Do You Have to Pay Taxes on a Quitclaim Deed in Florida?

Yes, transferring property using a quitclaim deed in Florida typically involves paying certain taxes and fees. The primary tax associated with this transaction is the documentary stamp tax, which applies to the transfer of real estate. Here's what you need to know about taxes on a quitclaim deed in Florida:

Documentary Stamp Tax:

• Rate: The documentary stamp tax rate is $0.70 for every $100 of the property’s sale price or the fair market value, whichever is higher. In Miami-Dade County, the rate is slightly different: $0.60 for every $100, with an additional $0.45 for documents that transfer an interest in real property. (always confirm with the county and state to ensure the amounts are correct, as they are subject to change.)

• Calculation: If the property is transferred without a sale (e.g., between family members with no money changing hands), the tax is calculated based on the property's fair market value.

• Payment: The tax is usually paid by the person recording the deed, often the grantee (recipient of the property). However, the parties involved can agree on who will pay this tax.

Exemptions:

• Certain Family Transfers: Transfers between spouses or for certain estate planning purposes may be exempt from the documentary stamp tax. Verifying the specific conditions and applying for the exemption correctly is essential.

• Additional Exemptions: Other exemptions, such as transfers to or from a revocable trust, may apply, but these situations are specific and require careful legal review.

Additional Costs:

• Recording Fees: Besides the documentary stamp tax, there are recording fees for filing the quitclaim deed with the county recorder’s office. These fees vary by county.

• Professional Fees: Legal fees for drafting and reviewing the quitclaim deed and any necessary consultations should also be considered.

Transferring property using a quitclaim deed in Florida involves paying the documentary stamp tax and possibly other fees, understanding the specific requirements, and seeking legal advice, which can help ensure compliance and minimize costs.