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Maryland Transfer Tax Explained: What Buyers Owe at Closing in Each County

Closing day surprises hit hardest at the wire transfer line. On a $500,000 home in the seven counties this guide covers, state transfer, county transfer, and recordation taxes add up to roughly $10,800 to $15,000, about 2.2% to 3.0% of the price, based on 2026 rates from the Maryland Department of Legislative Services. Maryland law presumes the buyer and seller split that bill equally, so a typical buyer’s share runs about $5,400 to $7,500. Rates shift the moment you cross a county line, and qualifying first-time buyers can owe none of it. This guide breaks down what buyers owe in Anne Arundel, Baltimore City, Baltimore County, Howard, Harford, Prince George’s, and Montgomery, with the dollar math worked out so nothing on your closing disclosure reads as a surprise.

Key Takeaways

  • Maryland’s state transfer tax is 0.5%, cut to 0.25% for qualifying first-time buyers, with the seller paying the full reduced amount (Md. Code, Tax-Property §13-203, 2026).
  • County transfer taxes range from 0% (Calvert, Carroll, Frederick, Somerset, Wicomico) to 1.5% (Baltimore City and Baltimore County); Harford is 1.0%, Howard 1.25%, Prince George’s 1.4%.
  • Recordation taxes add another $5.00 to $14.00 per $1,000 of price in most counties; Montgomery adds a surcharge above $500,000.
  • For a qualifying first-time buyer, the seller pays the state transfer tax and, unless the contract expressly says otherwise, the county transfer and recordation taxes too (Md. Code, Real Property §14-104).
  • On a $500K Montgomery County home, transfer and recordation taxes total about $11,950, or about $5,975 per side under the default split. Your mortgage adds no recordation tax, because a purchase money deed of trust is exempt.

What Is the Maryland Transfer Tax and Who Pays It?

In 2026, the Maryland state transfer tax is a flat 0.5% of the sale price, charged on every recorded deed in the state, administered by the Maryland Department of Assessments and Taxation under Md. Code, Tax-Property §13-203. The tax is split 50/50 between buyer and seller by default, though contracts can shift the burden. For a qualifying first-time Maryland buyer, the rate drops to 0.25% and the seller pays all of it; the buyer owes no state transfer tax.

Three separate taxes hit the same closing statement. The state transfer tax goes to Annapolis. A county transfer tax goes to the local jurisdiction. A recordation tax (sometimes called the “recording tax” or “stamps”) goes to the clerk who records the deed. All three are calculated on the purchase price in the deed. The deed of trust that secures your purchase loan is exempt from recordation tax as a purchase money deed of trust (Md. Code, Tax-Property §12-108(i)), so the size of your loan does not change these numbers.

Who actually writes the check depends on the contract. Maryland law presumes the buyer and seller share transfer and recordation taxes equally unless the contract says otherwise. The law changes that default when the buyer is a qualified first-time buyer: the seller pays the full, reduced state transfer tax, and also pays the county transfer tax and the recordation tax unless the contract expressly provides otherwise (Md. Code, Real Property §14-104(c)). In that case, a buyer’s default share of all three taxes is zero.

According to Md. Code, Tax-Property §13-203(b), the state transfer tax rate for a sale to a qualifying first-time Maryland homebuyer drops to 0.25% of consideration and is paid entirely by the seller, so the buyer owes none of it. Under Real Property §14-104(c), the seller also pays the county transfer tax and the recordation tax unless the contract expressly says otherwise (Md. Tax-Property §13-203; Md. Real Property §14-104, 2026).

For a complete picture of what you’ll owe at the table, see our closing cost overview and the Maryland Mortgage Program guide for down payment assistance that can offset these costs.

How Much Is Transfer Tax in Each Maryland County?

County transfer tax rates in 2026 range from 0% in Calvert, Carroll, Frederick, Somerset and Wicomico counties to 1.5% in Baltimore City and Baltimore County, per the Department of Legislative Services. Harford charges 1.0%, Howard 1.25% and Prince George’s 1.4%. Recordation taxes layer on top, ranging from $5.00 to $14.00 per $1,000 of consideration. Total combined rates determine your real closing cost burden.

