What is different in North Carolina:
- North Carolina taxes the transfer of real estate with an excise tax of $1 on each $500 of the price.
- The state describes it as paid by the transferor (the seller) to the register of deeds before the deed is recorded.
- The North Carolina Housing Finance Agency offers down payment help, including $15,000 for eligible first-time buyers.
Most closing costs are the same in every state: the lender's fees, the appraisal, title services, prepaid interest, and deposits for taxes and insurance. The Consumer Financial Protection Bureau says closing costs typically run 2% to 5% of the price. This page covers what is specific to North Carolina: its transfer and recording taxes, who owes them, and its property tax level. Every fact comes from an official page listed under Sources, and we say so where a rule depends on your contract or county.
The excise tax on conveyances
According to the North Carolina Department of Revenue, an excise tax is levied on each instrument by which an interest in real property is conveyed to another person. The rate is $1 on each $500, or fractional part of $500, of the consideration or value. The Department says the tax is paid by the transferor to the register of deeds of the county before the instrument is recorded. The transferor in a sale is the seller, so by the state's description a buyer does not owe this tax unless the contract says otherwise.
On a $350,000 sale the tax is $700. Half of the proceeds go to the county's general fund, and the rest is shared with the state, which puts money into parks and natural heritage funds.
Property taxes
The Tax Foundation's table, built from the Census Bureau's 2024 American Community Survey, puts North Carolina's effective property tax rate on owner-occupied housing at 0.66%, one of the lower rates among the states. On a $350,000 home that is about $2,310 a year. County and city rates differ, so look up the actual bill for your home when you plan prepaid taxes and escrow.
Down payment help from the state housing agency
The North Carolina Housing Finance Agency (NCHFA) describes several options on its home buyer page:
- The NC Home Advantage Mortgage offers down payment assistance of up to 3% of the loan amount for first-time and move-up buyers.
- The NC 1st Home Advantage Down Payment offers $15,000 in down payment help to eligible first-time buyers (people who have not owned a home as their principal residence in the past three years) and to military veterans.
- Through its Community Partners Loan Pool, buyers with income below 80% of the county median may be eligible for up to 25% of the sales price in down payment help, with a maximum loan of $50,000.
Rules, income limits and rates change, and lenders must be approved by the agency, so confirm current terms on the NCHFA home buyers page. You can also talk to a HUD-approved housing counselor (1-800-569-4287).
Example: cash to close on a $350,000 home in North Carolina
The example uses a $350,000 home, $17,500 down (5%) and a $332,500 loan at 6.5%, with the same placeholder lender and title costs as our closing cost calculator, and North Carolina's effective property tax rate of 0.66% for the prepaid taxes and escrow. Before any of the state taxes in the table below, the closing costs come to $10,433 (3.0% of the price) and the cash to close is $27,933. The rows below show what the state's taxes could add.
| If the buyer pays | Extra | Closing costs | Cash to close |
|---|---|---|---|
| As the state describes it: seller pays the excise tax Paid by the transferor to the register of deeds | $0 | $10,433 | $27,933 |
| Your contract makes you pay the excise tax Contracts can move costs between buyer and seller | $700 | $11,133 | $28,633 |
These are illustrations, not quotes. Your lender, your title company and your county set the real amounts, and your Loan Estimate is the document to trust. Open this example in the closing cost calculator and change the numbers to match your offer. Add any state tax you will pay in its "Other" box. See how to read a Loan Estimate to check each line.
Questions to ask before you close in North Carolina
- Who pays the transfer or recording taxes under our contract, and what is the total including any county or local amount?
- Which of these taxes will appear on my Loan Estimate and Closing Disclosure, and in which section?
- What is the actual property tax bill for this home, and how will taxes be escrowed?
- Is any first-time buyer or down payment program available for this home and my income?
Keep going with the first-time home buyer guide, compare lender offers with the loan offer comparison calculator, and see the other state guides.
Sources
- North Carolina Department of Revenue: Excise Stamp Tax on Conveyances (Table 46)
- North Carolina Housing Finance Agency: Home Buyers
- Tax Foundation: Property Taxes by State and County, 2026 (Census Bureau American Community Survey data)
- CFPB: Figure out how much you want to spend (typical closing costs of 2% to 5%)
Tax rules and rates change, and counties and cities can add their own, so confirm the amounts for your purchase with your lender, title company or attorney. Last reviewed September 2026. This is general information, not legal, tax or financial advice. Found something out of date? Tell us.