Maryland transfer tax: 0.5% state rate and Baltimore's 1.5%

What taxes apply when a Maryland home changes hands?

A deed recorded in Maryland can carry three taxes, all measured on the price (the “consideration”):

• State transfer tax: 0.5% under § 13-203(a). Consideration includes any mortgage the buyer assumes.
• Local transfer tax: set by each county or Baltimore City.
• Recordation tax: also local. The General Assembly lets Baltimore City and each county set its own rate “per $500 or fraction of $500” of consideration (§ 12-103).

A purchase-money mortgage or deed of trust is not subject to recordation tax if it is signed within 30 days of the deed and recorded within 30 days after the deed is recorded (§ 12-108(i)).

How do the rates compare near Baltimore?

The state tax is the same everywhere. These are the local rates for fiscal year 2027, from the Department of Legislative Services:

*Anne Arundel adds a 0.5% surcharge on transactions of $1 million or more.

Baltimore City and Baltimore County tie for the highest local transfer tax in this group, while Carroll County has none but the highest recordation rate. Always check the jurisdiction where the property sits, because the combined cost differs sharply.

What does Baltimore City add?

Transfer tax. The city taxes the transfer of any freehold estate at 1.5% of the taxable basis (Art. 28 § 17-2(a)). It is paid to the city’s Director of Finance before the deed goes to the Circuit Court clerk for recording.

Recordation tax. The city rate is $5 for each $500 or fraction of the actual consideration (§ 16-1). That equals 1% of the price.

Owner-occupied discount. Both city taxes skip the first $22,000 of consideration when the buyer signs, under oath, that the home will be a principal residence for at least 7 months of the 12 months after the sale. For the transfer tax, this applies only if the total consideration is under $250,000 (§ 17-2(d)); the recordation exemption has no price limit (§ 16-2). The code gives the buyer the entire exemption, whatever the contract says about splitting taxes, unless the seller has agreed to pay all of it or must pay it as described below.

Yield tax above $1 million. On transactions over $1 million, the city adds a yield tax of 15% of the recordation tax collected and 40% of the transfer tax collected (§ 17.1-2). On a $1.2 million sale, the city transfer tax is $18,000, so the yield tax on it is $7,200.

Who pays: the law and the default

Maryland law lets anyone pay by agreement (§ 13-102). If the contract is silent, the law presumes that recordation tax and any state or local transfer tax are shared equally by seller and buyer (Real Property Article § 14-104(b)). That presumption does not apply to mortgages and deeds of trust.

What is the first-time buyer rule?

A “first-time Maryland home buyer” is an individual who has never owned residential property in the state that was his or her principal residence (§ 13-203(b)(1)). When such a buyer will occupy the home:

• The state transfer tax is 0.25%, not 0.5% (§ 13-203(b)(3)).
• The seller pays the entire state transfer tax (Real Property § 14-104(c)(2)).
• The seller also pays all recordation tax and local transfer tax, unless the contract expressly says otherwise (§ 14-104(c)(1)).

Each buyer signs a sworn statement, and with two or more buyers each must qualify (or be a co-signer who will not live there). Our first-time buyer programs page covers financial help.

What is exempt?

Section 13-207 exempts transfers that are also exempt from recordation tax. They include transfers between spouses, to certain relatives, to the government, from an estate, and into some trusts (§ 12-108). Check the exact conditions before relying on one.

Example: a $350,000 Baltimore City home

This is an illustration, not a quote. The buyer will live in the home, and the price is $350,000. Because the price exceeds $250,000, the city transfer tax has no discount, but the recordation tax skips the first $22,000.

If the buyer is a first-time Maryland buyer, the state tax falls to $875 (0.25%) and the seller owes all of it, so the seller pays $9,405 unless the contract says otherwise. Closing costs also include recording fees and lender charges; see closing costs in Maryland and the Baltimore guide.