Buyer reviewing a Maryland closing disclosure with a calculator at the settlement table.

County-by-County Comparison Table

County State Transfer Tax County Transfer Tax Recordation Tax (per $1,000) Default Buyer Share Total on $500K (both sides)
Anne Arundel 0.5% 1.0% $7.00 ~1.1% $11,000
Baltimore City 0.5% 1.5% $10.00 ~1.5% $15,000
Baltimore County 0.5% 1.5% $5.00 ~1.25% $12,500
Howard 0.5% 1.25% $5.00 ~1.125% $11,250
Harford 0.5% 1.0% $6.60 ~1.08% $10,800
Prince George’s 0.5% 1.4% $5.50 ~1.225% $12,250
Montgomery 0.5% 1.0% $8.90 ~1.195% $11,950

Source: Maryland Department of Legislative Services and respective county finance offices, retrieved 2026-09-30. Default buyer share is half the total under the statutory 50/50 split.

Montgomery County sets its transfer and recordation rates by price tier; the figures shown apply at $500,000 (Montgomery County Council). The state’s FY2026 rate table lists Montgomery’s rates as variable, so confirm the current tier with your title company.

Using the state and county rates above, Baltimore City carries the highest combined transfer-and-recordation burden of the seven counties in this guide, at roughly 3.0% of price when both buyer and seller shares are summed; Harford and Anne Arundel sit at the low end, close to 2.2% combined.

How Does the Maryland Recordation Tax Work?

The recordation tax is collected by each county’s Clerk of the Circuit Court when a deed is recorded, and is set per $500 of price (shown per $1,000 here). In 2026, rates run from $5.00 per $1,000 in Baltimore County and Howard County up to $14.00 per $1,000 in Charles and Frederick counties, per the Maryland Department of Legislative Services. Montgomery County adds a surcharge above $500,000.

On a purchase, recordation tax is charged once, on the price in the deed. A purchase money deed of trust, the mortgage document recorded with your purchase, is not subject to recordation tax under Md. Code, Tax-Property §12-108(i), so a bigger loan does not raise the bill. On a $500,000 home in Anne Arundel County at $7.00 per $1,000, recordation tax is $3,500, or $1,750 per side under the default split.

Md. Code, Tax-Property §12-103(b) lets each county exempt a specified amount of the price from recordation tax when the buyer will occupy the home as a principal residence. Whether your county offers one, and how much it covers, varies, so confirm with your title company before assuming it applies.

Maryland recordation tax applies to deeds and to many deeds of trust, but a purchase money deed of trust recorded with your purchase is exempt, so a financed purchase is taxed on the deed alone (Md. Code, Tax-Property §12-108(i), 2026).

For buyers using bridge financing or assumable loans, the math gets more complex. Talk to your lender early. A qualified Maryland loan officer can model the exact recordation cost before you write an offer.

What Is the First-Time Homebuyer Transfer Tax Exemption?

Maryland’s first-time homebuyer rules cut the state transfer tax rate in half, from 0.5% to 0.25%, and make the seller pay all of it (Tax-Property §13-203(b)). Under Real Property §14-104(c), the seller also pays the county transfer tax and the recordation tax unless the contract expressly says otherwise. On a $500,000 purchase in the seven counties above, that removes the buyer’s entire default share, roughly $5,400 to $7,500 depending on county.

To qualify, you must never have owned residential real property in Maryland that was your principal residence, and you must intend to occupy this home as your principal residence. Out-of-state prior ownership doesn’t disqualify you. The home must also be improved residential real property, so unimproved lots don’t count. If there are two or more buyers on the deed, each one must qualify, with one exception: a co-signer who is a co-maker or guarantor of the purchase loan and will not live in the home does not disqualify the others (Real Property §14-104(c)(4); Tax-Property §13-203(b)(2)).

