Maryland property transfer and recordation taxes are calculated on the total purchase price of a property using a combined rate of 0.5% state transfer tax plus varying county rates, which can range from 0.0% to 1.5%. For example, on a $300,000 home, total transfer tax can exceed $3,000 depending on the jurisdiction and applicable exemptions or credits.
State Transfer Tax: $
County Transfer Tax: $
Total Transfer Tax: $
Maryland Property Transfer & Recordation Tax Fee
The table below shows the combined Maryland state transfer tax rate along with major county-level transfer and recordation tax rates. These rates are used to estimate closing costs on real estate transactions across different jurisdictions.
| County / Jurisdiction | State Transfer Tax | Local Transfer Tax | (Per $500 / Equivalent) |
|---|---|---|---|
| Allegany | 0.5% | 0.0% | $4.10 |
| Anne Arundel | 0.5% | 1.0% – 1.5% | $3.50 |
| Baltimore City | 0.5% | 1.5% | $5.00 |
| Baltimore County | 0.5% | 1.5% | $2.50 |
| Calvert | 0.5% | 0.0% | $5.00 |
| Caroline | 0.5% | 0.5% | $5.00 |
| Carroll | 0.5% | 0.0% | $4.10 |
| Cecil | 0.5% | 0.5% | $4.10 |
| Charles | 0.5% | 0.5% | $7.00 |
| Dorchester | 0.5% | 0.75% | $5.00 |
| Frederick | 0.5% | 0.0% | $7.00 |
| Garrett | 0.5% | 1.0% | $3.50 |
| Harford | 0.5% | 1.0% | $5.00 |
| Howard | 0.5% | 1.25% | $2.50 |
| Kent | 0.5% | 0.5% | $4.10 |
| Montgomery | 0.5% | 1.0% | Tiered Rate |
| Prince George’s | 0.5% | 1.4% | $2.75 |
| Queen Anne’s | 0.5% | 0.5% | $4.95 |
| St. Mary’s | 0.5% | 1.0% | $4.00 |
| Somerset | 0.5% | 0.0% | $3.30 |
| Talbot | 0.5% | 1.0% | $6.00 |
| Washington | 0.5% | 0.5% | $3.80 |
| Wicomico | 0.5% | 0.0% | $5.00 |
| Worcester | 0.5% | 0.5% | $3.30 |
How Maryland Property Transfer & Recordation Tax Works
Maryland property transfer and recordation taxes are applied when real estate ownership changes. These taxes are calculated based on the total purchase price (consideration) and vary depending on state and county rates. The final amount depends on location, exemptions, and whether the property is a primary residence or investment.
Maryland Transfer Tax Formula Explained
Maryland uses a simple formula for calculating transfer tax:
Total Transfer Tax = Purchase Price × Combined Tax Rate
The combined tax rate includes:
- State Transfer Tax: 0.5%
- County Transfer Tax: 0.0% to 1.5% (varies by jurisdiction)
Recordation Tax Explained
Recordation tax is charged when the deed or mortgage is recorded with the county. It is separate from transfer tax and is based on:
- Loan amount or property value (whichever is applicable)
- County-specific recordation rates (varying per jurisdiction)
County Variations in Maryland Taxes
Each county in Maryland applies different tax rates and exemptions. Some counties charge only state tax, while others add both county transfer tax and recordation tax, significantly affecting the final cost of property purchase.
Exemptions and Reductions
Maryland provides several exemptions that may reduce total tax liability:
- First-time homebuyer reduction (state tax may reduce to 0.25%)
- Principal residence exemptions in certain counties
- Fixed dollar exemptions based on property value thresholds
- Owner-occupied property credits in select jurisdictions
Example Calculation
For a property purchased at $300,000 in a county with a 1.0% transfer tax:
- State Tax (0.5%): $1,500
- County Tax (1.0%): 0.00
- Recordation Tax (example 0.7%): $2,100
Total Estimated Tax: $5700.00
Factors That Affect Final Tax Amount
Several factors influence the final transfer tax amount:
- Property location (county rules)
- Purchase price
- Mortgage amount
- Ownership type (primary vs investment)
- Eligibility for exemptions
Why This Calculator Is Useful
This calculator helps buyers and investors quickly estimate Maryland transfer and recordation taxes before closing a deal. It improves budgeting accuracy and helps avoid unexpected closing costs.
Frequently Asked Questions
Is Maryland transfer tax the same in all counties?
No, each county sets its own additional transfer tax rate, which can range from 0% to 1.5%.
Who pays the transfer tax in Maryland?
It can be paid by the buyer, seller, or both depending on the sales agreement.
Is recordation tax mandatory?
Yes, recordation tax is required whenever a deed or mortgage is recorded in Maryland.
Are first-time homebuyers exempt from transfer tax?
They may receive a reduced state transfer tax rate of 0.25% under qualifying conditions.
Is transfer tax based on market value or purchase price?
It is calculated on the actual purchase price (consideration), not the assessed value.