Anne Arundel County Transfer Tax Calculator

1 Real Property Tax & Business Personal Property

Maryland’s Tax-Property Article authorizes AAC to levy annual real property taxes on SDAT-certified values. FY2026 county rate: $0.977 per $100; state levy: $0.112 per $100; combined: $1.089 per $100.^[1] BPP (furniture, equipment, fixtures) is assessed by SDAT and taxed at $2.442 per $100; annual BPP return due April 15.^[1]

Homestead Credit — 2% Annual Cap

MD TP §9-105 caps annual assessment growth for owner-occupied principal residences at 2%. If the assessment rises from $330,000 to $360,000, the taxable value is capped at $330,000 × 1.02 = $336,600. Activate with a one-time SDAT application. The income-based Homeowners’ Property Tax Credit (MD TP §9-104) requires annual application to SDAT by September 1.^[1]

County Tax = (Taxable Value ÷ 100) × $0.977 State Tax = (Taxable Value ÷ 100) × $0.112 Combined = (Taxable Value ÷ 100) × $1.089 Homestead: Capped Value = MIN(Assessment, Prior Year × 1.02) BPP Tax = (BPP Value ÷ 100) × $2.442 Example A — $350,000 home, prior $330,000: Capped taxable = $330,000 × 1.02 = $336,600 County = $336,600 × 0.00977 = $3,288.58 State = $336,600 × 0.00112 = $376.99 Total/yr = $3,665.57 Example B — $50,000 BPP: $50,000 × 0.02442 = $1,221.00

2 Local Income Tax & State Sales Tax

AAC replaced its old flat 3.20% local income tax with graduated marginal brackets on Maryland taxable income (MD Form 502 line 20):^[2]

• Single/MFS: 2.70% ≤$50K · 2.94% $50K–$400K · 3.20% >$400K
• MFJ/HOH: 2.70% ≤$75K · 2.94% $75K–$480K · 3.20% >$480K

Withheld by employers via MD Comptroller 2026 tables; reconciled on MD Form 502. Maryland’s 6% flat state sales tax applies; no AAC local add-on.^[2]

B1 = MIN(Income, T1) × 2.70% [T1: $50K Single / $75K MFJ] B2 = MAX(0, MIN(Income,T2)−T1) × 2.94% [T2: $400K / $480K] B3 = MAX(0, Income−T2) × 3.20% Local Tax = B1+B2+B3 · Sales Tax = Purchase × 6% Example C — Single, $75,000: $50K×2.70% + $25K×2.94% = $2,085 (eff. 2.78%) Example D — MFJ, $100,000: $75K×2.70% + $25K×2.94% = $2,760 (eff. 2.76%)

3 Transfer Tax & Recordation Tax

Transfer tax: 1.0% on first $1M; above $1M the county charges 1.5% and MD TP §10-308 (eff. 2023) adds 0.5% — combined 2.0% on the excess. Seller pays at settlement.^[3] Recordation tax: $7.00 per $1,000 of the loan, rounded up to the next $500. Borrower pays at deed recording.^[3] Exempt: interspousal/domestic partner transfers, government transfers, qualifying nonprofits (verify), corrective deeds.

Transfer (≤$1M): Sale × 1.0% Transfer (>$1M): $10,000 + (Sale−$1M) × 2.0% [= 1.5% county + 0.5% MD §10-308 on excess] Recordation: Rounded = CEIL(Loan÷500)×500 Tax = (Rounded÷1,000) × $7.00 Example E — $400K sale, $320K loan: Transfer = $400,000 × 1.0% = $4,000 (seller) Recordation = $320,000÷1,000 × $7 = $2,240 (borrower) Combined: $6,240 Example F — $1.2M sale, $960K loan: Transfer: $10,000 + $200,000×2.0% = $14,000 Recordation: $960,000÷1,000 × $7 = $6,720 Combined: $20,720

