Annapolis is the state capital and the county seat of Anne Arundel County, and it’s also a city with its own government. That’s what makes selling here different from Severna Park or Arnold. A house inside city limits pays a city tax, uses city water and sewer, and has to clear a city step before the deed can be recorded.
I’m Evan Weissman. I buy houses around Annapolis and the rest of Anne Arundel County. This guide covers what’s specific to selling inside the city, plus the county rules that apply either way.
City limits vs. an Annapolis address
Plenty of homes with an Annapolis mailing address sit outside the city, in places like Parole, Riva, Annapolis Neck, and Cape St. Claire. Those homes pay county and state tax only. Before you look at any of the city rules below, check SDAT’s real property search to see whether your parcel is inside the City of Annapolis.
Three layers of property tax
The 2026-2027 SDAT tax rate table shows these rates per $100 of assessed value for homes inside the city:
- City of Annapolis: 0.7380
- Anne Arundel County, inside the city: 0.5770
- State: 0.1120
- Combined: 1.4270
Outside the city, Anne Arundel’s county rate is 0.9680, so the combined rate is 1.0800. SDAT shows a lower county rate inside the city, which reflects services the city provides itself. The homestead caps differ too. The county’s cap is 2%, and the city’s is 10%.
Deed taxes in Annapolis
The city doesn’t add its own transfer tax. Anne Arundel County’s recordation and transfer tax page lists the county transfer tax at 1%, with a higher rate on transfers of $1 million or more, and recordation at $3.50 per $500. The state transfer tax is 0.5%, or 0.25% for a first-time Maryland homebuyer.
On a $500,000 sale before exemptions, that’s $2,500 state transfer tax, $5,000 county transfer tax, and $3,500 recordation, for $11,000 total. Under the default equal split, each side pays $5,500.
The city’s deed stamp step
This is the part that surprises people. According to the City of Annapolis Finance Office’s real property transfer form, a deed for property in the city won’t be validated for recording until all water and sewer service is paid through the transfer date, billed or not. The city charges a $50 fee per tax ID and water account for the transfer. Open city citations have to be paid, with proof, before the city will stamp the deed.
Your title company usually handles the request, but you can save time by checking for open citations with Planning and Zoning at 410-263-7961. Utility billing questions go to the Finance Office at 410-263-7952.
The historic district
The historic downtown, around State Circle and Main Street, is a local historic district. Exterior changes there go through the city’s Historic Preservation Commission. If you’ve replaced windows, siding, or a roof without approval, a buyer’s attorney may ask about it. Older homes downtown also usually need the federal lead paint disclosure.
Water, the Critical Area, and flooding
Annapolis is surrounded by water: Spa Creek, Back Creek, College Creek, and the Severn River. Maryland requires most sale contracts to include a Critical Area notice, and lots within about 1,000 feet of tidal waters or wetlands may have extra limits on building and clearing. Low parts of downtown and Eastport see tidal flooding, and buyers will ask about flood insurance and any water that has come into the house.
Taxes behind on an Annapolis house
If you’re behind on property taxes, call the county and the city finance office to confirm what each says you owe. Anne Arundel County’s tax sale document says interest and penalties accrue at 1% a month from October 1, and SDAT’s schedule listed the 2026 county tax sale for June 3. Unpaid city charges can also hold up the deed stamp.
If you’re behind on a mortgage too, talk with your servicer about loss mitigation, call a HUD-approved counselor or Maryland HOPE at 1-877-462-7555, and get advice from an attorney. Selling is only one option.
Annapolis estates
The Anne Arundel County Register of Wills is at 2011 E. Commerce Park Drive in Annapolis, 410-222-1430, according to the Register of Wills site. My article on how long probate takes covers timing, and letters of administration covers what a buyer’s title company will ask for.
Listing in Annapolis vs. a direct sale
Annapolis has strong demand for updated homes, and many sellers do well on the open market. A direct sale can fit a house with historic district problems, flood history, tenants, or a long repair list. See my Anne Arundel County page and Glen Burnie guide for more on the county.
Does Annapolis have its own transfer tax?
No. The county transfer tax and recordation tax apply, plus the state transfer tax. The city does charge a $50 transfer fee tied to its water account.
What is the property tax rate in the City of Annapolis?
For 2026-2027, the combined rate is 1.4270 per $100: 0.7380 city, 0.5770 county, and 0.1120 state.
Why won’t the city stamp my deed?
Usually because water and sewer charges through the transfer date, or an open city citation, haven’t been paid yet.
Is my Annapolis address inside city limits?
Not necessarily. Check SDAT’s real property search, which shows whether a parcel is in the city.
Talk through your situation
If you’re selling in or around Annapolis and want a straight local opinion, call or text me at (410) 498-7473. I’ll tell you honestly if listing is the better fit.