What is the Maryland state transfer tax rate?

Maryland charges a state transfer tax of 0.5% of the sale price. For a qualifying first-time Maryland homebuyer, the state rate is reduced to 0.25%, and that reduced state tax must be paid entirely by the seller by statute.

What is Maryland recordation tax?

Recordation tax is charged per $500 of consideration (or fraction thereof) and is set by each county, commonly ranging from about $3.30 to $7.00 per $500. It is paid to record the deed and any new mortgage with the county.

Who pays transfer tax in Maryland, buyer or seller?

By default Maryland transfer and recordation taxes are typically split 50/50 between buyer and seller, though this is negotiable. The exception is the first-time homebuyer state transfer tax, which the seller must pay in full.

Does Baltimore City have a higher transfer tax?

Yes. Baltimore City levies a 1.5% city transfer tax plus recordation tax, on top of the 0.5% state transfer tax, making total transfer-related taxes notably higher than in many counties. Enter your local rate to reflect this.

Is the first-time homebuyer reduction automatic?

No. To get the reduced 0.25% state rate, all buyers must be individuals who have never owned residential real estate in Maryland and the home must be their principal residence. The exemption must be claimed at settlement with a signed statement.

Maryland Real Estate Transfer Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

A Maryland real estate transfer involves several stacked taxes: a 0.5% state transfer tax, a county transfer tax, and a per-$500 recordation tax. This calculator combines them and applies the first-time homebuyer reduction so you can estimate closing-day tax for buyer and seller.

How it works

Maryland transfer-related taxes have three parts. The state transfer tax is a flat percentage of the sale price:

stateTransfer = price × 0.5%          (0.25% for first-time MD buyers)

The county transfer tax is a county-set percentage of the price (0% in some counties, up to 1.5% in Baltimore City). The recordation tax is charged per $500 of consideration, rounding the value up to the next $500:

units        = ceil(price / 500)
recordation  = units × ratePer500

The default split is 50/50 between buyer and seller, except the first-time homebuyer state transfer tax, which the seller pays entirely.

Example

A $400,000 home purchase by a non-first-time buyer in a county with a 1.0% county transfer rate and $5.00 recordation per $500: state transfer is $2,000, county transfer is $4,000, and recordation is ceil(400000/500)=800 units × $5 = $4,000. Total transfer taxes are $10,000, typically split $5,000 each.

Notes

Rates vary widely by county; Baltimore City and several counties have higher transfer taxes, while a few have none. The first-time homebuyer reduction requires all buyers to be Maryland first-time owners using the home as a principal residence. Always confirm current county rates and exemption rules with the Maryland Department of Assessments and Taxation and your title company.