This page explains Maine Real Estate Transfer Tax exemptions in plain English.
When people prepare a Maine quitclaim deed, the first cost question is usually simple: “Will I have to pay transfer tax?” Maine does have transfer tax on many real estate transfers, but some transfers qualify for exemptions.
Important Maine Transfer Tax Note:
Maine Real Estate Transfer Tax is generally $2.20 for each $500 of value or fractional part of $500.
Example: if the taxable value is $100,000, the standard Maine transfer tax would generally be about $440 total.
The tax is generally split half to the seller or grantor and half to the buyer or grantee.
For transfers on or after November 1, 2025, Maine adds an additional higher-rate tier on the portion of value above $1 million.
Exemptions are listed in Maine Revised Statutes Title 36, section 4641-C. The exemption must match the actual transfer.
What Is a Maine Transfer Tax Exemption?
A Maine transfer tax exemption is a legal reason why a real estate transfer is not subject to Maine Real Estate Transfer Tax.
In plain English, an exemption means the deed may still be recorded and Form RETTD may still be needed, but the transfer tax may not be due because the transaction fits one of Maine’s statutory exemption categories.
The exemption should be claimed clearly on the Maine Real Estate Transfer Tax Declaration.
How Do You Claim an Exemption?
Maine Form RETTD includes an exemption claim section.
The form instructions indicate that if either the grantor or grantee is claiming an exemption from transfer tax, the exemption box should be checked and the explanation entered.
The explanation should match the actual transfer and the correct Maine exemption category.
Important:
Do not simply write “exempt” without understanding why the transfer is exempt. The exemption should fit the deed and the facts of the transfer.
Official Maine Exemption Sources
The official exemption statute and Maine Revenue Services transfer tax resources are the best places to start.
Common Maine Transfer Tax Exemptions
Maine law lists several transfers that are exempt from Real Estate Transfer Tax.
Common exemption categories include:
- deeds to property transferred to or by the United States, the State of Maine, or governmental entities
- mortgage deeds, discharges of mortgage deeds, and partial releases of mortgage deeds
- deeds that confirm, correct, modify, or supplement a previously recorded deed without changing ownership
- deeds between spouses, parent and child (including step-children), or grandparent and grandchild, when the property is transferred without actual consideration
- deeds between spouses in divorce proceedings when the transfer is made under the divorce decree
- tax deeds
- deeds of partition
- deeds made under corporate mergers, consolidations, or reorganizations in certain situations
- deeds to a trustee, nominee, or straw party in certain situations
- deeds given pursuant to the United States Bankruptcy Code
- deeds by public officials performing official duties
- certain foreclosure-related deeds
- certain transfers to a revocable living trust when the transfer does not change beneficial ownership
- certain transfers by a subsidiary corporation to its parent corporation without actual consideration
- certain transfers of controlling interests in an entity when already taxed under the controlling-interest transfer rules
Important:
This is a plain-English summary, not the full statutory text. Always compare the actual transfer to Maine Title 36, § 4641-C before claiming an exemption.
Gift Transfers and Family Transfers
Many quitclaim deeds are used for family transfers, estate planning, or gifts. The good news: Maine specifically exempts deeds between spouses, between parent and child (including step-children), or between grandparent and grandchild, as long as the property is transferred without actual consideration.
That last part matters. The exemption applies to a genuine no-payment gift. If real money changes hands, even between close family members, this particular exemption may not apply, and the transfer could be taxable based on the amount paid.
Form RETTD is still generally required even for an exempt family transfer, with the exemption clearly identified. Maine's exemption list also includes other specific situations, such as divorce-related transfers and certain transfers to revocable living trusts, but each must fit the statute.
If the transfer doesn't fit an exemption, transfer tax may still be calculated based on the property value.
How Is the Property Value Decided?
Maine Revenue Services explains that authorized originators filing Real Estate Transfer Tax Declarations must include the adjusted assessed value of the real estate being conveyed.
In plain English, the adjusted assessed value is based on the municipal assessed value divided by the certified ratio for the municipality where the property is located.
The municipal assessor is the practical source for the assessed value and certified ratio information.
If a transfer is exempt, value information may still be needed on Form RETTD so the transfer can be properly reported.
Sample Maine Exemption Wording
If an exemption applies, Form RETTD should identify the exemption. The exact wording depends on the facts.
Example:
Exempt from Maine Real Estate Transfer Tax pursuant to 36 M.R.S. § 4641-C(__).
Fill in the subsection that actually applies to the transfer. Do not use this wording unless the transfer fits the exemption.
How Much Would the Tax Be If No Exemption Applies?
Maine transfer tax is easy to estimate once you know the taxable value.
- $50,000 taxable value = about $220 total transfer tax
- $100,000 taxable value = about $440 total transfer tax
- $250,000 taxable value = about $1,100 total transfer tax
- $500,000 taxable value = about $2,200 total transfer tax
For transfers on or after November 1, 2025, additional tax applies to the portion of value above $1 million.
Common Maine Transfer Tax Exemption Mistakes
- Assuming every family transfer is exempt
- Assuming every gift transfer is exempt
- Forgetting to file Form RETTD
- Failing to check the exemption box on Form RETTD when claiming an exemption
- Writing “exempt” without explaining the statutory basis
- Using the wrong exemption category
- Failing to include value information when required
- Confusing Registry recording fees with Real Estate Transfer Tax
- Recording in the wrong county or registry district
How This Fits Into the Maine Quitclaim Deed Process
When preparing a Maine quitclaim deed, review the transfer tax issue before recording.
If the transfer is taxable, the Registry of Deeds collects the tax when the deed is recorded. If the transfer is exempt, the exemption should be claimed correctly on the Real Estate Transfer Tax Declaration (Form RETTD).
Return to the main Maine Quitclaim Deed Instructions page for the complete step-by-step guide.
Maine Real Estate Transfer Tax Exemptions FAQ
Where are Maine transfer tax exemptions listed?
Maine Real Estate Transfer Tax exemptions are listed in Title 36, section 4641-C of the Maine Revised Statutes.
How do I claim a Maine transfer tax exemption?
Form RETTD includes an exemption claim section. If either party claims an exemption, the exemption box should be checked and an explanation should be entered.
Are Maine gift transfers automatically exempt?
Often yes for close family. Maine exempts deeds between spouses, parent and child, or grandparent and grandchild when made without actual consideration. Form RETTD is still generally required, with the exemption identified.
How much is Maine transfer tax if no exemption applies?
Maine transfer tax is generally $2.20 for each $500 of value or fractional part of $500. For example, a $100,000 taxable value would generally produce about $440 total transfer tax.
Is this legal advice?
No. This page provides general educational information and is not legal advice.