Maryland Closing Costs by County (2026): Transfer and Recordation Taxes, Who Pays, and First-Time Buyer Breaks

Every Maryland home sale is taxed when the deed is recorded. The state transfer tax is 0.5% of the price everywhere in Maryland. On top of that, most counties charge their own transfer tax, and every county charges a recordation tax, which is quoted per $500 of the price (for example, $5.00 per $500 is 1%).

These are separate from your lender fees, title insurance, and prepaid items. They are often the largest single line on a Maryland closing statement, which is why Nick and his team run the numbers for the specific county before you write an offer.

Rates below are for fiscal year 2026 (July 1, 2025 to June 30, 2026) from the Maryland Department of Legislative Services, with Montgomery County's tiers from the Montgomery County Department of Finance. Counties can change rates each year, so your title company will confirm the rate in effect on your settlement date.

Maryland law (Real Property Article 14-104) presumes that the buyer and seller share the recordation tax and the state and county transfer taxes equally, unless the contract says otherwise. That is the default in every county. It is negotiable: in a competitive market a buyer may offer to cover more, and in a slower one a seller may agree to pay more or give a closing cost credit. Whatever you agree to goes in writing in the contract.

If you have never owned a home in Maryland that was your principal residence, and you will live in this one, two things change. First, the state transfer tax drops from 0.5% to 0.25%, and the seller pays all of it (Tax-Property Article 13-203). On a $400,000 home that is $1,000 paid by the seller instead of $1,000 from each side.

Second, the same law (Real Property Article 14-104) says the seller pays the entire recordation tax and county transfer tax for a first-time Maryland buyer, unless the contract expressly says those taxes will not be paid entirely by the seller. Many contracts address this directly, so read the tax paragraph closely and ask about it before you sign.

To qualify, each buyer on the deed must sign a statement under oath that they are a first-time Maryland buyer and will occupy the home as a principal residence. A co-signer or guarantor who will not live in the home can still be on the purchase if they sign their own statement. Tell your title company early so the paperwork is ready at settlement.

• Montgomery County: if the home will be your principal residence, the first $100,000 of the price is exempt from recordation tax. At the $4.45 per $500 rate that saves $890. This applies to owner-occupants, not only first-time buyers.
• Baltimore City recordation tax: the first $22,000 of the price is exempt if the buyer swears they will live in the home for at least 7 of the first 12 months. That saves $220.
• Baltimore City transfer tax: the same $22,000 exemption applies, but only when the total price is under $250,000.
• Baltimore County: the county lists its 1.5% transfer tax as excluding the first $22,000 of residential transfers. Ask your title company whether your purchase qualifies; it would save $330.
• Howard County and Prince George's County have county transfer tax exemptions tied to specific programs and public service roles. Check with the county or your title company to see if one applies to you.
• Anne Arundel, Frederick, and Charles: no general county-level first-time buyer exemption is listed in the official rate sources above. Check with the county before you count on one.

This assumes a buyer who is not a first-time Maryland buyer, a 50/50 split, and no county exemptions, so it is a conservative starting point. Recordation tax is figured as $400,000 divided by $500 = 800 units, times the county's rate per $500.

Take a first-time Maryland buyer in Montgomery County at $400,000 who will live in the home. The state transfer tax becomes 0.25% = $1,000, paid by the seller. Recordation tax drops to ($400,000 minus $100,000) / $500 = 600 x $4.45 = $2,670 with the principal residence exemption. County transfer tax stays at 1% = $4,000.

If the contract expressly keeps the county taxes split 50/50, the buyer pays half of $2,670 plus $4,000, which is $3,335, and the seller pays the other $3,335 plus the $1,000 state tax. If the contract does not change the default, the seller pays all of it and the buyer's share of deed taxes is $0. That gap is worth negotiating with your eyes open.

Some counties charge more at higher prices. Montgomery County adds premium recordation tiers above $500,000 ($2.30 per $500 on the amount from $500,000 to $600,000, rising to $6.90 per $500 above $1 million, on top of the $4.45 base). Anne Arundel's transfer tax is 1.5% at $1 million or more. If you are shopping above $500,000, ask your title company for an exact figure.

Deed taxes are only part of the picture. These costs vary by lender, title company, loan type, and settlement date, so use your Loan Estimate for real numbers rather than a rule of thumb.

• Lender fees: origination, underwriting, appraisal, and credit report. Varies by lender and loan program; compare Loan Estimates.
• Title insurance: the lender's policy is usually required, and an owner's policy is optional but protects you. Premiums vary by price and title company.
• Settlement or closing fee: charged by the title company for running the settlement. Varies by company.
• Recording fees: small fees to record the deed and deed of trust in the county land records.
• Prepaids and escrows: homeowners insurance, a few months of property taxes for the escrow account, and interest from settlement to the end of the month. These depend on the home, the tax bill, and your closing date.
• Inspections, survey, and HOA or condo fees: varies by property.

• Confirm your first-time Maryland buyer status early and make sure the contract reflects how the deed taxes will be split.
• Ask for a seller closing cost credit when the market allows it.
• Look at Maryland Mortgage Program and county down payment assistance, which can often be used toward closing costs.
• Claim owner-occupant exemptions (Montgomery, Baltimore City, Baltimore County) by telling your title company you will live in the home.

This is general information, not legal or tax advice. Rates and exemptions change, and eligibility depends on your situation, so confirm the exact figures with your title company before settlement.