In California, filing a quitclaim deed involves paying county filing fees. Before transferring the property, all outstanding taxes must be settled. If there’s no exchange of money, a gift tax kicks in, although there are exceptions for spouses and trusts. Additionally, a documentary tax applies, except in cases where the transfer is due to the grantor’s death.
Filing Fees
In California, filing a quitclaim deed involves two types of fees:
- County Base Filing Fees: These fees start at $10 for the first page and $3 for each additional page. The total cost varies by county. (Cal. Gov. Code § 27361)
- Building Homes and Jobs Act Recording Fee: This fee is $75 per transaction per real property parcel, capped at $225. (Cal. Gov. Code § 27388.1) So, if multiple parcels are transferred in one quitclaim deed, the maximum fee is $225. But if separate deeds are used to transfer multiple parcels, the fee is $75 multiplied by the number of parcels.
Taxes
Using a quitclaim deed in California may trigger several taxes:
1. Documentary Transfer Tax (DTT)
Per Cal. Rev. & Tax. Code §§ 11911-11913, counties or cities charge a documentary transfer tax for any document that indicates a real estate transfer.
Who Pays the Transfer Tax?
- Typically, the seller covers the transfer tax in California.
- Negotiations may lead to the buyer paying or a shared payment arrangement between the parties.
Exemptions to Transfer Tax (Cal. Rev. & Tax. Code §§ 11921-11930):
- Gifts
- Bequests or inheritances
- Transfers between spouses without monetary exchange
- Transfers during divorce or legal separation
- Transfers in business reorganizations
- Deeds as collateral for debt
Tax Rates
- State transfer tax rate: 0.11% (applies to all California counties).
- Cities may impose additional transfer taxes.
- Some cities, e.g., San Francisco, Oakland, and Santa Monica, use property value tiers for tax rates (e.g., San Francisco charges 0.75% for properties valued at $1 million to $5 million and 2.25% for those valued at $5 million to $10 million).
| City | Additional City Transfer Tax | Total Transfer Tax |
|---|---|---|
| Alameda | 1.2% | 1.31% |
| Albany | 1.5% | 1.61% |
| Berkeley | 1.5% (properties valued $1.6 million or less) 2.5% (properties valued more than $1.6 million) | 1.61% (properties valued $1.6 million or less) 2.61% (properties valued more than $1.6 million) |
| Emeryville | 1.2% | 1.31% |
| Hayward | .85% | .96% |
| Oakland | 1% (properties valued less than $300,000) 1.5% (properties valued $300,000 up to $2 million) 1.75% (properties valued $2 million up to $5 million) 2.5% (properties valued more than $5 million) | 1.11% (properties valued less than $300,000) 1.61% (properties valued $300,000 up to $2 million) 1.86% (properties valued $2 million up to $5 million) 2.61% (properties valued more than $5 million) |
| Piedmont | 1.3% | 1.41% |
| San Leandro | 1.1% | 1.21% |
| El Cerrito | 1.2% | 1.31% |
| Richmond | 0.7% (properties valued less than $1 million) 1.25% (properties valued $1 million up to $3 million) 2.5% (properties valued $3 million up to $10 million) 3.0% (properties valued more than $10 million) | .81% (properties valued less than $1 million) 1.36% (properties valued $1 million up to $3 million) 2.61% (properties valued $3 million up to $10 million) 3.11% (properties valued more than $10 million) |
| Culver City | 0.45% properties valued (less than $1.5 million) 1.5% (properties valued $1.5 million to $3 million) 3.0% (properties valued $3 million to $10 million) 4.0% (properties valued more than $10 million) | 0.56% (properties valued less than $1.5 million) 1.61% (properties valued $1.5 million to $3 million) 3.11% (properties valued $3 million to $10 million) 4.11% (properties valued more than $10 million) |
| Los Angeles | .45% | .56% |
| Pomona | .22% | .33% |
| Redondo Beach | .22% | .33% |
| Santa Monica | 0.3% (properties valued less than $5 million) 0.6% (properties valued $5 million or more) | 0.41% (properties valued less than $5 million) 0.71% (properties valued $5 million or more) |
| San Raphael | .2% | .31% |
| Riverside | .11% | .22% |
| Sacramento | .275% | .385% |
| San Francisco | 0.5% (properties valued $100 to $250,000) 0.68% ($250,000 to $1 million) 0.75% (properties valued $1 million to $5 million) 2.25% (properties valued $5 million to $10 million) 5.50% (properties valued $10 million to $25 million) 6.00% (properties valued more than $25 million) | 0.61% (properties valued $100 to $250,000) 0.79% (properties valued $250,000 to $1 million) 0.86% (properties valued $1 million to $5 million) 2.36% (properties valued $5 million to $10 million) 5.61% (properties valued $10 million to $25 million) 6.11% (properties valued more than $25 million) |
| San Mateo | .5% | .61% |
| Mountain View | .33% | .44% |
| Palo Alto | .33% | .44% |
| San Jose | 0% (properties valued less than $2 million) 0.75% (properties valued $2 million to $5 million) 1.0% (properties valued $5 million to $10 million) 1.5% (properties valued more than $10 million) | 0.11% (properties valued less than $2 million) 0.86% (properties valued $2 million to $5 million) 1.11% (properties valued $5 million to $10 million) 1.61% (properties valued more than $10 million) |
| Vallejo | .33% | .44% |
| Petaluma | .2% | .31% |
| Santa Rosa | .2% | .31% |
2. U.S. Gift Tax (Form 709)
California doesn’t impose state gift taxes, but a federal gift tax (Form 709) may apply.
- A gift tax applies when property changes hands without money exchange.
- The giver must file Form 709.
- Exceptions exist, like transferring deeds to trusts or between spouses.
3. Capital Gains Tax
Both the state and federal governments may impose capital gains taxes on property transfers through quitclaim deeds.