4 Utility Bills — Water, Sewer, Stormwater & Solid Waste

AAC DPW FY2026 volumetric rates: Water $3.65/Kgal, Wastewater $6.42/Kgal, billed quarterly. Each bill adds: 35% Infrastructure Maintenance Fee (on water+sewer), $15.00 Bay Restoration Fee, and $6.00 account fee. Unmetered sewer: flat $89.88/quarter.^[4]

Stormwater WPRF: $98.40/ERU/year (1 ERU = 2,940 sf impervious), billed on the annual tax bill. Tier multipliers: Tier 1 (RA/RLD) ×2.0; Tier 2 (R1/R2/R5) ×1.0; Tier 3 (R10/R15/R22) ×0.4; Church/charity $1 flat; Government/veterans/vol. fire: exempt. Solid waste curbside: $426/yr flat.^[5]

Water/Sewer Quarterly: Water = (gal÷1,000)×$3.65 | Sewer = (gal÷1,000)×$6.42 Infra = (Water+Sewer)×35% | Bay=$15 | Acct=$6 Total = Water+Sewer+Infra+Bay+Acct Stormwater WPRF (annual): ERUs = Impervious sf ÷ 2,940 Fee = ERUs × $98.40 × Tier Multiplier Example G — 20,000 gal each, Tier 2 (2,500 sf), curbside: Water=$73 · Sewer=$128.40 · Infra=$70.49 · Bay=$15 · Acct=$6 Quarterly = $292.89 | Annual W/S = $1,171.56 WPRF: 0.851 ERU×$98.40×1.0 = $83.74/yr Solid Waste: $426/yr Annual Utility Total: $1,681.30

5 Permits — Building, Electrical, Plumbing & Mechanical

Every permit incurs a flat $43 application fee in addition to the schedule fee.^[6]

Building: ≤$25K → $86 min. >$25K → $242 + 1.0%×(cost−$25K). Electrical (new SF): ≤200A $147; ≤400A $259; >400A +$40/100A. Alteration: ≤200A $95. Commercial: ≤200A $216; +$60/100A. Plumbing (new SF): detached $173; townhouse $129; septic $600. Addition: $51+$8/fixture. Mechanical/HVAC: $51 min.

Building: MAX($86, $242+1.0%×(Cost−$25,000)) + $43 Electrical (new SF ≤200A): $147+$43=$190 Plumbing (detached): $173+$43=$216 Example H — $250K remodel: $242+1%×$225,000=$2,492 + $43 = $2,535 Example I — $500K new SF (3 permits): Building $4,992+$43=$5,035 · Electrical $190 · Plumbing $216 Total permits: $5,441

6 Impact Fees & Capital Connection Charges

Residential impact fees by lot size (per dwelling unit):^[7]

• <6,000 sf lot: Roads $2,137 + Schools $3,230 + Safety $144 = $5,511/unit
• ≥6,000 sf lot: Roads $7,871 + Schools $14,921 + Safety $526 = $23,318/unit

Non-residential (no school fee): Industrial $6,246/1K sf roads; Retail $10,524 roads + $1,404 safety per 1K sf; Office <100K sf $10,101 roads + $552 safety; Hotel $7,241 roads + $185 safety per room; Assembly $1,504 roads + $59 safety per parking space. Capital connection: $279/tap + $11,340/EDU (post-6/1/2019).^[7]

Residential: Impact = Per-unit fee × Units Non-res retail: (sf÷1,000)×($10,524+$1,404) Connection: (Taps×$279) + (EDUs×$11,340) Example J — 1 SF home, ≥6K sf lot, 2 taps, 1 EDU: Impact fees: $23,318 Taps: 2×$279 = $558 | CCFC: 1×$11,340 = $11,340 Total dev. charges: $35,216

7 Business & Other Taxes

Hotel/Use & Occupancy Tax: 7% of room rent × nights (Bill 88-19). Operator collects and remits monthly. Government stays exempt.^[8]

Admissions & Amusements: 10% general; 7.5% cinema. Qualifying nonprofits exempt (MD Tax-Gen. Art. §4-103).^[8]

Parking Lot Tax: $1.00/vehicle/day on commercial lots; county-owned and Annapolis lots exempt.^[8]

