What Do Maryland Home Sellers Pay in Transfer and Recordation Taxes?
Maryland charges a state transfer tax of 0.5% of the sale price, plus county recordation and local transfer taxes that vary by where the home sits. County recordation taxes run from about 0.5% to 1.4%, and local transfer taxes from 0% to 1.5%. Who pays each piece is often negotiated in the sales contract, so it pays to check before you list.
If you want to sell your house fast in Maryland, closing costs can feel like a surprise bill at the worst time. This guide breaks down the taxes in plain language, shows a simple example, and explains how a cash sale can change your math.
This is general information, not legal or tax advice. Your contract, county, and situation decide what you owe. Ask your title company or a Maryland real estate attorney for exact numbers.
How Much Is the Maryland State Transfer Tax?
The state transfer tax is 0.5% of the sale price, set by Maryland’s Tax-Property Article, Section 13-203.
There’s one special case. If the buyer is a qualifying first-time Maryland homebuyer who will live in the home, the state rate drops to 0.25%. In that case, the law says the seller pays the whole amount. So a first-time-buyer sale can actually put the tax on you.
Simple example (illustration only): On a $400,000 home, 0.5% is $2,000. If the buyer is a qualifying first-timer, 0.25% is $1,000, paid by the seller.
What Are County Recordation and Local Transfer Taxes?
On top of the state tax, counties and Baltimore City add their own charges. According to the law firm Gordon Feinblatt:
- Recordation taxes range from about 0.5% to 1.4% across counties
- Local transfer taxes range from 0% to 1.5%
- Some counties use tiered rates that change with the sale price
Examples from that same source include a 1.25% local transfer tax in Howard County, 1.0% to 1.5% in Anne Arundel County, and tiered recordation rates in Montgomery County. Rates change, so confirm your county’s current numbers before you rely on them.
Who Pays the Taxes: Buyer or Seller?
In many Maryland sales, the contract decides how these taxes are split. Some are shared, some fall on one side, and the first-time-buyer rule above puts that piece on the seller.
Here is what to do before you sign:
- Read your contract’s closing cost section. Look for who pays transfer and recordation taxes.
- Ask your title company for a seller net sheet. It lists the actual taxes for your county and sale price.
- Check if the buyer is a first-time homebuyer. That can shift the state tax to you.
What Else Eats Into Your Sale Proceeds?
Transfer and recordation taxes are only part of the picture. Sellers who list the traditional way may also face:
- Agent commissions. These are negotiable, so ask for the terms in writing.
- Repair credits. Buyers often ask for these after an inspection.
- Carrying costs. Mortgage, property taxes, insurance, and utilities keep running while the home sits. The median Maryland home spent 43 days on market in August 2026, per Redfin, before closing even starts.
- Prorated property taxes and loan payoff. These come out of your proceeds at closing.
Stacked together, a “normal” sale can take a bigger bite than many sellers expect.
Can a Cash Sale Help You Sell Your House Fast in Maryland and Cut Costs?
| Traditional Listing | Cash Sale to Executive Pro Home Buyers | |
|---|---|---|
| Agent commission | Yes, negotiated | None |
| Closing costs to you | Taxes and fees, split per contract | None |
| Repairs before sale | Often needed | None, sold as-is |
| Showings | Many | None |
| Timeline | 43+ days on market, then closing | Close in as little as 7 days |
| Sale price | Potentially higher | Fair cash offer, often lower than full retail |
Here’s the honest trade-off. A cash offer is usually below what a fully repaired home might fetch at retail. In return, you get speed, certainty, and no commissions, closing costs, or repair bills. For some sellers, the net difference is smaller than it looks. For others, listing wins. We’ll tell you if we think listing would serve you better.
Does Selling As-Is Change the Tax Rules?
No. Transfer and recordation taxes depend on the sale price and county, not on the home’s condition. What an as-is sale changes is your repair costs and timeline. Read our full guide on how to sell a house as-is in Maryland for the disclosure rules.
Selling for a profit? You may also face federal capital gains rules. See our guide to capital gains tax when selling a Maryland house.
Where We Buy Houses in Maryland
We buy homes in any condition across Maryland, including Howard, Anne Arundel, Montgomery, Prince George’s, and Baltimore areas. Our office is in Columbia. See our Maryland service area to check your county. Our sister site, executiveprohomebuyers.com, shares the same company and offer.
Want to See Your Real Numbers? Get a Cash Offer
Compare a cash offer with your listing estimate side by side. It’s free, with no obligation, and you pick your closing date. Get My Cash Offer or call 443-830-3677.
Our goal is simple: help you sell your house fast in Maryland and keep more of what you planned to keep. Know someone who needs to sell? Our Refer and Win program pays $500 per successful referral. Learn more or start a referral.
Frequently Asked Questions
How much is the transfer tax in Maryland?
The state transfer tax is 0.5% of the sale price, or 0.25% for qualifying first-time Maryland homebuyers, in which case the seller pays it. Counties may add recordation and local transfer taxes on top.
Who pays the transfer tax in Maryland, buyer or seller?
It depends on the contract and the situation. Parties can often negotiate the split, but the first-time-buyer state rate must be paid by the seller. Check your contract and ask your title company.
What is the Maryland recordation tax?
It’s a county-level tax charged when a deed is recorded. Rates range from about 0.5% to 1.4% depending on the county.
Do I pay these taxes if I sell to a cash home buyer?
With Executive Pro Home Buyers, you pay no closing costs, commissions, or fees on the sale. We’ll confirm all terms in writing in your offer.
Can I find my exact closing costs before I list?
Yes. Ask a title company for a seller net sheet. It estimates the taxes, fees, and payoff based on your county and price.