When you convey property using a New Hampshire quitclaim deed, you are subject to certain fees and taxes, including recording fees, state taxes, and federal taxes.
Recording Fees
Recording fees for filing a quitclaim deed in New Hampshire are established under N.H. Rev. Stat. § 478:17-g as follows:
- $10 recording fee for the first recorded page
- $4 fee for each additional recorded page
- $25 fee for recording a deed
Taxes
Taxes you may pay on a quitclaim deed in New Hampshire include real estate transfer tax, US gift tax, and capital gains tax.
1. Real Estate Transfer Tax
Per N.H. Rev. Stat. § 78-B:1, each sale, grant, or transfer of real estate is subject to a real estate transfer tax. Tax should be paid to the registry of deeds office in the county where the property is located.
Who Pays the Transfer Tax?
The real estate transfer tax is imposed on both the buyer and the seller, who are required to pay their taxes directly to the registry of deeds.
Exemptions to Transfer Tax
Per N.H. Rev. Stat. § 78-B:2, certain real estate transactions are exempt from New Hampshire real estate transfer tax. Exemptions that could apply to quitclaim deeds include:
- Transfer of title to a state or local governmental agency or district
- Transfer of title to the US or its agencies
- Deeds to correct a previous deed or real estate document
- Transfer of title from a tax-exempt organization to another tax-exempt organization for the purpose of reorganization or internal transfer
- Noncontractual transfers
- Transfers of cemetery plots
- Transfer of property through joint tenancy
- Transfer of property to a beneficiary in a partnership due to the death of a partner
- Transfer of title between spouses due to a divorce decree
If you are not sure whether exemptions apply to your New Hampshire quitclaim deed, consider consulting with a tax professional or real estate attorney before you sign.
Tax Rates
New Hampshire charges a tax rate of $0.75 per $100 or a fraction of the consideration received. If consideration for the property transfer is $4,000 or less, there is a minimum tax of $20.
2. US Gift Tax (Form 709)
New Hampshire does not charge a gift tax, but the federal government charges for gifts over a certain amount, as established by the IRS annually [1]. If the grantor gifts real estate to the grantee through a quitclaim deed, and the value of the property exceeds the federal gift tax exemption, the grantor must fill out form 709 [2] when they complete their annual income tax return. Gift tax rates are based on the amount of the gift — in this case, the value of the property conveyed using the quitclaim deed.
3. Capital Gains Tax
While you may owe federal capital gains tax on a real estate transfer through a New Hampshire quitclaim deed, you do not need to worry about state capital gains. US capital gains tax is calculated based on the amount of time the grantor owned the property before they transferred it and how much consideration they received. The IRS also considers your taxable income when determining the capital gains tax rate, exemptions, and deductions. [3]