Put together, a qualifying first-time buyer’s default share of state transfer, county transfer, and recordation tax is zero. The only way the county transfer tax or recordation tax lands back on the buyer is an express term in the contract, so read that section before you sign.

The exemption is claimed with a statement signed under oath by each buyer, or someone authorized to sign for them, confirming first-time status and that the home will be a principal residence. Your title company prepares it; ask your buyer’s agent to make sure it is on the closing checklist. If a co-buyer on the deed has owned a Maryland principal residence and is not only a non-occupying co-signer on the loan, the first-time buyer rules do not apply.

Maryland’s first-time homebuyer rules reduce the state transfer tax to 0.25% and assign it to the seller, and by default assign the county transfer and recordation taxes to the seller as well, so a qualifying buyer saves their entire default share, about 1.1% to 1.5% of the purchase price across the seven counties in this guide (based on Tax-Property §13-203(b), Real Property §14-104(c), and county rates from the Maryland Department of Legislative Services, 2026).

What Does a $500,000 Closing Look Like in Each County?

A $500,000 purchase shows the real dollar impact across Maryland’s seven major counties. Under the default 50/50 split, a standard buyer’s share of transfer and recordation taxes runs from $5,400 in Harford County to $7,500 in Baltimore City, based on 2026 rates from the Maryland Department of Legislative Services and each county’s finance office. The loan amount doesn’t change these figures, because the purchase money deed of trust is exempt from recordation tax. A qualifying first-time buyer’s default share is $0 in every county.

Standard Buyer (No Exemption), $500K Home, Default 50/50 Split

  • Anne Arundel: $1,250 (state, half) + $2,500 (county, half) + $1,750 (recordation, half) = $5,500
  • Baltimore City: $1,250 + $3,750 + $2,500 = $7,500
  • Baltimore County: $1,250 + $3,750 + $1,250 = $6,250
  • Howard County: $1,250 + $3,125 (county, half of 1.25%) + $1,250 = $5,625
  • Harford County: $1,250 + $2,500 + $1,650 = $5,400
  • Prince George’s: $1,250 + $3,500 + $1,375 = $6,125
  • Montgomery: $1,250 + $2,500 + $2,225 = $5,975

First-Time Buyer Same Numbers, Howard County Example

Run the first-time rules through the Howard County numbers above and the buyer’s share disappears. The buyer’s $1,250 state transfer tax share goes away because the reduced 0.25% rate is paid by the seller, and the buyer’s $3,125 county transfer tax share and $1,250 recordation tax share shift to the seller by default. That is $5,625 in savings versus the standard buyer scenario above.

A first-time homebuyer purchasing a $500,000 home in Howard County in 2026 owes $0 in state transfer tax instead of the standard $1,250, and by default the seller pays the full $6,250 county transfer tax (1.25% of price) and the full $2,500 recordation tax instead of splitting them (Md. Real Property §14-104(c); Howard County Government, 2026).

Buyers comparing Annapolis against Towson at the same price point see a modest gap in closing taxes, roughly $750 on a $500,000 home using the standard buyer shares above (Anne Arundel’s $5,500 versus Baltimore County’s $6,250). Baltimore County’s lower recordation rate only partly offsets its higher county transfer tax.

How Do Maryland Transfer Taxes Compare to Neighboring States?

Maryland’s default buyer share of transfer and recordation taxes, roughly 1.1% to 1.5% of price across the counties above, is well above Virginia’s buyer-side rate, a combined 0.33% state-and-local grantee tax. Pennsylvania’s state realty transfer tax is 1% of the price. Counting both sides of the deal, Maryland’s 2.2% to 3.0% total sits close to Washington, DC’s combined rate: DC charges a 1.45% transfer tax plus a 1.45% recordation tax on residential sales of $400,000 or more, a combined 2.9%.

The gap matters most for cross-border buyers. On this guide’s $500,000 example, a buyer in Anne Arundel County pays about $5,500 under the default split; the equivalent Virginia state-and-local grantee tax on the same purchase with a $400,000 loan comes to about $3,000, roughly $2,500 less. Budget for the difference if you are relocating.

