Real Estate Glossary > E > Excise Tax Definition

A tax on the transfer of ownership from the seller to the buyer paid at closing. The tax amount is based on the sale price of the home and will vary by state. It's paid by the seller to the escrow agent A neutral third party or attorney that handles the exchange of money and documents once mutual acceptance is reached on an offer. or the attorney responsible for closing the deal, who then pays it to the government. Not exclusive to real estate, excise taxes are paid on most goods produced within a country.