Closing Costs in Maryland 2026: Transfer and Recordation Tax by County
In Maryland, transfer and recordation taxes are the largest closing cost after the down payment.
Short answer: in Maryland, the biggest closing costs are the state transfer tax (0.5%), the county transfer tax (0% to 1.5%) and the county recordation tax ($2.50 to $7.00 per $500). By default the buyer and seller split them. On a $500,000 home, among the counties in this guide, the buyer’s half runs from about $3,750 in Calvert County to $7,390 in Baltimore City. First-time Maryland buyers usually pay none of them: the seller pays the reduced 0.25% state tax and, unless the contract says otherwise, all of the recordation and county transfer tax.
By Ken Byrne, NMLS #187129 · ALCOVA Mortgage LLC, NMLS #40508 · Updated September 2026
In Maryland, the largest closing costs are taxes set by the state and each county. The good news is that the rules are written down, so you can work out your share before you write an offer. This guide gives every county’s rates, who pays what under Maryland law, how first-time buyers avoid most of it, and what title, recording and prepaid costs add. To see your own numbers, talk to the Ken Byrne Team at JB Financing.
Maryland transfer and recordation tax by county
Three taxes are charged when the deed is recorded. The state transfer tax is 0.5 percent everywhere. Most counties add their own transfer tax, and every county sets the recordation tax rate, which is charged per $500 of the price.
| County | Recordation tax per $500 | County transfer tax | All three taxes on $500,000 | Buyer’s half |
|---|---|---|---|---|
| Calvert | $5.00 | None | $7,500 | $3,750 |
| Washington | $3.80 | 0.5% after the first $50,000 | $8,550 | $4,275 |
| Carroll | $6.50 | None | $9,000 | $4,500 |
| Frederick | $7.00 | None | $9,500 | $4,750 |
| Harford | $3.30 | 1% | $10,800 | $5,400 |
| Anne Arundel | $3.50 | 1% (1.5% at $1 million and up) | $11,000 | $5,500 |
| Montgomery | $4.45 plus tiers above $500,000; first $100,000 exempt for a principal residence | 1% | $11,060 | $5,530 |
| Howard | $2.50 | 1.25% | $11,250 | $5,625 |
| St. Mary’s | $4.00 | 1% | $11,500 | $5,750 |
| Charles | $7.00 | 0.5% | $12,000 | $6,000 |
| Prince George’s | $2.75 | 1.4% | $12,250 | $6,125 |
| Baltimore County | $2.50 | 1.5% | $12,500 | $6,250 |
| Baltimore City | $5.00; first $22,000 exempt for an owner occupant | 1.5% | $14,780 | $7,390 |
Maryland Department of Legislative Services, local tax rates table for fiscal year 2026; county codes and circuit court clerk pages for Montgomery, Howard, Baltimore City, Frederick, Charles, Harford and Washington. Totals include the 0.5 percent state transfer tax. Check for any rate change adopted for fiscal year 2027 before settlement.
Recordation tax is figured on the price, not the loan. The deed of trust for your purchase loan is exempt as long as it is recorded within 30 days of the deed, so you are not taxed twice. A refinance by the original borrower is exempt up to the old loan’s unpaid balance; new money above that is taxed.
Md. Code, Tax-Property 12-108(g) and (i).
Who pays closing costs in Maryland
Maryland law sets the default. Unless your contract says otherwise, the buyer and seller split the recordation tax, the state transfer tax and the county transfer tax equally.
First-time Maryland buyers get a much better deal. If you have never owned a home in Maryland that was your principal residence, and you will live in this one, the state transfer tax drops to 0.25 percent and the seller pays all of it. The seller also pays all of the recordation and county transfer tax, unless the contract expressly says otherwise.
| $500,000 home in Prince George’s County | Repeat buyer | First-time Maryland buyer |
|---|---|---|
| State transfer tax | $1,250 (half of 0.5%) | $0 (seller pays 0.25%) |
| County transfer tax (1.4%) | $3,500 | $0 |
| Recordation tax ($2.75 per $500) | $1,375 | $0 |
| Buyer’s total | $6,125 | $0 |
Md. Code, Real Property 14-104(b) and (c); Tax-Property 13-203(b).
