Maryland Transfer and Recordation Tax

How does transfer and recordation tax work in Maryland?

Transfer and recordation taxes cover the work it takes to transfer and record property titles. In Maryland, you are responsible for the state and county transfer taxes, as well as the county recordation tax. It is customary for the seller and the buyer to split the total transfer and recordation tax amount equally (if no exemptions apply).

The Maryland state transfer tax rate is 0.5%. The county rates are listed below.

Are There Any Exemptions to the Transfer and Recordation Tax?

Yes! There are a number of exemptions at the state and county levels which lead to exemption or reduction in transfer and recordation taxes.

Is this your first time buying property in Maryland and will the property be your primary residence?  

Great news! If you are purchasing your primary residence in Maryland for the first time, half of the state transfer tax amount is exempt, making the tax rate 0.25% of actual consideration instead of 0.5%. To qualify for this discount, you need to provide a statement under oath that states you are indeed a first-time Maryland homebuyer who will occupy the property as your principal residence.

Are you buying property in one of the following counties?

• Allegany
• Baltimore City
• Baltimore County
• Caroline
• Dorchester
• Garrett
• Harford
• Montgomery
• Queen Anne’s
• St. Mary’s
• Talbot
• Washington
• Worcester

Terrific! These counties offer discounts on county transfer tax.

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