What will you actually take home when you sell your Druid Hills home? Between capital gains rules, Georgia transfer tax, and closing fees, it can be hard to pin down your net. You want clear answers so you can price with confidence, plan improvements, and move on schedule. This guide breaks down what sellers in Druid Hills typically owe, how capital gains works, and a simple example you can adapt to your home. Let’s dive in.
Your selling costs in Druid Hills
Commissions and closing charges
Your largest cost is usually the brokerage commission. Recent analysis shows total commissions still cluster around the mid 5 percent range, and they remain negotiable as practices evolve. See the Federal Reserve’s review of commission trends for context on today’s market practices: commissions and broker compensation.
Beyond commission, plan for other seller closing charges. National consumer guidance generally pegs noncommission closing costs around 1 to 3 percent of the sale price, depending on your title fees, prorations, and concessions. For a helpful overview, see Kiplinger’s breakdown of common selling costs.
Georgia transfer tax and PT‑61
Georgia charges a real estate transfer tax that must be paid before recording the deed. The formula is $1 for the first $1,000 of price, plus $0.10 for each additional $100. The seller is liable under state law, but parties can negotiate who pays. Learn more on the Georgia Department of Revenue’s transfer tax page.
Recording, HOA, and small fees
DeKalb County recording fees are modest relative to commissions and taxes, but they are required to record the deed and related documents. If your property is in an HOA or condo, expect a transfer or estoppel fee. You will also settle prorated property taxes and utilities at closing.
Capital gains and your home sale
Start with your gain
Your gain equals your amount realized from the sale minus your adjusted basis. Basis starts with your purchase price and adjusts for capital improvements and certain decreases such as depreciation. The IRS explains these calculations in Publication 544.
The home sale exclusion
Most owner‑occupants qualify for the home sale exclusion. If you owned and used the home as your principal residence for at least 2 of the 5 years before the sale, you can generally exclude up to $250,000 of gain if single or $500,000 if married filing jointly. Prior exclusions, partial rental or business use, and other factors can affect eligibility. See IRS Topic No. 701 for the rules and worksheets.
Mixed use and depreciation
If you rented part of the home or claimed depreciation for business use, the depreciation portion of your gain cannot be excluded. That part is taxed as unrecaptured Section 1250 gain at up to 25 percent. Details are in IRS Publication 544.
Federal and Georgia rates
Long‑term capital gains are taxed federally at 0 percent, 15 percent, or 20 percent based on your income, and some higher‑income sellers may also owe the 3.8 percent Net Investment Income Tax. Georgia taxes taxable gains at a flat 5.19 percent for the 2025 tax year and generally follows the federal home sale exclusion. See the DOR’s important tax updates for the current rate.
Reporting and 1099‑S
If you receive a Form 1099‑S for the sale, you must report it even if all your gain is excluded. The IRS outlines reporting steps and worksheets in its guidance on tax considerations when selling a home.
Example: $800,000 Druid Hills sale
Use these round numbers to see how the pieces fit. Your actual figures will vary based on your agreement, payoff, and property specifics.
- Sale price: $800,000
- Commission: assume 5.5 percent ≈ $44,000
- Other seller closing charges: estimate 1.0 percent ≈ $8,000
- Georgia transfer tax (PT‑61): about $800
- Net before mortgage payoff and any income tax on gain: $800,000 − $44,000 − $8,000 − $800 ≈ $747,200
If the home is your primary residence and your gain falls within the $250,000 or $500,000 exclusion, you likely owe no federal or Georgia income tax on the excluded portion. If part of your gain is taxable or you have depreciation to recapture, factor that in with your tax advisor.
Local Druid Hills notes
Druid Hills spans unincorporated DeKalb County and portions of the City of Atlanta. Municipal procedures, utilities, and certain fees can differ by side of the line, so confirm your jurisdiction early. The neighborhood includes historic districts where exterior changes may require review, which can affect pre‑sale projects and disclosures. Get oriented with the Druid Hills overview, then verify details with your planning office and closing team.
Seller checklist
- Confirm your jurisdiction: City of Atlanta or unincorporated DeKalb. This can affect utilities, permitting, and processes.
- Gather records that build your basis: purchase statement, receipts for capital improvements, and any depreciation schedules. IRS Publication 523 includes worksheets.
- Ask for a net sheet that fits your home: commission, title fees, prorations, HOA transfer fees, RETT estimate, and any concessions. For market context, see the Fed’s look at commission trends.
- Understand the Georgia transfer tax and PT‑61 filing requirement with the DOR’s RETT guidance and the GSCCCA’s PT‑61 info page.
- If you ever rented the home or claimed a home office, talk with a CPA about depreciation recapture and timing strategies.
Make a confident move
When you know your numbers, you can price smarter, decide which improvements to make, and avoid last‑minute surprises at closing. If you want a custom net sheet and a clear plan that pairs strategic improvements with premium marketing, connect with Molly Carter Gaines. You will get local expertise, a renovation‑ready listing approach, and calm, confident guidance from list to close.
FAQs
What taxes apply when selling a home in Druid Hills?
- Georgia imposes a real estate transfer tax due at recording, and Georgia taxes any taxable gain at a flat 5.19 percent. If you qualify for the federal home sale exclusion, Georgia generally follows it. See the DOR’s tax updates and IRS Topic 701.
How does the $250k/$500k home sale exclusion work?
- If you owned and used the home as your main residence for at least 2 of the last 5 years, you can typically exclude up to $250,000 of gain if single or $500,000 if married filing jointly. See IRS Topic 701.
Do I owe tax if I had a home office or rented a room?
- Any depreciation you claimed for business or rental use is not excludable and is taxed up to 25 percent as unrecaptured Section 1250 gain. See IRS Publication 544.
Who files PT‑61 and pays Georgia’s transfer tax?
- The PT‑61 transfer tax declaration must be filed and the tax paid before the deed is recorded. State law makes the seller liable, though parties often negotiate payment. See the DOR’s RETT page and the GSCCCA’s PT‑61 information.
What are typical seller closing costs besides commission?
- Many sellers see about 1 to 3 percent in noncommission closing costs that cover title, recording, prorations, and fees, plus the transfer tax. For a clear overview, review Kiplinger’s guide to selling costs.