TNC/Rideshare Assessment: $0.25/trip originating in unincorporated AAC (City of Annapolis excluded).^[8]

Telephone Tax: 8% of gross local exchange service charges (AAC Code §4-6-104); cell, long-distance, and message service exempt.^[8]

Utility excise taxes: LPG $0.015/gal; fuel oil $0.02/gal; bituminous coal $2.00/ton; anthracite $4.00/ton; natural gas $0.008/therm (industrial) / $0.020/therm; electricity $0.0020/kWh (industrial) / $0.0025/kWh; steam $160/million lbs.^[8]

Rate Reference Tables

References

1. Anne Arundel County FY2026 Real Property Tax — $0.977/$100 County · $0.112/$100 State · BPP $2.442/$100 · Homestead Cap 2% (MD TP §9-105) · Homeowners’ Credit (MD TP §9-104).
   AAC’s FY2026 real property tax rate ($0.977/$100) is established in the county’s annual budget ordinance effective July 1, 2025. The Maryland State levy ($0.112/$100) is set by the State of Maryland and collected alongside the county levy for a combined rate of $1.089/$100 (1.089%). SDAT certifies assessed values through a triennial reassessment cycle. The Homestead Property Tax Credit (MD TP §9-105) caps annual assessment growth at 2% for owner-occupied primary residences upon filing a one-time application with SDAT. The income-based Homeowners’ Property Tax Credit (MD TP §9-104) provides additional relief for lower-income owners and requires an annual application to SDAT by September 1. Business Personal Property is taxed at $2.442/$100 on SDAT-assessed tangible personal property; businesses file annually by April 15. The City of Annapolis applies its own real property rate and a 10% homestead cap, not covered here.
   AAC Finance Dept: aacounty.org/departments/finance · SDAT: dat.maryland.gov · MD TP §§9-104, 9-105
2. Anne Arundel County 2026 Graduated Local Income Tax — 2.70%/2.94%/3.20% Marginal Brackets · MD Comptroller 2026 Withholding Memo · Maryland Taxable Income (MD Form 502 Line 20) · State Sales Tax 6% Flat · No AAC Local Add-On.
   The MD Comptroller’s 2026 withholding memo establishes AAC’s graduated local income tax with three marginal brackets: Single/MFS at $50,000 and $400,000; MFJ/HOH at $75,000 and $480,000. Rates of 2.70%, 2.94%, and 3.20% apply only to the income within each bracket — not to the full income. Maryland taxable income (MD Form 502 line 20) is the base after all state deductions, exemptions, and adjustments to federal AGI. Employers must use the 2026 withholding tables for payroll withholding; employees reconcile on the annual MD Form 502. Maryland’s statewide 6% sales and use tax (MD Tax-General Art.) applies to AAC purchases with no county add-on. Major exemptions include most unprepared grocery food, prescription drugs, and qualifying agricultural inputs.
   MD Comptroller: marylandtaxes.gov · MD Tax-General Art. §§11-101 et seq.
3. Anne Arundel County Transfer Tax 1.0% (≤$1M) and 2.0% on Excess (>$1M) · MD TP §10-308 State Surtax 0.5% Effective 2023 · Recordation $7/$1,000 Rounded to Next $500 · Seller Pays Transfer · Borrower Pays Recordation · Exemptions: Interspousal MD TP §12-108, Government, Nonprofit, Corrective Deed.
   AAC’s transfer tax is 1.0% on consideration up to $1,000,000 and 1.5% (county) on the excess above $1M. Maryland TP §10-308, effective 2023, adds a 0.5% state surtax on the same excess, bringing the combined rate to 2.0% on every dollar above $1M. The seller pays transfer tax at settlement; the rate structure ensures that a $1.2M sale incurs $14,000 in combined transfer tax ($10,000 on first $1M + $3,000 county + $1,000 state surtax on $200K excess). The recordation tax of $7/$1,000 is imposed on the mortgage/deed of trust principal, rounded up to the next $500 increment before computing ($7/1,000 × rounded principal). The borrower pays recordation at deed recording. A separate Maryland state recordation tax also applies at deed recording; verify the current Maryland state rate with the Land Records clerk. Exempt transfers must cite the applicable MD TP section on the deed: interspousal/domestic partner (MD TP §12-108), government (MD TP Art.), qualifying nonprofits (confirm before closing), corrective deeds.
