When Quit Claiming Property, You May Qualify for a Washington State Excise Tax Exemption

Generally, a quit claim is the grant of an interest in land to another where the seller does not make any warranties about the land, but the grantor conveys whatever interest he or she may have. In most instances, a seller will quit claim an interest in land to the buyer. When this occurs, the receiving party takes the land and is subject to excise tax that varies depending on the county that you reside in in Washington State. For example, King County’s excise tax is 1.78% depending on what part of King County you are in. You can view the excise tax rates throughout Washington State You can also visit the Washington State Department of Revenue’s website on Washington State excise tax.

Not all quit claims or grants of land are subject to Washington State excise tax. There are several instances where you can claim a Washington State excise tax exemption. The first step in the process is filling out the Washington State excise tax exemption form.

Some of the most common instances of Washington State excise tax exemption are quit claiming property you currently own or own a controlling interest into an entity owned or managed by yourself or quit claiming property you own as an individual to your spouse.

For a complete list, visit RCW 82.45 and WAC 458-61A.

An experienced Washington State real estate attorney can help guide you through the quit claim process, prepare the quit claim, grant, or documentation as well as help you better understand the process and procedure. Avoiding the payment of an excise tax by using a proper contract and exemption is wise and prudent. For more information, check with a Washington State real estate attorney.

Rhodes Legal Group, PLLC is a Seattle area based law firm who handles real estate and quit claim matters for clients throughout the greater Seattle area and Washington State. 

Rhodes Legal Group’s Real Estate Practice is chaired by Patrick W. Kwan, a Seattle area based real estate attorney. For more information on Patrick W. Kwan, view his bio here. Mr. Kwan handles business and real estate law matters in the greater Seattle area.

Patrick Kwan

With near over 25 years of business world experience as an entrepreneur, distributor and manufacturer, Patrick Kwan is the kind of experienced business leader and lawyer who understands business from conception to sustained, profitable, on-going operation. Mr. Kwan brings his proven track record of success in innovation, leadership, business growth, management, sales, and operations to the counsel and practice of law. As an attorney, he is highly motivated, resourceful, hard-working, goal-orientated, a great team player, well-organized, and able to transcend adversity. Read more >>
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