Read the contract closely. A seller can negotiate for the buyer to pay some of these taxes, and in a competitive market some contracts do. The rest of the state’s buyer programs and how they affect your budget are in our guide to how much house you can afford in Maryland.
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Montgomery County recordation tax on higher prices
Montgomery charges extra recordation tax on the part of the price above $500,000, rising in steps. The first $100,000 is exempt for anyone buying a home to live in, first-time buyer or not.
| Price, principal residence | County recordation tax | Plus county transfer tax (1%) | Plus state transfer tax (0.5%) | Total |
|---|---|---|---|---|
| $500,000 | $3,560 | $5,000 | $2,500 | $11,060 |
| $600,000 | $4,910 | $6,000 | $3,000 | $13,910 |
| $700,000 | $6,950 | $7,000 | $3,500 | $17,450 |
| $800,000 | $9,048 | $8,000 | $4,000 | $21,048 |
| $1,000,000 | $13,360 | $10,000 | $5,000 | $28,360 |
Montgomery County Code 52-16B and 52-31, calculated; matches the county council staff examples for the rates effective October 1, 2023.
Split equally, a repeat buyer at $700,000 pays about $8,725 of these taxes; a first-time buyer, by default, pays none. Montgomery lenders and local programs are covered in our Montgomery County mortgage guide.
Other county breaks
| County | Break |
|---|---|
| Baltimore City | First $22,000 exempt from recordation for an owner occupant; first $22,000 exempt from transfer tax if the price is under $250,000 |
| Washington | First $50,000 exempt from county transfer tax; 0.25% rate for some first-time county buyers under $115,000 |
| Howard | Transfer tax exemption for first-time buyers who are county police, deputy sheriffs, fire and rescue staff or public school teachers |
Baltimore City Code Art. 28, 16-2 and 17-2; Washington County Circuit Court clerk; Howard County transfer tax exemption affidavit; Chapters 148 (2017) and 138 (2018), Laws of Maryland.
Title insurance and settlement fees
Title insurers in Maryland must file their rates with the Maryland Insurance Administration, so premiums follow a published schedule. Lenders typically require a lender’s policy; the owner’s policy is optional and protects you, up to the price you paid, if a past title problem surfaces.
| Policy | Example premium |
|---|---|
| Owner’s policy, $500,000, standard | $2,507.50 |
| Owner’s policy, $500,000, enhanced homeowner’s coverage | $3,007.50 |
| Lender’s policy, $450,000, issued with the owner’s policy | $350 |
| Lender’s policy, $450,000, on its own | $1,520 |
Stewart Title Guaranty Company, Maryland schedule of charges effective November 24, 2025, as filed with the Maryland Insurance Administration; premium only. Other underwriters’ filed rates differ.
Settlement and title company service fees are not regulated, so they vary from company to company. When a real estate agent provides the contract for a single-family home, Maryland law requires it to state that you may choose your own title company, settlement company, escrow company, lender and title lawyer. Compare the fees in Sections B and C of your Loan Estimate; our guide to reading your Loan Estimate explains which ones you can shop for.
Md. Code, Insurance 11-403; Business Occupations and Professions 17-524; Maryland Insurance Administration consumer guide to title insurance.
In Maryland, first-time buyers who will live in the home pay no transfer or recordation tax by default.
Recording fees, property taxes and prepaid items
| Item | What to expect |
|---|---|
| Recording fees | $60 per document ($20 fee plus a $40 surcharge); about $120 for the deed and deed of trust |
| Property tax at settlement | Prorated between buyer and seller under the contract |
| Property tax schedule | Owner occupants can pay in two installments, the first without interest through September 30 and the second through December 31 |
| Escrow deposit | A few months of taxes and insurance, set by the lender’s escrow analysis |
| Homeowners insurance | First year paid at or before closing; the Maryland average for a standard HO-3 policy was about $1,392 a year (2022 NAIC data) |
| Homestead tax credit | File a one-time application with the state after you move in; it caps yearly assessment increases |
Maryland Judiciary land records fee chart effective October 1, 2025; Md. Code, Tax-Property 10-204.3; Maryland Department of Assessments and Taxation; NAIC homeowners premium data via the Insurance Information Institute.