   AAC Finance: aacounty.org/departments/finance · MD TP Art. §10-308
4. Anne Arundel County Water/Sewer FY2026 Rates — Water $3.65/Kgal · Wastewater $6.42/Kgal · 35% Infrastructure Maintenance Fee · Bay Restoration Fee $15/bill · Account Fee $6/quarter · Unmetered Sewer $89.88/quarter · Quarterly Billing · DPW Utilities.
   AAC’s Department of Public Works (DPW) Utilities operates the county water and wastewater system. Effective July 1, 2025, the volumetric rate for metered water is $3.65 per 1,000 gallons and for metered wastewater is $6.42 per 1,000 gallons, billed quarterly based on meter readings. In addition to volumetric charges, each quarterly bill includes an Infrastructure Maintenance Fee (IMF) equal to 35% of the combined water and sewer charges, which funds system infrastructure upkeep. The state-mandated Bay Restoration Fee ($15.00 per bill for residential accounts) is collected on behalf of the Maryland Department of the Environment’s Bay Restoration Fund, which finances wastewater treatment upgrades to improve Chesapeake Bay water quality. An account fee of $6.00 per quarter is also assessed. Unmetered sewer accounts (properties with sewer but no water meter) pay a flat rate of $89.88 per quarter in lieu of the volumetric sewer rate, plus the 35% IMF on that flat amount, the Bay Restoration Fee, and the account fee. Late payments incur a 10% late fee; service reconnection after disconnection costs $50.
   AAC DPW Utilities: aacounty.org/departments/public-works
5. Stormwater Watershed Protection & Restoration Fee (WPRF) — $98.40/ERU/Year · 1 ERU = 2,940 sf Impervious · Tier Multipliers 2.0×/1.0×/0.4× · Church/Charity $1 Flat · Gov’t/Veterans Org/Vol. Fire Exempt · Annual on Property Tax Bill · Bureau of Watershed Protection and Restoration (BWPR). Solid Waste Curbside Fee $426/yr Flat · Weekly Trash/Recycling/Yard Waste · Annual on Tax Bill · Millersville Landfill $100/ton Commercial.
   AAC’s WPRF is a stormwater utility fee imposed on all parcels with measurable impervious surface, designed to fund watershed protection and stormwater management programs under the Bureau of Watershed Protection and Restoration (BWPR). The fee is based on Equivalent Residential Units (ERUs), where 1 ERU equals 2,940 square feet of impervious area, at a base rate of $98.40 per ERU per year for FY2026. A zone-based tier multiplier modifies the per-ERU charge: Tier 1 zones (large-lot residential — RA, RLD) apply a ×2.0 multiplier; Tier 2 (standard residential — R1, R2, R5) use ×1.0; Tier 3 (high-density/attached — R10, R15, R22) use ×0.4. Non-residential properties also use ×1.0. Churches and charitable organizations pay a $1.00 flat annual fee. Government-owned properties, qualifying veterans’ organizations, and volunteer fire companies are exempt. Properties with no impervious area default to 1 ERU for billing purposes. An annual credit program exists for properties implementing approved stormwater management measures. The flat annual solid waste fee ($426/yr) covers weekly curbside trash, recycling, and yard waste collection for all curbside-served households, appearing as a line item on the annual county property tax bill. Commercial waste disposal at the Millersville Landfill is $100/ton (general), $200/ton (bulky items — trailers, boats over 20 ft), and $229.25/ton (tires); up to four auto tires per vehicle are accepted free.
   AAC BWPR: aacounty.org/departments/watershed-protection · AAC Waste Management
6. Anne Arundel County Permit Fees — Building $86 Min / $242+1.0%×(Cost−$25K) · $43 Application Fee All Permits · Electrical $147–$259 by Amperage · Plumbing $173/$129/$600 · Mechanical $51 Min · AAC Office of Inspections and Permits (aacounty.org/inspections).
