Costs of Selling Land in Virginia
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Virginia at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| Grantor tax | $0.50 per $500 ($1 per $1,000) | Seller by statute unless agreed otherwise |
| Regional transportation improvement fee | $0.10 per $100, Northern Virginia only | Seller by statute unless agreed otherwise |
| State and local recordation tax | $0.25 per $100 state plus up to one third of that locally | Buyer by custom |
| Recording fees | Set by the county recorder; charged per document or page | Buyer usually records the deed; seller pays to record lien releases |
| Title search and owner's title insurance | Priced by the title company or attorney; varies with sale price | Set by the contract and local custom |
| Prorated property taxes | Your share of the current year's tax, up to the closing date | Seller for the days owned; unpaid back taxes are paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% of a long-term gain (land held over 1 year); short-term gains taxed as ordinary income; 3.8% NIIT may apply at higher incomes | Seller, on the gain only |
| Virginia income tax on the gain | 2% to 5.75%; top rate on income over $17,000 | Seller |
Example: Seller Costs on a $25,000 Land Sale
- Grantor tax (50 units of $500 x $0.50)
- $25
- Northern Virginia regional fee, only in NVTA localities (250 x $0.10)
- $25
- Total seller transfer cost
- $50
Grantor tax: $25,000 / $500 = 50 x $0.50 = $25. Outside Northern Virginia the total is $25. The buyer's recordation tax ($62.50 state at $0.25 per $100, plus any local add-on) is not included, nor are title and prorated taxes.
Selling Costs in Virginia: What to Know
Virginia splits its deed taxes. The buyer pays the recordation tax, and the seller pays the grantor tax, plus a regional fee in Northern Virginia. This page lists each cost of selling land in Virginia and a $25,000 example.
Most of these costs come out of your proceeds at closing, so you see them on the settlement statement, not as bills. The one cost that comes later is income tax on any gain, which you report on your return. This page is general information, not legal or tax advice. Rates change, so confirm them with the office named here or a tax professional before you rely on them.
Virginia grantor tax, regional fee and recordation tax
The seller pays the grantor tax: 50 cents for each $500 of value or part of $500, when the value is over $100. The law puts it on the grantor, but the parties may agree that the buyer pays some or all of it (Va. Code 58.1-802).
In counties and cities that belong to the Northern Virginia Transportation Authority, the seller also pays a regional fee of 10 cents per $100 (Va. Code 58.1-802.3).
The state recordation tax on the deed is 25 cents per $100 (Va. Code 58.1-801), and a city or county may add one third of that (Va. Code 58.1-3800). By custom the buyer pays the recordation tax.
Who pays what in Virginia
In Virginia the seller usually pays the grantor tax and any regional fee, and the buyer pays the recordation tax and records the deed. The seller usually pays to prepare the deed. Title insurance and the settlement fee are split as the contract says.
- Seller: the state transfer tax where the law puts it on the seller, any agent commission, payoff of liens and back taxes, and the seller's share of the year's property tax.
- Buyer: recording the new deed, any lender fees, and the costs the contract assigns to the buyer.
- Either side: title insurance, settlement or escrow fees, and survey costs, as the contract says.
Attorney or title company: who closes a land sale in Virginia
Virginia closings are run by a settlement agent, which may be a lawyer or a title company. The settlement agent collects the taxes, records the deed, pays off liens and back taxes, and pays you.
Because a deed is a legal document, many sellers have a lawyer prepare it. A lawyer is also wise when heirs own the land or an estate is open.
Capital gains tax when you sell land in Virginia
Federal tax applies to the gain, not to the sale price. The gain is roughly the sale price minus what you paid for the land, minus selling costs and the cost of lasting improvements. If you held the land for more than one year, the gain is long term. If you held it one year or less, it is short term and is taxed like wages (IRS Topic 409).
Long-term gains get federal rates of 0, 15 or 20 percent, depending on your taxable income. For 2025, a single filer paid 0 percent on long-term gains if taxable income was $48,350 or less. Higher earners may also owe the 3.8 percent net investment income tax when modified adjusted gross income passes $200,000 for single filers or $250,000 for joint filers (IRS Topic 559).
Virginia taxes gains as income at rates of 2 percent, 3 percent, 5 percent and 5.75 percent. The 5.75 percent rate applies to taxable income over $17,000 (Va. Code 58.1-320).
Recording, title and property tax at closing
Recording fees are set by law and charged by the county office that records deeds. The buyer usually pays to record the new deed. If a mortgage or lien is paid off at closing, the release is recorded too, and the seller usually pays for that.
A title search shows who owns the land and what liens or back taxes sit on it. Owner's title insurance protects the buyer against title problems found later. The price comes from the title company or attorney, and the contract says who pays.
Property tax is split by date. You pay for the part of the year you owned the land, and the buyer pays for the rest. Any back taxes are paid from your proceeds before you get the balance.
How selling to a cash buyer changes the costs
A cash sale has no lender, so there are no loan fees, no appraisal and no financing delays. When you sell to EasyLotBuyer, we pay the closing costs, and you pay no fees or commissions. We can close in as few as 7 days, and we send a cash offer within 24 hours.
We also buy land with back taxes, liens, title problems or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale. Tax on your gain is still yours to report, so keep your closing statement for your return. Get a cash offer for your Virginia land.
Sources
- 1. law.lis.virginia.gov
- 2. law.lis.virginia.gov
- 3. law.lis.virginia.gov
- 4. law.lis.virginia.gov
- 5. law.lis.virginia.gov
- 6. irs.gov
- 7. irs.gov
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Virginia
What is the Virginia grantor tax?
A tax the seller pays when the deed is recorded: 50 cents for each $500 of value. On a $25,000 lot it is $25.
Who pays the recordation tax in Virginia?
By custom the buyer pays the recordation tax of 25 cents per $100 plus any local add-on. The seller pays the grantor tax.
What closing costs does a seller pay in Virginia?
Usually the grantor tax of 50 cents per $500, plus 10 cents per $100 in Northern Virginia, plus payoff of any liens or back taxes and the seller's share of the year's property tax. Title and closing fees are split as the contract says.
Do I owe capital gains tax when I sell land in Virginia?
Federal tax applies to any gain, and Virginia taxes the gain as income, mostly at 5.75 percent for incomes over $17,000.
Who pays closing costs when I sell land for cash?
It depends on the contract. When you sell to EasyLotBuyer, we pay the closing costs and you pay no fees or commissions. Back taxes, if any, are paid from the sale at closing.
Are back taxes paid at closing?
Yes. The closing agent pays delinquent property taxes and recorded liens from the sale proceeds, and you receive the balance. You can sell land that has back taxes.