Maryland’s state transfer tax is authorized by Tax–Property Article §13-203 of the Annotated Code of Maryland.[1] Each county and Baltimore City imposes its own local transfer tax under separate ordinances granted by state enabling legislation. The seller is presumed to pay both taxes under Real Property Article §14-104, though purchase contracts frequently allocate all or part of the county tax to the buyer.[2]
1 Classify the Instrument Being Recorded
Transfer tax applies to instruments that convey ownership of real property — primarily deeds of sale. Not every instrument recorded with the county clerk triggers the tax, and knowing the type up front prevents over- or under-calculating.
- Deed of Sale / Purchase — fully taxable. Both state and county transfer tax apply.
- Gift Deed (no monetary consideration) — exempt. No transfer tax is owed because there is no consideration. A nominal recording fee may still apply.
- Family Transfer — exempt. Conveyances between spouses, domestic partners, or lineal relatives (parents, grandparents, children, grandchildren) without monetary consideration are exempt under Tax–Property Art. §12-108(c).[3]
- Mortgage or Deed of Trust — generally not subject to transfer tax. Only recordation tax applies to security instruments in all Maryland counties — except Prince George’s County, which uniquely extends its 1.40% local transfer tax to mortgages and deeds of trust as well.[4]
- Lease longer than 7 years — treated as a deed for tax purposes under Tax–Property Art. §13-205(b), so both transfer and recordation taxes apply.[1]
- Foreclosure Deed or Deed-in-Lieu — fully taxable. The tax base is the amount of debt satisfied, not a separate cash payment.
- Government / Qualifying Nonprofit — exempt per §13-207 and §12-108. Transfers to or from the U.S. government, the State of Maryland, political subdivisions, and certified agricultural land trusts are exempt from both state and county transfer tax.[3]
Example A — Standard Deed of Sale in Howard County
A buyer purchases a single-family home in Ellicott City, Howard County for $400,000 cash with no assumed mortgage. Instrument type: Deed of Sale. Transfer tax applies — state and county.
Example B — First-Time Buyer Deed in Anne Arundel County
A first-time Maryland homebuyer purchases a townhome in Annapolis, Anne Arundel County for $350,000 cash. She has never owned a principal residence in Maryland and will live in the property. Instrument type: Deed of Sale. Transfer tax applies — state at reduced 0.25% rate, county at standard rate.
2 Build the Taxable Consideration
Maryland transfer tax is charged on the full consideration paid by the buyer — and that means more than just the cash purchase price. Under Tax–Property Art. §13-203, any mortgage or lien that the buyer assumes from the seller is added to the sale price to form the total taxable base.[1] The logic is straightforward: if you take over a $50,000 mortgage in addition to paying $300,000 in cash, you have received $350,000 of value, and the tax applies to all of it.
What is not included in the taxable base: seller-paid closing costs, commissions, and any debt that has been forgiven or discharged before the transfer. Gift deeds list $0 consideration, so no tax is owed. On foreclosure deeds, the tax base equals the amount of secured debt that is satisfied by the transfer.
Taxable Consideration = Sale Price + Assumed Debt
Example A — $400,000 Sale, No Assumed Debt
Sale price: $400,000. No existing mortgage assumed.
Taxable Consideration: $400,000 + $0 = $400,000
Example B — $350,000 Sale, No Assumed Debt
Sale price: $350,000. No existing mortgage assumed.
Taxable Consideration: $350,000 + $0 = $350,000
Had the buyer assumed a $40,000 seller’s mortgage instead, the taxable base would be $390,000 — and both state and county taxes would apply to $390,000.
3 Calculate the Maryland State Transfer Tax
The state rate is 0.5% of the total taxable consideration for standard transactions.[1] For qualifying first-time Maryland homebuyers, the rate is reduced to 0.25% — and, uniquely, the law mandates that the seller must pay this reduced state portion rather than the buyer.[1] There is no discretion here: §13-203(b) makes the seller’s obligation mandatory whenever the reduced rate applies.
