This page explains Massachusetts deed excise tax in plain English.
Many people prepare a Massachusetts quitclaim deed and then discover there may be a tax collected when the deed is recorded. Massachusetts calls this a deed excise tax, and the Registry of Deeds generally collects it at recording.
Important Massachusetts Deed Excise Note:
Massachusetts deed excise tax generally applies when the taxable consideration for a deed is more than $100.
The standard Massachusetts rate is generally $2.28 for each $500 of taxable consideration or fractional part of $500.
Example: if the taxable consideration is $100,000, the standard Massachusetts deed excise would generally be about $456.
Barnstable County uses a higher combined rate, generally $3.24 for each $500. Example: a $100,000 taxable transfer in Barnstable County would generally be about $648.
Some transfers may qualify for no tax or exemption treatment. See our Massachusetts Deed Excise Tax Exemptions page.
What Is Massachusetts Deed Excise Tax?
Massachusetts deed excise tax is a tax connected with recording many deeds and other instruments that transfer real estate.
In plain English, if a deed transfers real estate for taxable consideration, the Registry of Deeds may collect deed excise tax before the document is recorded.
A quitclaim deed is not automatically exempt just because it is called a quitclaim deed. The tax question depends on what the transfer actually does.
How Is the Tax Calculated?
Massachusetts deed excise is generally calculated from the taxable consideration stated for the transfer.
The standard rate is $2.28 for each $500 or fractional part of $500.
If the consideration does not fall exactly on a $500 increment, the amount is rounded up to the next $500 increment before calculating the tax.
Examples using the standard Massachusetts rate:
- $50,000 taxable consideration = about $228 deed excise tax
- $100,000 taxable consideration = about $456 deed excise tax
- $250,000 taxable consideration = about $1,140 deed excise tax
- $500,000 taxable consideration = about $2,280 deed excise tax
Barnstable County Has a Higher Rate
Barnstable County is different.
The Barnstable Registry of Deeds lists a combined excise tax rate of $6.48 per $1,000 of stated value. That equals $3.24 for each $500.
Examples using the Barnstable County rate:
- $50,000 taxable consideration = about $324 deed excise tax
- $100,000 taxable consideration = about $648 deed excise tax
- $250,000 taxable consideration = about $1,620 deed excise tax
- $500,000 taxable consideration = about $3,240 deed excise tax
If the property is in Barnstable County, use the Barnstable rate instead of the standard Massachusetts rate.
How Is the Taxable Amount Decided?
Massachusetts deed excise is generally based on the consideration for the transfer.
In plain English, consideration usually means the value paid or given in exchange for the property interest.
Massachusetts law excludes the value of any lien or encumbrance remaining on the property at the time of sale when determining the consideration subject to deed excise.
For a normal sale, this is usually straightforward. For a quitclaim deed used in a gift, family transfer, trust transfer, divorce transfer, or no-money transfer, the excise result may depend on whether taxable consideration exists and whether an exemption applies.
Who Collects the Tax?
The Registry of Deeds collects deed excise tax when the deed is recorded.
The tax is generally shown by excise stamps or electronic excise notation associated with the recorded deed.
If tax is due and not paid, the deed may not be accepted for recording.
Official Massachusetts Sources
These official sources explain Massachusetts deed excise tax and recording standards.
Does a Quitclaim Deed Avoid Deed Excise?
No. A quitclaim deed does not automatically avoid Massachusetts deed excise tax.
The important question is whether the transfer involves taxable consideration.
For example:
- A quitclaim deed used for a sale may be taxable.
- A quitclaim deed used for a gift may not involve taxable consideration, but recording details still matter.
- A quitclaim deed between spouses or former spouses may need special review depending on the facts.
- A quitclaim deed involving a trust, nominee trust, or beneficial interest may raise additional excise questions.
What About Exemptions?
Some transfers may qualify for no excise or exemption treatment.
Common situations that raise exemption questions include gifts, divorce transfers, government transfers, certain corrective deeds, partitions, and some transfers involving trusts or entities.
The exemption should match the actual transfer and may need to be explained in the deed or recording package.
Common Massachusetts Deed Excise Mistakes
- Assuming every quitclaim deed is tax-free
- Forgetting that Barnstable County has a higher rate
- Using the wrong Registry of Deeds or registry district
- Failing to review whether taxable consideration exists
- Assuming a gift transfer never needs explanation
- Failing to document why no excise is due
- Confusing deed excise tax with the ordinary recording fee
- Failing to round taxable consideration correctly when needed
How This Fits Into the Massachusetts Quitclaim Deed Process
When preparing a Massachusetts quitclaim deed, review deed excise tax before recording.
If tax is due, the Registry of Deeds collects it when the deed is recorded. If no tax is due or an exemption applies, the deed package should make that clear enough for recording review.
Return to the main Massachusetts Quitclaim Deed Instructions page for the complete step-by-step guide.
Massachusetts Deed Excise Tax FAQ
What is Massachusetts deed excise tax?
It is a tax collected when many deeds and other instruments transferring Massachusetts real estate are recorded.
Who collects the deed excise tax?
The Registry of Deeds generally collects deed excise tax at the time of recording.
Does Barnstable County use the same rate?
No. Barnstable County uses a higher combined rate than the standard Massachusetts rate.
Does every quitclaim deed require excise tax?
No. Some transfers may involve no taxable consideration or may qualify for no tax or exemption treatment.
Is this legal advice?
No. This page provides general educational information and is not legal advice.