5 common questions, each with a short answer first, then the details and the official sources.
Nick Jungmarker, REALTOR® · Long & Foster · Last reviewed
Short answer
Half the transfer and recordation taxes by default (more if the buyer is a first-time buyer), the mortgage payoff, liens and prorations.
A Maryland seller typically pays half of the transfer and recordation taxes by default, the mortgage payoff and any liens, and prorated property taxes and HOA or condo dues. If the buyer is a first-time Maryland homebuyer, the seller pays the entire state transfer tax and, unless the contract says otherwise, the county taxes as well. Nonresident sellers may also have state income tax withheld at settlement. Ask for a net sheet that uses your county's actual tax rates. 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
Short answer
Yes, with the state disclaimer form, but you must still disclose known latent defects that threaten health or safety.
Yes. Maryland lets a seller give the buyer a disclaimer statement instead of a full condition disclosure, which says the home is sold as is except as the contract provides. Even then, you must disclose latent defects you actually know about that a careful visual inspection would not reveal and that threaten health or safety. Deliver the form on or before contract signing, because if the buyer does not get it, the buyer can cancel. Buyers can still inspect and negotiate. General information, not legal advice; confirm with a Maryland attorney.
Related: Selling a Home in Maryland or Washington, DC · What to Fix Before Selling a House in Maryland (2026): Repairs, Pre-Listing Inspections and Required Disclosures
Short answer
Often not: up to $250,000 ($500,000 married) of gain on a primary home is excluded. Maryland's extra 2% does not apply to primary homes under $1.5M.
Often not on a primary home: federal law lets you exclude up to $250,000 of gain ($500,000 for most married couples filing jointly) if you owned and lived in the home for at least 2 of the last 5 years, and Maryland generally starts from your federal income. Gain above the exclusion, or on a rental or second home, is taxed as income. Since 2025 Maryland also adds a 2% tax on net capital gains for filers with federal AGI over $350,000, but a primary residence sold for less than $1,500,000 is excluded from that extra tax. General information, not tax advice; confirm with a CPA.
Related: 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
Maryland withholds 8.75% (individuals) or 8.25% (entities) from nonresident sellers at settlement; exemption form MW506AE is due 21 days before closing.
For sales after June 30, 2025, Maryland withholds 8.75% for nonresident individuals and 8.25% for nonresident entities, collected at settlement before the deed can be recorded. It is a prepayment, not the final tax: you report the actual gain on a Maryland nonresident return and can get back any excess. You may qualify for a full or partial exemption, for example with little or no gain or for certain principal residence sales, by filing Form MW506AE, which must be received at least 21 days before closing. Sellers at $1,500,000 or more can no longer request a tentative refund and must file a full return. General information, not tax advice; confirm with a CPA.
Related: Selling a Home in Maryland or Washington, DC · Real Estate Investing in Maryland & DC · Downsizing in Maryland (2026): Buy First or Sell First, Rent-Backs, Decluttering, Transfer Taxes and Capital Gains
Short answer
Yes. Most Montgomery County houses and townhouses need a radon test within a year before settlement; fixing high results is negotiable.
Yes, for most single-family homes and townhouses (not condos or co-ops): Montgomery County requires a radon test within one year before settlement, with results given to both buyer and seller. The seller must test or let the buyer test, and if the buyer declines, the seller must do it. The law does not require the seller to fix high radon, so buyers who want that should negotiate it in the contract. A few municipalities and certain transfers, such as foreclosures and estate sales, are excluded. General information, not legal advice; confirm with a Maryland attorney.
Related: Selling a Home in Maryland or Washington, DC · Montgomery County Neighborhoods and Homes · What to Fix Before Selling a House in Maryland (2026): Repairs, Pre-Listing Inspections and Required Disclosures
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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.