These are among the largest line items on a Maryland settlement statement — and the ones people understand the least. Here’s a plain-English breakdown, a county-by-county rate table, and the first-time buyer break that can save you thousands.
When you buy or sell property in Maryland, the state and your county collect a set of one-time taxes just for putting the deed and mortgage on public record. Together they can add up to roughly 1.2% to 3.75% of the purchase price, depending on where the property sits and how big the transaction is. On a $500,000 home, the taxes on the deed alone run from about $6,000 to $15,000 — real money that too often surprises people at the settlement table.
The good news: these taxes are predictable. Once you know the four pieces and your county’s rates, you can estimate your closing cost almost to the dollar — and, if you qualify as a first-time Maryland buyer, capture a meaningful discount. This guide walks through how the system works, then hands you a reference table for all 24 Maryland jurisdictions.
The four taxes, in plain English
What people loosely call “the transfer tax” is really up to four separate charges. Most transactions involve the first three; the fourth applies only in Baltimore City on larger deals.
Recordation tax
An excise tax for the privilege of recording your deed and mortgage in the county land records. It’s charged per $500 of the price (and separately on the loan amount), and the rate is set by each county.
Charged on the deed & the mortgage
State transfer tax
A flat 0.5% of the price, collected statewide. It applies to the deed only — never to your mortgage or deed of trust. First-time Maryland buyers pay half.
Charged on the deed only
County (local) transfer tax
An optional tax each county may add, ranging from 0% to 1.5%. Some counties charge nothing; others are among the highest costs in the deal. In Prince George’s County it also hits the mortgage.
Varies by county — 0% to 1.5%
Baltimore City “yield tax”
A surcharge that applies only in Baltimore City, and only when the deal exceeds $1 million. It adds 15% on top of the recordation tax and 40% on top of the city transfer tax.
Baltimore City, over $1M only
The recordation tax is charged twice in a purchase — once on the sale price (the deed) and again on the loan amount (the mortgage). The transfer taxes apply only to the deed. That’s why a large mortgage can quietly raise your recordation bill even on a modestly priced home.
Who pays what — and can you negotiate it?
By default, Maryland law presumes the buyer and seller split the state and county transfer taxes equally unless the contract says otherwise. So the standard 0.5% state transfer tax is typically 0.25% from each side. Recordation tax is likewise negotiable and often split, though local custom varies by county.
Because these are contract terms, they’re fair game in negotiation. In a buyer’s market a seller may agree to absorb more; in a seller’s market the buyer often covers the bulk. The one firm rule: when the buyer is a qualifying first-time Maryland buyer, the law shifts the entire state transfer tax onto the seller — see below.
The first-time Maryland buyer break
If you’re buying an improved residential property as your principal residence and you’ve never owned a home in Maryland before, the state transfer tax is cut from 0.5% to 0.25% — and the seller must pay all of it. On a $400,000 home, that’s a $2,000 charge you avoid entirely, plus a lower rate on top.
The reduced 0.25% rate applies to the state transfer tax, and by statute the seller is responsible for the whole amount. Several counties mirror this treatment for their local transfer tax as well, and many offer additional exemptions on the first slice of the price for owner-occupants (for example, Baltimore City exempts the first $22,000 for an owner-occupied residence). To qualify, every buyer on the deed generally must be a first-time Maryland homeowner who will actually live in the property.
What it looks like on a real closing
Numbers make this concrete. Here’s a $500,000 home purchase in Anne Arundel County with a $400,000 mortgage, using a standard equal split of the transfer taxes between buyer and seller.
| Recordation tax on the deed (0.7% × $500,000) | $3,500 |
| Recordation tax on the mortgage (purchase-money loan — exempt) | $0 |
| State transfer tax (0.5% × $500,000) | $2,500 |
| County transfer tax (1.0% × $500,000) | $5,000 |
| Total recording & transfer taxes | $11,000 |
Swap in a different county and the total moves substantially: the same purchase would run about 1.5% of price in Calvert or Carroll County (which charge no local transfer tax) versus roughly 3% in Baltimore City. Location is the single biggest variable, which is why the table below matters.
Common exemptions worth knowing
Maryland law exempts a long list of transfers from some or all of these taxes. The ones that most often apply to individuals and families include:
Transfers between spouses or domestic partners — including under a divorce decree or property settlement — are generally exempt.
Transfers between close relatives (such as parent to child) can be exempt from recordation tax, and a mortgage the relative takes subject to may be treated favorably.
Purchase-money mortgages — the loan you take out to buy the home — are exempt from recordation tax to the extent they secure the purchase price.
Refinances of your principal residence are exempt from recordation tax on the amount of the existing loan being paid off, so you’re only taxed on any new money.
Transfers to or from an estate, or into a revocable living trust for the same beneficial owners, are typically exempt as well.
Exemptions turn on specific facts and the right paperwork — often a signed affidavit filed with the deed. A missed affidavit can mean paying a tax you didn’t owe. Confirm eligibility with your title company or advisor before closing.
