfalls to avoid

• Assuming the seller pays without checking the contract.
• Miscalculating by not rounding up to the next $500.
• Claiming an exemption that is not supported by the facts or documents.
• Bringing the wrong form of payment to recording.

When you want a clear, step-by-step closing in Durham, you deserve a bilingual, community-rooted team that understands local practice and investor-level details. For guidance on revenue stamps, closing costs, and strategy, connect with The Cedeno Group Real Estate.

FAQs

Who pays Durham revenue stamps at closing?

• Under state law the seller is responsible, and custom in North Carolina often follows that, but the purchase contract can shift payment to the buyer.

How do I calculate revenue stamps on a Durham home?

• Multiply the price by 0.002 or use $1 per $500, then round the price up to the next $500 if needed.

Can the buyer agree to pay the tax in Durham?

• Yes, payment is negotiable and should be stated in the purchase contract and reflected on the closing statement.

Are there exemptions to North Carolina revenue stamps?

• Yes, limited exemptions exist such as deeds of gift, certain estate transfers, leases, and instruments securing debt, and the deed should state the applicable exemption.

How is the tax actually paid at recording?

• Your closing attorney or title company tenders payment to the Durham County Register of Deeds and the office marks the deed to show the tax has been paid.