Massachusetts Real Estate License Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Massachusetts Real Estate Exam. Master essential concepts with flashcards and multiple-choice questions. Each question offers hints and explanations to boost your confidence. Get ready to pass!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the tax rate on selling a home in Massachusetts?

$2.50/$1,000
$4.56/$1,000
$5.00/$1,000
$3.00/$1,000

The correct answer is: $4.56/$1,000

In Massachusetts, the tax rate on the sale of a home is established at $4.56 for every $1,000 of the sale price. This tax is known as the "Deed Excise Tax" and is imposed on the transfer of real estate. When a property is sold, the seller is responsible for this tax, which is calculated based on the selling price of the property. To convert the sale price into a tax amount, one would divide the total sale price by 1,000 and then multiply that result by $4.56. Understanding this tax rate is vital for both sellers and buyers, as it can affect the overall cost of the transaction. Sellers should factor this tax into their closing costs, while buyers should be aware of it to ensure that all transaction expenses are accounted for in their budget.