When sellers look over a Maryland settlement statement for the first time, the government taxes often catch their eye. On many sales, transfer and recordation taxes add up to more than the title company’s fees combined. They’re also one of the reasons settlement costs differ so much from one county to the next. A house in Carroll County and a house of the same price in Baltimore County can carry very different tax bills.
I’m Evan Weissman. I buy houses across Maryland and see these taxes on every settlement statement. Here’s a plain explanation of each tax, where the rates come from, and how to estimate your share.
Three separate taxes
Most Maryland home sales involve three taxes on the deed:
- State transfer tax. Set by Tax-Property section 13-203 at 0.5% of the consideration, the same everywhere in Maryland. For a qualifying first-time Maryland home buyer, the rate is 0.25%.
- County (local) transfer tax. Set by each county. Some charge nothing; others charge 1% or more.
- Recordation tax. Charged by each county per $500 of consideration, with rates set locally.
These are collected when the deed is recorded with the circuit court clerk in the county where the property sits.
Every county’s rates
The Department of Legislative Services publishes the rates each year in its county tax rate tables. Here are the fiscal 2026 rates:
| County | Recordation per $500 | Local transfer tax |
|---|---|---|
| Allegany | $3.50 | 0.5% |
| Anne Arundel | $3.50 | 1.0% (plus 0.5% surcharge at $1 million or more) |
| Baltimore City | $5.00 | 1.5% |
| Baltimore County | $2.50 | 1.5% |
| Calvert | $5.00 | 0% |
| Caroline | $5.00 | 0.5% |
| Carroll | $6.50 | 0% |
| Cecil | $4.10 | 0.5% |
| Charles | $7.00 | 0.5% |
| Dorchester | $5.00 | 0.75% |
| Frederick | $7.00 | 0% |
| Garrett | $3.50 | 1.0% |
| Harford | $3.30 | 1.0% |
| Howard | $2.50 | 1.25% |
| Kent | $3.30 | 0.5% |
| Montgomery | Varies | Varies by value |
| Prince George’s | $2.75 | 1.4% |
| Queen Anne’s | $4.95 | 0.5% |
| St. Mary’s | $4.00 | 1.0% |
| Somerset | $3.30 | 0% |
| Talbot | $6.00 | 1.0% |
| Washington | $3.80 | 0.5% |
| Wicomico | $3.50 | 0% |
| Worcester | $3.30 | 0.5% |
Source: Department of Legislative Services county tax rates. Some counties have local exemptions or reduced rates for certain buyers. Washington County, for example, exempts the first $50,000 from its transfer tax and offers a reduced rate for some first-time county buyers. Montgomery County’s rates depend on the property’s value, so confirm with the county or your title company. Rates can change, so always verify before settlement.
Who pays which share
Maryland Real Property section 14-104 presumes that recordation tax and state and local transfer taxes are split equally between buyer and seller, unless the contract says otherwise.
There’s a major exception. When the buyer is a first-time Maryland home buyer who will live in the house:
- The seller pays the entire state transfer tax, at the reduced 0.25% rate.
- The seller also pays the entire recordation tax and local transfer tax, unless the contract expressly says otherwise.
My articles on who pays closing costs and first-time buyer tax rules for sellers go into this in more detail.
Sample calculation
Here’s a hypothetical $250,000 sale in Harford County with a standard 50/50 split, using the rates above:
- State transfer tax: 0.5% of $250,000 is $1,250. Seller’s half: $625.
- Harford County transfer tax: 1.0% of $250,000 is $2,500. Seller’s half: $1,250.
- Recordation tax: $250,000 divided by $500 is 500, times $3.30 is $1,650. Seller’s half: $825.
Seller’s total in this example: $2,700. Change the county and the numbers change. The same price in Carroll County, with no local transfer tax but a $6.50 recordation rate, would put the seller’s share at $625 state transfer plus $1,625 recordation, or $2,250.
How these taxes show up in a cash sale
The taxes apply whether the buyer pays cash or uses a loan. The contract still decides how they’re split. Some cash buyers agree to pay a larger share; others stick with the default. Read the closing cost section of any offer carefully, and plug the numbers into a seller net sheet.
Things that can change the bill
- First-time buyer status shifts more of the tax to the seller.
- Local exemptions in some counties reduce the taxable amount.
- Price drives all three taxes, so a lower sale price means lower taxes.
- Certain transfers, such as some between family members or into trusts, may qualify for exemptions. Ask the title company or an attorney.
Where to verify rates
Your title company will calculate these taxes precisely. You can also check the circuit court clerk’s office or county finance office for your county. For Baltimore County specifically, see my Baltimore County transfer and recordation overview.
What is the Maryland state transfer tax rate?
0.5% of the consideration, reduced to 0.25% for a qualifying first-time Maryland home buyer, under Tax-Property section 13-203.
Which Maryland counties have no local transfer tax?
According to the Department of Legislative Services table, Calvert, Carroll, Frederick, Somerset, and Wicomico list a 0% local transfer tax.
Is recordation tax the same as transfer tax?
No. Recordation tax is a separate county tax charged per $500 of consideration. Transfer taxes are percentages of the price charged by the state and many counties.
Do sellers always pay half of these taxes?
That’s the default under Maryland law unless the contract says otherwise. Sellers pay more when the buyer is a qualifying first-time Maryland home buyer.
Talk through your situation
If you’d like help estimating the taxes on your own sale, call or text me at (410) 498-7473. I’ll run the numbers for your county with you.