Texas quitclaim deed costs and fees are typically lower than other states because Texas doesn’t impose state taxes on transfers or gifts. A small filing fee applies, as do federal taxes on gifts. Otherwise, the experience is relatively affordable when a grantor takes on this task themselves.
Filing Fees
Quitclaim deed filing fees are $25 for the first page and $4 for each supplemental page. Tex. Loc. Gov’t Code § 118.011 covers filing fees for recording every kind of documentation in full.
Taxes
In general, taxes on Texas property transfers, including quitclaim deeds, are less expensive than in other states. Texas doesn’t impose a state transfer, gift, or capital gains tax, lowering taxes for quitclaim deeds overall. Explore some taxes that may come into effect when you use a quitclaim deed:
1. Documentary Transfer Tax (DTT)
Texas doesn’t have any transfer taxes. Its statewide embargo on transfer taxes makes the transfer process more affordable for grantors of a quitclaim deed.
2. US Gift Tax (Form 709)
Texas also doesn’t have a state-specific gift tax. Federally, the US gift tax applies to all quitclaim deeds. The IRS considers a taxable gift to be any transfer to an individual where the giver doesn’t receive its full monetary value in return.
The grantor generally pays the gift tax, but the grantee can agree to pay the tax in special circumstances. For quitclaim deeds specifically, grantors can find the amount they owe by filling out IRS Form 709. Exceptions exist for property transfers between spouses or trusts.
3. Capital Gains Tax
While Texas again has no capital gains tax, the federal government does. A capital gains tax, which the IRS discusses in Topic No. 409, applies to the grantee only if they sell the property later for more than the adjusted basis amount. Grantees can refer to IRS Publication 551 for more information about how to find the adjusted basis for a property they’ve received as a gift or inheritance.
