Selling a home in Maryland costs less than most sellers fear — the taxes are the part people miss. Between the state transfer tax, county transfer and recordation taxes, and commission, a Maryland seller typically pays a few percent of the sale price at closing. This guide breaks down exactly what comes out of your proceeds in 2026, county by county, and one big cost that isn’t yours to pay.
Key Takeaways
- Maryland’s state transfer tax is 0.5%, and county transfer + recordation taxes are split 50/50 with the buyer by default — so a seller’s tax share runs roughly 1.1%–1.5% of the price (Md. Real Property §14-104).
- The average buyer-agent commission was 2.42% in Q3 2025 (Redfin) — and after the 2024 NAR settlement it’s fully negotiable, not automatic.
- In Maryland, title insurance is a buyer cost, not a seller one (Maryland Insurance Administration) — so don’t budget for it.
- One twist: when your buyer is a first-time Maryland buyer, the seller pays 100% of the county transfer + recordation tax — which raises your bill.
What are the closing costs for a seller in Maryland?
A Maryland seller’s closing costs fall into two big buckets: transfer and recordation taxes, and the real estate commission. Everything else — settlement fees, prorated property taxes, an existing mortgage payoff — is smaller or specific to your situation. The single biggest thing to understand is that Maryland splits its transfer taxes between buyer and seller by default, so you’re not paying the whole bill.
By statute, the county transfer tax and recordation tax are “shared equally between grantor and grantee” unless the contract says otherwise (Md. Real Property §14-104). That 50/50 default is negotiable — but it’s where most Maryland sales land.
What transfer and recordation taxes does a Maryland seller pay?
Maryland charges a 0.5% state transfer tax on the sale price (Md. Tax-Property §13-203), plus a county transfer tax and a recordation tax that vary by jurisdiction. Split 50/50, a seller’s combined tax share works out to roughly 1.1% to 1.5% of the price in the Baltimore and Annapolis metros.
| County | Recordation tax | County transfer tax | State transfer |
|---|---|---|---|
| Anne Arundel | 0.7% | 1.0% (1.5% if ≥$1M) | 0.5% |
| Baltimore County | 0.5% | 1.5% | 0.5% |
| Howard | 0.5% | 1.25% | 0.5% |
| Baltimore City | 1.0% (1.15% over $1M) | 1.5% (2.1% over $1M) | 0.5% |
Here’s what that looks like in real dollars. Using each county’s June 2026 median sale price and the default 50/50 split, a seller’s transfer + recordation tax lands roughly here — an illustration, since your contract sets the actual allocation:
The first-time-buyer twist that raises your tax bill
Here’s a rule most sellers don’t know until closing. When your buyer is a first-time Maryland homebuyer, the law flips the split: the seller pays the entire county recordation and transfer tax (Md. Real Property §14-104(c)), and the state transfer rate drops to 0.25% — also seller-paid — under Md. Tax-Property §13-203(b).
In plain terms: selling to a first-time buyer can increase your tax cost versus a standard 50/50 sale, because your share of the county taxes jumps from half to all of it. It’s not a reason to avoid first-time buyers — they’re a huge share of the market — but it’s a number your agent should model into your net sheet before you accept an offer.
How much is commission, and what changed after the NAR settlement?
Commission is usually a seller’s largest closing cost, and it’s changed. As of Q3 2025 the average buyer-agent commission was 2.42%, up slightly from 2.36% a year earlier (Redfin, 2025). By price tier, it ran about 2.52% under $500,000 and 2.32% in the $500,000–$1M range.
The bigger shift is structural. Since the August 2024 NAR settlement, offers of buyer-agent compensation can no longer be posted on the MLS, and buyers sign a written agreement with their own agent before touring. As a seller, you’re no longer expected by default to advertise buyer-agent pay — it’s separately negotiated, and if you agree to contribute, it comes out of your proceeds. Total commission is fully negotiable; historically it has run in the 5–6% range combined, but there’s no fixed rate. This is exactly the kind of line we model in our guide to selling a home in Maryland.