   AAC uses a value-based building permit fee schedule under which projects at or below $25,000 in estimated construction cost pay a minimum fee of $86. For projects above $25,000, the fee is calculated as $242 plus 1.0% of the construction value exceeding $25,000, subject to the $86 minimum. A flat $43 application fee is added to every permit, regardless of type or value. Electrical permits follow a service-size schedule: new single-family residential at or below 200 amps is $147; 201–400 amps is $259; above 400 amps adds $40 per additional 100-amp increment. Alteration/addition electrical work is $95 for up to 200 amps. Commercial new construction electrical starts at $216 for up to 200 amps and adds $60 per additional 100-amp increment above 200 amps. Plumbing permit fees are $173 for a new single-family detached home, $129 for a townhouse, and $600 for a complete septic system installation. Addition/alteration plumbing is priced at $51 for the first fixture plus $8 per additional fixture, with a $51 minimum. Mechanical/HVAC permits carry a minimum base of $51. All permit fees are paid at permit issuance; re-inspection and plan review fees may apply additionally for commercial projects.
   AAC Inspections & Permits: aacounty.org/departments/inspections-and-permits
7. Anne Arundel County FY2026 Impact Fees — Residential: Roads $2,137–$7,871 · Schools $3,230–$14,921 · Safety $144–$526 (by Lot Size) · Non-Residential: Industrial $6,246/1K sf · Retail $11,928/1K sf · Office $10,653/1K sf · Hotel $7,426/room · Capital Connection: Tap $279 · CCFC $11,340/EDU (Post-6/1/2019).
   AAC’s impact fee ordinance (effective FY2026, July 1, 2025) imposes one-time development impact fees at permit issuance to fund new roads, schools, and public safety infrastructure. Residential fees are tiered by lot size: properties with lots under 6,000 square feet pay $2,137 (roads) + $3,230 (schools) + $144 (public safety) = $5,511 per dwelling unit; lots at or above 6,000 square feet pay $7,871 + $14,921 + $526 = $23,318 per dwelling unit. School impact fees apply only to residential development; non-residential development pays roads and public safety fees only. Non-residential per-1,000-sf fees: industrial/warehouse $6,246 (roads only); retail/mercantile $10,524 (roads) + $1,404 (safety); office under 100,000 sf $10,101 (roads) + $552 (safety). Hotels are charged $7,241 (roads) + $185 (safety) per room; assembly uses $1,504 (roads) + $59 (safety) per parking space. Utility connection charges are separate: a tap fee of $279 per tap (water and sewer are separate taps) and a Capital Facility Connection Charge (CCFC) of $11,340 per Equivalent Dwelling Unit (EDU) for permits submitted on or after June 1, 2019 ($8,149/EDU for earlier applications). All impact fees and connection charges are paid to AAC at permit issuance by the applicant/developer.
   AAC Impact Fees: aacounty.org/departments/inspections-and-permits · AAC DPW
8. Anne Arundel County Other Business Taxes — Hotel/Occupancy 7% (Bill 88-19) · Admissions 10%/7.5% Cinema · Parking Lot $1/vehicle/day · TNC $0.25/trip · Telephone 8% Local Exchange (§4-6-104) · Utility Excise Taxes: LPG $0.015/gal · Oil $0.02/gal · Coal $2–$4/ton · Gas $0.008–$0.020/therm · Electricity $0.0020–$0.0025/kWh.
   AAC Code Bill 88-19 (adopted 2020) imposes a 7% use and occupancy tax on transient lodging rents (hotels, motels, B&Bs, short-term rentals) collected by the operator from guests and remitted monthly to AAC; government stays paid by direct government warrant are generally exempt. The admissions and amusements tax of 10% (7.5% for movie theaters) is levied on ticket sales for entertainment venues; qualifying nonprofit organizations are exempt per Maryland Tax-General Article §4-103. The commercial parking lot tax of $1.00 per vehicle per 24-hour period applies only to private commercial lots; county-owned garages and City of Annapolis lots are exempt. The TNC assessment of $0.25 per trip applies to rideshare trips (Uber, Lyft, etc.) originating in unincorporated AAC; trips originating within the City of Annapolis are excluded. The telephone tax of 8% under AAC Code §4-6-104 applies to gross local exchange service charges; mobile/cellular, long-distance, and message service charges are exempt. AAC Code also imposes utility excise taxes collected from utility companies: LPG $0.015/gal; fuel oil $0.02/gal; bituminous coal $2.00/ton; anthracite $4.00/ton; natural gas $0.008/therm (industrial schedule) or $0.020/therm (otherwise); electricity $0.0020/kWh (industrial) or $0.0025/kWh; steam $160 per million lbs. Residential propane used for home heating and motor vehicle fuel subject to the Maryland state motor fuel excise tax are generally excluded from the county fuel tax.