============ REFERENCE GUIDE ============
Maryland Recordation & Transfer Tax Rates by County
Rates for all 24 Maryland jurisdictions (Baltimore City is treated as a county). The “Total for a deed” column combines recordation, county transfer, and the 0.5% state transfer tax — the all-in rate applied to a straightforward home sale. Your mortgage is taxed separately at the recordation rate.
| County / City | Recordation | County transfer | State transfer | Total for a deed |
|---|---|---|---|---|
| Allegany | 0.70% | 0.50% | 0.50% | 1.70% |
| Anne Arundel | 0.70% | 1.00% (1.50% if $1M+) | 0.50% | 2.20% (2.70% if $1M+) |
| Baltimore City | 1.00% (1.15% over $1M) | 1.50% (2.10% over $1M) | 0.50% | 3.00% (3.75% over $1M) |
| Baltimore County | 0.50% | 1.50% | 0.50% | 2.50% |
| Calvert | 1.00% | None | 0.50% | 1.50% |
| Caroline | 1.00% | 0.50% | 0.50% | 2.00% |
| Carroll | 1.30% | None | 0.50% | 1.50% |
| Cecil | 0.82% | 0.50% | 0.50% | 1.82% |
| Charles | 1.40% | 0.50% | 0.50% | 2.40% |
| Dorchester | 1.00% | 0.75% | 0.50% | 2.25% |
| Frederick | 1.40% | None | 0.50% | 1.90% |
| Garrett | 0.70% | 1.00% | 0.50% | 2.20% |
| Harford | 0.66% | 1.00% | 0.50% | 2.16% |
| Howard | 0.50% | 1.25% | 0.50% | 2.25% |
| Kent | 0.66% | 0.50% | 0.50% | 1.66% |
| Montgomery | Tiered — see below | 1.00% | 0.50% | See schedule |
| Prince George’s | 0.55% | 1.40% (also on loans) | 0.50% | 2.45% |
| Queen Anne’s | 0.99% | 0.50% | 0.50% | 1.99% |
| St. Mary’s | 0.80% | 1.00% | 0.50% | 2.30% |
| Somerset | 0.66% | None | 0.50% | 1.16% |
| Talbot | 1.20% | 1.00% | 0.50% | 2.70% |
| Washington | 0.76% | 0.50% | 0.50% | 1.76% |
| Wicomico | 0.70% | None | 0.50% | 1.20% |
| Worcester | 0.66% | 0.50% | 0.50% | 1.66% |
State transfer halves to 0.25% for first-time MD buyers
Total for a deed = recordation + county + state transfer
Many counties exempt the first slice of an owner-occupied purchase from the county transfer tax if the buyer signs an affidavit — for example, the first $50,000 in Anne Arundel, Talbot, Washington, and Worcester; the first $22,000 in Baltimore County and Baltimore City; and reduced first-time-buyer rates in several others. These breaks aren’t automatic, so ask your title company which affidavit applies.
Montgomery County: a tiered recordation tax
Montgomery County doesn’t use a single flat recordation rate. Since October 1, 2023 (Bill 17-23) it applies escalating rates by price band, so higher-priced homes pay progressively more. The first $100,000 is exempt for an owner-occupied principal residence. The county transfer tax remains a flat 1.0% and the state transfer tax a flat 0.5%.
| Portion of the price | Recordation rate on that portion | Effective rate |
|---|---|---|
| First $500,000 | $4.45 per $500 | 0.89% |
| $500,000.01 – $600,000 | $6.75 per $500 | 1.35% |
| $600,000.01 – $750,000 | $10.20 per $500 | 2.04% |
| $750,000.01 – $1,000,000 | $10.78 per $500 | 2.156% |
| $1,000,000.01 and over | $11.35 per $500 | 2.27% |
The rate applies to each band separately — much like income tax brackets. A $700,000 owner-occupied home, for instance, is taxed at 0% on the first $100,000, then 0.89% up to $500,000, then 1.35% on the next $100,000, and 2.04% on the final $100,000.
Frequently asked questions
Is the transfer tax based on the sale price or the assessed value?
For a normal arm’s-length sale, it’s based on the actual consideration — the price the buyer pays, including any mortgage the buyer assumes. Certain transfers (like some business or dissolution transfers) are instead taxed on the SDAT-assessed value, but for a typical home purchase, the contract price governs.
Do I pay recordation tax on my mortgage as well as the deed?
Yes — in a purchase you’re recording two instruments, the deed and the mortgage (or deed of trust), and the recordation tax applies to both. The important exception: a purchase-money mortgage used to buy the home is exempt from recordation tax to the extent it secures the price, so many buyers only pay recordation on the deed. Transfer taxes never apply to the mortgage.
I’m refinancing. Will I owe these taxes again?
Refinancing your principal residence is exempt from recordation tax on the amount of the existing loan you’re paying off. You’d only be taxed on any additional “new money” borrowed above the old balance. Transfer taxes don’t apply to a refinance at all, since no deed changes hands.
Who counts as a “first-time Maryland home buyer”?
Generally, someone who has never owned residential real property in Maryland that was their principal residence, and who will occupy the new home as their principal residence. If there are co-buyers, all of them typically need to qualify (with limited exceptions for a co-signer who won’t live there). Qualifying cuts the state transfer tax to 0.25% and shifts it entirely to the seller.
Can the buyer and seller agree who pays?
Mostly, yes. Absent a contrary agreement, Maryland presumes the state and county transfer taxes are split equally, but the contract can allocate them differently. The exception is a first-time-buyer sale, where the seller must pay the state transfer tax regardless of what the contract says.
What is the Baltimore City “yield tax”?
It’s a surcharge unique to Baltimore City that applies to transactions over $1 million. It adds an amount equal to 15% of the recordation tax and 40% of the city transfer tax. That’s why a large Baltimore City deal can reach an all-in rate of about 3.75% versus 3% below the $1 million threshold.
Not legal or tax advice. This article is general information from Blackridge Advisors for educational purposes and is not legal, tax, or financial advice, nor a substitute for guidance from a licensed attorney or tax professional about your specific transaction.
Know your number before you sign
Recording and transfer taxes are one of the few closing costs you can pin down in advance. Blackridge Advisors helps buyers and sellers model the full cost of a Maryland transaction — county by county — so there are no surprises at the table.
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