What Maryland sellers don’t pay: title insurance
One cost sellers often over-budget for: title insurance. In Maryland, the buyer purchases the lender’s title policy and chooses the title company, and any owner’s policy is also the buyer’s to buy (Maryland Insurance Administration). So unless you specifically agree to cover it as a concession, title insurance is not a seller line item.
What is yours: your existing mortgage payoff, a prorated share of property taxes and any HOA dues up to closing, and any settlement or document fees your title company charges the seller side. Your agent and title company give you an exact figure a few days before closing.
So what will you actually net?
Add it up and a typical Maryland seller keeps most of their equity. On a median-priced home, expect roughly 1.1%–1.5% in transfer and recordation taxes, plus whatever commission you negotiate, minus your mortgage payoff and small prorations. The single best move is to get a real net sheet — your sale price from live Bright MLS comps, minus every cost — before you list, so the number at the table is the number you planned for.
Ready to see your numbers?
Every sale is different, and the taxes shift by county and by who your buyer is. Request a free seller’s net sheet and we’ll build your bottom line from live Bright MLS comps for your exact address — sale price, taxes, commission, and payoff, all in one place. Explore our full seller resources to see what listing with Next Step looks like.
Frequently Asked Questions
Do Maryland sellers pay transfer tax?
Yes, in part. Maryland’s 0.5% state transfer tax and the county transfer and recordation taxes are split 50/50 between buyer and seller by default (Md. Real Property §14-104), so a seller’s share runs about 1.1%–1.5% of the price. The split is negotiable in the contract.
Who pays title insurance in Maryland, the buyer or the seller?
The buyer. In Maryland the buyer purchases the lender’s title policy, chooses the title company, and buys any owner’s policy (Maryland Insurance Administration). Title insurance is not a standard seller cost unless the seller agrees to cover it as a concession.
How much is commission to sell a house in Maryland?
It’s negotiable. The average buyer-agent commission was 2.42% in Q3 2025 (Redfin), and since the 2024 NAR settlement sellers are no longer expected to advertise it by default. Total commission has historically run in the 5–6% range combined, but there is no fixed rate.
Does selling to a first-time buyer cost the seller more?
It can. When the buyer is a first-time Maryland buyer, the seller pays the entire county recordation and transfer tax (Md. Real Property §14-104(c)) plus the reduced 0.25% state transfer tax (Md. Tax-Property §13-203(b)) — shifting from a 50/50 split to the seller covering all of it. Ask your agent to model it into your net sheet.
What is the average home price in Maryland right now?
The statewide median sale price was $465,000 in June 2026, up 3.3% year over year (Maryland REALTORS®). By county it ranged from $266,500 in Baltimore City to $675,850 in Howard County, so your closing costs scale with your local price.
Sources
- Md. Code, Tax-Property §13-203 (state transfer tax), retrieved 2026-08-10, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp§ion=13-203
- Md. Code, Real Property §14-104 (default 50/50 split + first-time-buyer rule), retrieved 2026-08-10, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp§ion=14-104
- Gordon Feinblatt LLC, “Recordation and Transfer Tax Rates in Maryland Explained” (rates as of Oct 1, 2025), retrieved 2026-08-10, https://www.gfrlaw.com/what-we-do/insights/recordation-and-transfer-tax-rates-maryland-explained
- Redfin, “The Average Buyer’s Agent Commission Has Risen Slightly…” (Q3 2025, Dec 8, 2025), retrieved 2026-08-10, https://www.redfin.com/news/commissions-q3-2025/
- National Association of REALTORS®, NAR Settlement FAQs, retrieved 2026-08-10, https://www.nar.realtor/the-facts/nar-settlement-faqs
- Maryland Insurance Administration, “Title Insurance FAQs,” retrieved 2026-08-10, https://insurance.maryland.gov/Consumer/Documents/publicnew/FAQs-Title-Insurance-Final.pdf
- Maryland REALTORS®, “Housing Statistics — June 2026,” retrieved 2026-08-10, https://www.mdrealtor.org/HousingStats