A semiconductor transistor structure with reduced contact resistance includes a substrate, a channel layer on the substrate, a barrier layer on the channel layer, a two-dimensional electron gas (2DEG) layer at an interface between the barrier layer and the channel layer, and a recess in a contact region. The recess penetrates through the barrier layer and extends into the channel layer. An Ohmic contact metal is disposed in the recess. The Ohmic contact metal is in direct contact with a vertical side surface of the barrier layer in the recess and in direct contact with an inclined side surface of the 2DEG layer and the channel layer in the recess.