Filing a Maine quitclaim deed may incur certain fees and taxes on a county, state, and federal level, as listed below.
Recording Fees
When you record your quitclaim deed with the register of deeds in the county where the property is located, you will be asked to pay a recording fee. The fee structure is set forth under Me. Stat. tit. 33 § 751. The typical recording fees are:
- $19.00 for the first recorded page
- $2.00 for each additional recorded page or portion of a page
- $1.00 per name if more than four names are indexed, counting all grantors and grantees
- $3.00 county surcharge for certain registered documents
Taxes
Maine assesses a transfer tax for all real estate transfers based on the property value.
1. Transfer Tax
The transfer tax must be paid within 30 days of the property transfer. You can pay the tax online using the Real Estate Transfer Tax Declarations (RETTD) service or download the form and submit it directly to the state tax assessor.
Who Pays the Transfer Tax?
Transfer tax is divided equally between the grantor and grantee and must be paid within 30 days of the transfer.
Exemptions to Transfer Tax
Exemptions to Maine declaration of value and transfer tax are listed under Me. Stat. tit. 36 § 4641-D. They include:
- Property transfers by or to the US government, the state of Maine, or any agencies or subdivisions thereof
- Deeds discharging a mortgage
- Deeds partially releasing a mortgage
- Deeds modifying, correcting, or supplementing a previously recorded deed without consideration
- Deeds dated before October 1, 1975
- Deeds distributing property in probate, per Me. Stat. tit. 18-C
- Transfer-on-death deeds
Deeds exempt from transfer tax and declaration of value requirements must list the specific exemption and reference the appropriate law on the deed itself.
Tax Rates
Per Me. Stat. tit. 36 § 711-A, real estate transfers are subject to a transfer tax equal to $2.20 for each $500 of property value. The property value is based on the declaration of value in the RETTD form. Even conveyances for nominal consideration are subject to this tax.
2. US Gift Tax (Form 709)
Maine does not have a gift tax. Gifts of real estate transferred via quitclaim deed may be subject to federal gift tax if they exceed the annual exclusion established by the Internal Revenue Service (IRS). If you gifted property over the annual exclusion amount, you can pay gift tax with your annual tax return using Form 709.
3. Capital Gains Tax
Maine taxes capital gains as regular income. If the grantor of a real estate property via a quitclaim deed profits from the exchange, they may owe long- or short-term capital gains depending on the amount of profit, ownership duration, and annual income.
The IRS may also charge a capital gains tax with rates based on the same terms. If you are unsure whether you owe capital gains tax, consult a local tax professional or real estate attorney. They can help you determine whether you owe and guide you through the process.