To qualify for the 0.25% rate, every person taking title must meet the requirement — each grantee must have never owned a principal residence anywhere in Maryland and must intend to occupy the property as their principal residence. If even one co-buyer does not qualify, the full 0.5% rate applies. A signed affidavit or oath attesting to these facts must be filed with the deed at recording under §13-203(b)(4).[1]
State Transfer Tax = Taxable Consideration × State Rate (Standard: 0.50% | First-time MD Homebuyer: 0.25%)
Example A — Standard Sale, Howard County, $400,000
Standard rate of 0.5% applies. Seller pays this by default per Real Property Art. §14-104.
$400,000 × 0.50% = $2,000 State Transfer Tax
Example B — First-Time Buyer, Anne Arundel County, $350,000
Buyer qualifies as first-time Maryland homebuyer. Reduced rate of 0.25% applies, and the seller is legally required to pay this portion.
$350,000 × 0.25% = $875 State Transfer Tax SELLER PAYS (mandated)
Without the first-time buyer qualification, state tax would be $350,000 × 0.50% = $1,750.
4 Look Up the County Transfer Tax Rate
On top of the state tax, the county or city where the property is located imposes its own transfer tax. These rates are set by local ordinance and range from 0% to 1.5% depending on the jurisdiction. Five counties — Calvert, Carroll, Frederick, Somerset, and Wicomico — impose no county transfer tax at all. Two jurisdictions use special tiered or bracketed rates: Anne Arundel County and Montgomery County. All other jurisdictions use a flat rate applied to the full taxable consideration.
| Jurisdiction | County Rate (2026) | Special Notes |
|---|---|---|
| Allegany County | 0.50% | Owner-occupied: first $50k exempt |
| Anne Arundel County | 1.00% (<$1M) / 1.50% (≥$1M) | Flat on full amount; effective 7/1/2023 |
| Baltimore City | 1.50% | Owner-occupied: first $22k exempt. Yield tax surcharge above $1M. |
| Baltimore County | 1.50% | Flat rate, no owner-occupied exemption |
| Calvert County | 0.00% | No county transfer tax |
| Caroline County | 0.50% | Owner-occupied: first $25k exempt; first-time buyer: first $75k exempt |
| Carroll County | 0.00% | No county transfer tax |
| Cecil County | 0.50% | Flat rate, no owner-occupied exemption |
| Charles County | 0.50% | Flat rate, no owner-occupied exemption |
| Dorchester County | 0.75% | Owner-occupied: first $30k exempt |
| Frederick County | 0.00% | No county transfer tax |
| Garrett County | 1.00% | Flat rate |
| Harford County | 1.00% | Flat rate |
| Howard County | 1.25% | Raised from 1.00% effective 7/1/2020 |
| Kent County | 0.50% | Flat rate |
| Montgomery County | 0.25% / 0.50% / 1.00% (tiered) | <$40k: 0.25%; $40k–$70k: 0.50%; ≥$70k: 1.00% — flat on full amount per bracket |
| Prince George’s County | 1.40% | Applies to mortgages/deeds of trust too |
| Queen Anne’s County | 0.50% | Owner-occupied: first $30k exempt |
| St. Mary’s County | 1.00% | $300 credit for first-time owner-occupant |
| Somerset County | 0.00% | No county transfer tax |
| Talbot County | 1.00% | Owner-occupied: first $50k exempt |
| Washington County | 0.50% | Owner-occupied: first $50k exempt; first-time buyer <$115k: 0.25% county rate |
| Wicomico County | 0.00% | Abolished 1996; no county transfer tax |
| Worcester County | 0.50% | Owner-occupied: first $50k exempt |
Anne Arundel County’s tiered rate is a flat rate applied to the entire sale price — not a marginal bracket. A $1,000,000 sale pays 1.50% on all $1,000,000, not 1.00% on the first $999,999 and 1.50% only on the remainder. This rate structure took effect July 1, 2023 under Bill 34-22.[5] Similarly, Montgomery County’s tiered rate is determined by which bracket the full consideration falls into, and that rate applies to the entire amount.[6]
Example A — Howard County, $400,000 Taxable Consideration
Howard County rate: 1.25% flat (Ordinance 34-19, effective 7/1/2020).
