Maryland Closing Costs: Transfer and Recordation Taxes by County

Maryland home sales carry a state transfer tax of 0.5% of the price, plus county transfer and recordation taxes that add roughly 1.4% to 2.5% more for most sales in the counties below.

State Transfer Tax and the First-Time Buyer Break

Under Maryland's Tax-Property Article (Section 13-203), when a first-time Maryland homebuyer (someone who has never owned a principal residence in Maryland) buys a home to live in, the state transfer tax drops to 0.25% and the seller pays all of it. Each buyer signs a statement under oath to qualify.

County Taxes as of September 2026

• Montgomery: transfer tax of 1% on most sales. Recordation tax is $4.45 per $500 up to $500,000, with the first $100,000 exempt for a principal residence, then $6.75 to $11.35 per $500 on amounts above $500,000 (Department of Finance).
• Prince George's: transfer tax of 1.4%; recordation tax of $2.75 per $500 (County Code).
• Howard: transfer tax of 1.25%; recordation tax of $2.50 per $500 (Department of Finance and Circuit Court).
• Anne Arundel: transfer tax of 1%, or 1.5% at $1 million and up; recordation tax of $3.50 per $500 (Office of Finance).
• Baltimore County: transfer tax of 1.5%; recordation tax of $2.50 per $500 (Office of Budget and Finance).
• Baltimore City: transfer tax of 1.5%; recordation tax of $5 per $500. Owner-occupants get the first $22,000 exempt from recordation tax, and from transfer tax if the price is under $250,000. Sales over $1 million add a Yield Tax (City Code).
• Frederick: no county transfer tax; recordation tax of $7 per $500 (County Treasury and Circuit Court).
• Charles: transfer tax of 0.5%; recordation tax of $7 per $500, raised in 2025 (County Code).

Howard and Prince George's also give county transfer tax breaks to certain public employees, such as police and teachers.

Who Pays

Maryland's Real Property Article (Section 14-104) presumes buyer and seller split recordation and transfer taxes equally unless the contract says otherwise. When the buyer is a first-time Maryland homebuyer, the seller pays the county transfer and recordation taxes unless the contract expressly shifts them, and always pays the reduced state tax. Local taxes are negotiable, so read your sales contract closely.

Other Closing Costs

Expect title insurance and settlement fees, recording fees, and prepaid items such as homeowner's insurance and property taxes, plus an initial escrow deposit. Your Loan Estimate lists these, with transfer taxes under "Taxes and Other Government Fees."

Tax figures and exemptions change; confirm current figures with the county and your settlement company at the time you buy. Last reviewed September 2026.

Questions About Closing Costs?

Contact us to go over estimated closing costs for the county where you're buying.