One offsetting factor: Maryland transfer and recordation taxes are added to the buyer’s cost basis for capital gains purposes, per IRS Publication 530. That means you recover them tax-free when you sell, assuming the home appreciates. Ask your tax preparer to confirm how this applies to your situation.

Maryland’s default buyer share of transfer and recordation tax, approximately 1.1% to 1.5% of purchase price in the seven counties in this guide, is well above Virginia’s combined 0.33% state-and-local grantee tax on the deed (Code of Virginia §58.1-801 and §58.1-814, 2026; Maryland Department of Legislative Services, 2026).

How Can Buyers Reduce Maryland Transfer Tax at Closing?

In 2026, three legitimate strategies cut Maryland transfer tax exposure: claim the first-time buyer exemption (it removes your entire default share, about 1.1% to 1.5% of price in these counties), negotiate the split in the contract (the 50/50 default isn’t required), and time the closing to avoid mid-year rate changes that some counties enact each July.

Negotiate the Split in Writing

Maryland law presumes a 50/50 split, but nothing prevents a contract from assigning more of the transfer and recordation taxes to the seller. In a slower market it can be worth asking, especially on a home that has sat unsold.

Use the Maryland Mortgage Program

The state’s Maryland Mortgage Program bundles down payment assistance with income-qualified financing. Combined with the first-time buyer transfer tax exemption, it can meaningfully lower what a qualified buyer brings to the closing table on a typical Baltimore-region purchase; ask your loan officer to run the numbers for your specific program and loan amount.

Watch the Calendar

Counties occasionally adjust recordation rates effective July 1. If your closing is scheduled for late June and the new rate is higher, push to record by month-end. The clerk’s office uses the recording date, not the contract date, to set the rate.

Frequently Asked Questions

Who pays the transfer tax in Maryland, the buyer or the seller?

By default, Maryland law presumes that buyers and sellers split transfer and recordation taxes equally. For qualifying first-time buyers, the seller pays the reduced state transfer tax and, unless the contract expressly says otherwise, the county transfer and recordation taxes too, which saves the buyer about 1.1% to 1.5% of price in the counties in this guide (Md. Code, Real Property §14-104, 2026). Contracts can renegotiate the split.

Are Maryland transfer taxes tax-deductible?

No, transfer and recordation taxes are not deductible as a separate line item on federal returns. They are added to the home’s cost basis under IRS Publication 530, reducing taxable gain when you sell. For most owner-occupants, the $250,000/$500,000 capital gains exclusion under IRS Publication 523 absorbs the gain anyway, making the deferral effectively permanent.

Do I qualify as a first-time Maryland homebuyer if I owned a home in another state?

Yes. Maryland’s first-time buyer rules require only that you’ve never owned residential real property in Maryland as your principal residence; out-of-state prior ownership does not disqualify you (Md. Code, Real Property §14-104(a)). Get your title company to prepare the signed statement early. Read more on first-time buyer programs.

How much is the recordation tax on a refinance in Maryland?

A refinance deed of trust is exempt from recordation tax up to the unpaid principal of the loan it replaces, when the original borrower is refinancing (Md. Code, Tax-Property §12-108(g)). On a $400K refi replacing a $380K balance, recordation tax applies only to the $20K of new money. A purchase money deed of trust owes no recordation tax at all.

The Bottom Line on Maryland Transfer Tax

Under the default 50/50 split, Maryland transfer and recordation taxes will cost most buyers about $5,400 to $7,500 on a $500,000 purchase in these seven counties, with county choice driving most of the variance. A qualifying first-time buyer’s default share is zero. Read your closing disclosure line by line, and ask your agent to walk you through the math before you sign.

Next Step Realty has 125 agents and offices in Timonium and Annapolis. If you’re planning a 2026 purchase or relocating from out of state, talk to a Next Step buyer’s agent before you write your first offer.

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