When you file a quitclaim deed in Oklahoma, you may be asked to pay recording fees and transfer taxes at the time of recording. Depending on the details of your transaction, you may also owe state and federal taxes for gifts and capital gains when you file your annual income tax return.
Recording Fees
Okla. Stat. tit. 28 § 32 establishes fees for recording official documents, including quitclaim deeds. Typically, recording fees are as follows:
- $18.00 for the first page
- $2.00 for each additional page
- $25.00 for the first page of documents that do not conform to Okla. Stat. tit. 19 § 298 requirements
- $10.00 for each additional page of a non-conforming document
Taxes
Taxes for conveying real estate in Oklahoma using a quitclaim deed may include state documentary tax, state and federal capital gains tax, and federal gift tax.
1. Documentary Tax
Oklahoma charges a documentary stamp tax for deeds transferring property with consideration, in accordance with Okla. Stat. tit. 68 § 3201.
Who Pays the Documentary Tax?
Documentary tax is typically paid by the grantor when transferring property in Oklahoma via quitclaim deed.
Exemptions to Documentary Tax
The following are excluded from documentary tax, per Okla. Stat. tit. 68 § 3202:
- Deeds that secure or release a debt or obligation
- Deeds that modify, correct, or supplement an already recorded deed without additional consideration
- Deeds that convey property between spouses, parents and children, and other close relatives without consideration, unless the property is transferred to another unrelated person within 1 year
- Deeds that convey property between the owner to a business owned by a close relative of the grantor without consideration, unless the property is transferred to another unrelated person within 1 year
- Tax deeds
- Deeds executed by Native Americans when approved by the district courts or Secretary of the Interior
- Deeds of partition when parties take equal shares
- Deeds conveying property in a business merger
- Deeds to cancel or surrender subsidiary stock to a parent corporation
- Deeds involving the US or State of Oklahoma and any of their instrumentalities, agencies, departments, or subdivisions, including the Oklahoma Space Industry Development Authority
- Deeds pursuant to foreclosure in which the grantee holds the mortgage or acts to release the mortgage holder from liability
- Deeds to remove discriminatory restrictive covenants
- Deeds that convey property for consideration of less than $100
Tax Rates
Oklahoma documentary tax is assessed for all properties conveyed with consideration over $100. The rate is $0.75 for every $500 of the consideration or any fraction thereof.
2. US Gift Tax (Form 709)
If you convey property as a gift using an Oklahoma quitclaim deed, you may be required to pay a gift tax to the federal government. Oklahoma does not have a gift tax. US gift tax is assessed for gifts over the federal exemption amount. The IRS updates this exemption value annually [1].
If you gifted property valued over the gift tax exemption, you can file your gift tax with your annual tax return by using form 709 [2].
3. Capital Gains Tax
If you conveyed property through an Oklahoma quitclaim deed with consideration, you may owe Oklahoma and federal capital gains tax. Oklahoma charges capital gains tax per Okla. Stat. tit. 68 § 2358. The tax is assessed as income tax on the amount of profit the grantor made when selling the property.
Regulations and exemptions for capital gains tax are different for federal and state taxes. So, you may owe Oklahoma capital gains tax but not federal or vice-versa. The IRS bases capital gains rates on the taxpayer’s annual household income, the value of the conveyed property, and the length of time the grantor owned the property [3].