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A full example: $500,000 in Prince George’s County
| Cost | Repeat buyer | First-time Maryland buyer |
|---|---|---|
| Transfer and recordation taxes (buyer’s share) | $6,125 | $0 |
| Owner’s and lender’s title insurance (example) | $2,858 | $2,858 |
| Recording fees | $120 | $120 |
| Homeowners insurance, first year (average) | $1,392 | $1,392 |
| Lender, appraisal and settlement fees | Varies; see your Loan Estimate | Varies; see your Loan Estimate |
| Escrow deposit for taxes and insurance | Set by the lender | Set by the lender |
Calculated from the rates above. Lender, appraisal and settlement fees differ by company and loan and are shown on your Loan Estimate.
The first-time buyer rule is worth $6,125 here, more than the title insurance, recording fees and first-year insurance in this example combined ($4,370). Prince George’s and other Maryland county loan limits are in our guide to FHA loan limits in Maryland.
Help paying Maryland closing costs
For eligible buyers, mostly first-time buyers within income and price limits, the Maryland Mortgage Program offers down payment and closing cost help as a 0 percent, deferred second loan, such as $6,000 or 3 or 5 percent of the first mortgage, due when you sell, refinance or pay off the first mortgage. With the $6,000 option, Partner Match can match help from an employer or local program up to $2,500. The Maryland HomeCredit tax credit program is closed. Income limits and how to apply are in our guide to the Maryland Mortgage Program.
Maryland Mortgage Program down payment assistance page and fact sheets, 2026.
Seller credits are the other common source, within the limits of your loan type. How Maryland compares with Virginia and DC on every closing cost is in our closing cost guide for Virginia, DC and Maryland.
Loan options for Maryland buyers, from FHA to VA, are on our Maryland mortgage page.
Frequently asked questions
How much are closing costs in Maryland?
The buyer’s share of transfer and recordation taxes alone is about 0.75 to 1.5 percent of the price for a repeat buyer, plus title, recording, lender and prepaid costs. First-time Maryland buyers usually pay none of the taxes.
What is the Maryland transfer tax?
The state transfer tax is 0.5 percent of the price, or 0.25 percent, paid entirely by the seller, for a first-time Maryland buyer. Most counties add their own transfer tax of 0.5 to 1.5 percent.
What is the Maryland recordation tax?
A county tax charged per $500 of the price when the deed is recorded, from $2.50 in Howard and Baltimore counties to $7.00 in Frederick and Charles.
Who pays transfer and recordation taxes in Maryland?
By default, buyer and seller split them equally. For a first-time Maryland buyer who will live in the home, the seller pays the state transfer tax, and also the recordation and county transfer tax unless the contract expressly says otherwise.
Who counts as a first-time buyer for the Maryland transfer tax?
Someone who has never owned residential property in Maryland that was their principal residence, and who will live in the home they are buying. If there are several buyers, each must qualify, or be a co-signer who will not live in the home.
Is the deed of trust taxed in Maryland?
Not on a purchase, if it is recorded within 30 days of the deed. Recordation tax is charged on the price.
Which Maryland county has the lowest closing costs?
Of the counties in this guide, Calvert, with no county transfer tax and a $5.00 recordation rate, has the lowest total on a $500,000 home. Baltimore City has the highest.
Can I choose my own title company in Maryland?
Yes. When a real estate agent provides the contract for a single-family home, Maryland law requires it to state that you may choose your own title company, settlement company, escrow company, lender and title lawyer.
Does Maryland have closing cost assistance?
Yes. The Maryland Mortgage Program offers eligible buyers options such as $6,000, or 3 or 5 percent of the loan, as a 0 percent deferred loan that can go toward closing costs.
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This article is general information, not financial or legal advice and not a commitment to lend or an offer of credit. Loan limits, program rules, premium schedules and rates change, and individual eligibility depends on a full review of your credit, income, assets and the property. Every figure here is an illustration, not a quote, built from published sources and a weekly survey average rather than underwriting decisions. Insurance and mortgage insurance amounts are planning estimates. Confirm anything you plan to act on with a licensed mortgage professional. County rates are from fiscal year 2026 tables and county codes checked September 28, 2026; confirm any fiscal year 2027 change with the settlement agent. Title premiums are one underwriter’s filed rates. Your actual costs are shown on your Loan Estimate and Closing Disclosure.
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