   AAC Code §4-6-104 · Bill 88-19 · MD Tax-General Art. §4-103 · AAC Finance Dept: aacounty.org/departments/finance
9. Maryland Department of Assessments and Taxation (SDAT) — Property Assessment Data · BPP Returns · Homestead Credit Applications · SDAT Consolidated Property File · dat.maryland.gov.
   SDAT is the state agency responsible for certifying real property assessments (used as the tax base for both county and state property taxes), administering business personal property assessments and returns, processing Homestead Property Tax Credit applications, and maintaining the official property assessment and ownership records for Maryland. Anne Arundel County property owners should use SDAT’s online Real Property Search to verify their current assessed value, taxable assessment (after any homestead cap), and whether the homestead credit has been activated on their property. SDAT’s online BPP filing system allows businesses to file annual personal property tax returns electronically by April 15. The Homestead Credit one-time application is filed through SDAT’s portal and applies immediately upon SDAT approval. Assessment appeals may be filed with SDAT’s Property Tax Assessment Appeal Board (PTAAB) within 45 days of the assessment notice.
   SDAT: dat.maryland.gov · AAC Assessment Office: aacounty.org/departments/assessments
10. Maryland State Sources — MD Tax-Property Art. §§9-104, 9-105, 10-308 · MD Tax-General Art. (Sales Tax, Admissions) · MD Comptroller (Income Tax, Withholding) · MDE Bay Restoration Fund · Maryland Land Records (Recordation/Transfer) · marylandtaxes.gov · courts.state.md.us/landrecords.
    Several Maryland state statutes directly govern Anne Arundel County taxes covered in this guide. The Maryland Tax-Property Article (MD TP §§9-104, 9-105) establishes the Homeowners’ Property Tax Credit and Homestead Credit programs administered by SDAT. MD TP §10-308 (effective 2023) imposes the 0.5% state surtax on county transfer taxes applicable to the consideration exceeding $1,000,000 — this surtax is collected by the county at settlement and remitted to the state. The MD Comptroller administers the state’s personal income tax system, issues annual withholding tables used by employers for local income tax withholding, and processes MD Form 502 returns. The Maryland Department of the Environment (MDE) administers the Bay Restoration Fund, which is funded in part by the $15.00 quarterly Bay Restoration Fee collected through county water/sewer bills. Maryland Land Records (administered through the circuit courts) is where deeds are recorded and transfer and recordation taxes are collected; the Anne Arundel County Land Records office is at the Circuit Court for Anne Arundel County in Annapolis. The Maryland Tax-General Article governs the 6% state sales and use tax and the admissions and amusements tax authorization.
    MD Comptroller: marylandtaxes.gov · MD Land Records: mdlandrec.net · AAC main site: aacounty.org

Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice. All rates are for unincorporated Anne Arundel County; the City of Annapolis and Highland Beach have separate rates. FY2026 rates are effective July 1, 2025 and may be amended by ordinance or state law change. Verify all current rates at aacounty.org and marylandtaxes.gov before closing, filing, or applying for permits. Consult a licensed Maryland CPA, real estate attorney, or title company for complex transactions.