6 common questions, each with a short answer first, then the details and the official sources.
Nick Jungmarker, REALTOR® · Long & Foster · Last reviewed
Short answer
Deed taxes alone on a $400,000 Maryland home total about $7,600 to $12,000 by county, split 50/50 by default, plus lender, title and prepaid costs.
The biggest Maryland-specific cost is deed taxes: on a $400,000 home, the state and county transfer and recordation taxes total about $7,600 in Frederick County to about $12,000 in Baltimore City, and by default the buyer pays half. On top of that come lender fees, title insurance and settlement fees, and prepaid taxes and insurance, which your Loan Estimate lists. First-time Maryland buyers usually pay far less in deed taxes because the law shifts them to the seller. Ask for a county-specific estimate before you make an offer. General information, not legal or tax advice; confirm with a Maryland attorney or CPA.
Related: Maryland Closing Costs by County (2026): Transfer and Recordation Taxes, Who Pays, and First-Time Buyer Breaks · Maryland First-Time Homebuyer Programs in 2026: What You Can Get and How It Works · First-Time Home Buyer Guide for Maryland & DC
Short answer
Split 50/50 by default. For a first-time Maryland buyer, the seller pays the state transfer tax and, unless the contract says otherwise, the county taxes too.
By default, Maryland law presumes the buyer and seller split the recordation tax and the state and county transfer taxes equally, unless the contract says otherwise. When the buyer is a first-time Maryland homebuyer who will live in the home, the seller pays the entire state transfer tax, and also the county transfer and recordation taxes unless the contract expressly says otherwise. Everything except that first-time state transfer tax rule can be negotiated in the contract. General information, not legal or tax advice; confirm with a Maryland attorney or CPA.
Related: Maryland Closing Costs by County (2026): Transfer and Recordation Taxes, Who Pays, and First-Time Buyer Breaks · Selling a Home in Maryland or Washington, DC · Downsizing in Maryland (2026): Buy First or Sell First, Rent-Backs, Decluttering, Transfer Taxes and Capital Gains
Short answer
Qualifying first-time Maryland buyers pay no state transfer tax; it drops to 0.25% and the seller pays it.
A qualifying first-time Maryland homebuyer pays no state transfer tax: the rate drops from 0.5% to 0.25% and the seller pays all of it. To qualify, every buyer on the deed must never have owned a Maryland home as a principal residence (a non-occupying co-signer can be allowed) and must sign a statement under oath at settlement. Under the same law, the seller also pays the county transfer and recordation taxes unless the contract expressly shifts them. Some counties have their own extra breaks, such as Montgomery County's exemption on the first $100,000 of recordation tax for a principal residence. General information, not legal or tax advice; confirm with a Maryland attorney or CPA.
Related: Maryland Closing Costs by County (2026): Transfer and Recordation Taxes, Who Pays, and First-Time Buyer Breaks · Maryland First-Time Homebuyer Programs in 2026: What You Can Get and How It Works · First-Time Home Buyer Guide for Maryland & DC
Short answer
Maryland property tax = state $0.112 per $100 of assessed value plus your county or city rate (and any town rate).
Your bill combines a state rate of $0.112 per $100 of assessed value with your county or Baltimore City rate, plus a town rate if you live in an incorporated municipality, so the total depends on where the home is. SDAT publishes every county and municipal rate each fiscal year. SDAT reassesses each property every 3 years, and increases are phased in. The Homestead Tax Credit can limit how fast the taxable assessment on your primary home rises. General information, not tax advice; confirm with a CPA.
Related: Maryland Closing Costs by County (2026): Transfer and Recordation Taxes, Who Pays, and First-Time Buyer Breaks · Maryland & DC Neighborhood Guide
Short answer
It caps yearly increases in your home's taxable assessment (10% state, lower in many counties). Apply once with SDAT for your principal residence.
The Homestead Tax Credit caps how much the taxable assessment on your principal residence can rise each year: the state cap is 10%, and many counties set lower caps (for fiscal 2027, for example, 4% in Baltimore City and Baltimore County and 3% in Prince George's). You must file a one-time application with SDAT, and you can receive it on only one home, the one you live in. New owners do not inherit the seller's credit, so apply as soon as you buy. General information, not tax advice; confirm with a CPA.
Related: Maryland Closing Costs by County (2026): Transfer and Recordation Taxes, Who Pays, and First-Time Buyer Breaks · First-Time Home Buyer Guide for Maryland & DC
Short answer
The seller's homestead cap ends at sale, so new owners are generally taxed on the full assessment. Apply for the Homestead Tax Credit right away.
Usually because the seller's Homestead Tax Credit ended at the sale. A long-time owner's taxable assessment may have been capped well below the full assessed value, and when the home transfers, the new owner is generally taxed on the full assessment until a new homestead cap starts building. Apply for the Homestead Tax Credit right away if the home is your principal residence, and ask your lender to escrow based on the full assessment so you are not surprised. You can check a property's assessment and credit status on SDAT's site before you make an offer. General information, not tax advice; confirm with a CPA.
Related: Maryland Closing Costs by County (2026): Transfer and Recordation Taxes, Who Pays, and First-Time Buyer Breaks · Buying a Home in Maryland or Washington, DC
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General information, not legal, tax, or lending advice. Laws, rates, and program rules change; confirm with the official source or a Maryland professional. Facts checked October 27, 2026.