$400,000 × 1.25% = $5,000 County Transfer Tax
Example B — Anne Arundel County, $350,000 Taxable Consideration
$350,000 is below the $1M threshold — Anne Arundel flat rate: 1.00%.
$350,000 × 1.00% = $3,500 County Transfer Tax
If this same property sold for $1,100,000, the rate would jump to 1.50% applied to the full $1,100,000 = $16,500 county tax.
5 Apply Any Local Owner-Occupied or First-Time Buyer Exemptions
Many Maryland counties offer a partial exemption from the county transfer tax when the buyer intends to occupy the property as their principal residence. These exemptions remove a fixed dollar amount from the taxable base before applying the county rate. The exemption only applies to the county portion — the state 0.5% (or 0.25% for first-time buyers) is always calculated on the full taxable consideration.
To claim an owner-occupied exemption, the buyer must sign and file a sworn affidavit stating they will occupy the property as their principal residence for at least seven months of the year. The affidavit must accompany the deed at the time of recording — you cannot claim it retroactively.[3] Jurisdictions with owner-occupied county exemptions include Allegany ($50,000), Baltimore City ($22,000), Caroline ($25,000 standard / $75,000 first-time), Dorchester ($30,000), Queen Anne’s ($30,000), Talbot ($50,000), Washington ($50,000), and Worcester ($50,000).
County Taxable Base = Taxable Consideration − Owner-Occupied Exemption Amount County Transfer Tax = County Taxable Base × County Rate
Example A — Talbot County, $320,000 Sale, Owner-Occupied
Sale price: $320,000. Buyer will occupy as principal residence. Talbot County rate: 1.00%, owner-occupied exemption: first $50,000 exempt.
County taxable base: $320,000 − $50,000 = $270,000
$270,000 × 1.00% = $2,700 County Transfer Tax
Without the owner-occupied exemption: $320,000 × 1.00% = $3,200. The exemption saves $500.
Example B — Baltimore City, $800,000 Sale, Owner-Occupied
Sale price: $800,000. Buyer will occupy. Baltimore City rate: 1.50%, owner-occupied exemption: first $22,000 exempt.
County taxable base: $800,000 − $22,000 = $778,000
$778,000 × 1.50% = $11,670 City Transfer Tax (base)
Price is below $1M, so no Baltimore City yield tax surcharge applies. Total city transfer tax: $11,670.
The yield tax (an additional 40% of 1.5% on the amount above $1M) only applies to Baltimore City sales above $1,000,000.
6 Add It All Up — Total Transfer Tax
The total Maryland transfer tax is simply the state portion plus the county portion. Both are due in full at the moment the deed is presented for recording. The county clerk or finance office will not accept the deed until payment is made — there is no grace period or delayed filing option.[2]
Total Transfer Tax = State Transfer Tax + County Transfer Tax
Example A — Standard Sale, Howard County, $400,000 (Full Calculation)
Sale price: $400,000 | No assumed debt | Howard County | Standard rate, no owner-occupied exemption
State Transfer Tax (0.50%): $400,000 × 0.50% = $2,000 SELLER PAYS
Howard County Transfer Tax (1.25%): $400,000 × 1.25% = $5,000
Total Transfer Tax = $7,000 | Effective rate: 1.75% of consideration
Example B — First-Time Buyer, Anne Arundel County, $350,000 (Full Calculation)
Sale price: $350,000 | No assumed debt | Anne Arundel County (<$1M tier) | First-time MD homebuyer, owner-occupant
State Transfer Tax (0.25% — first-time): $350,000 × 0.25% = $875 SELLER PAYS (mandated)
Anne Arundel County (1.00% — no owner-occupied exemption in Anne Arundel): $350,000 × 1.00% = $3,500
Total Transfer Tax = $4,375 | Effective rate: 1.25% of consideration
Without the first-time buyer discount, state tax would be $1,750 and total would be $5,250.
Special Cases Worth Knowing
Baltimore City Yield Tax CITY ONLY
Baltimore City imposes an additional surcharge — called the yield tax — on high-value sales. For any consideration above $1,000,000, the city charges an extra 40% of the 1.5% rate on the portion that exceeds $1 million. In practical terms, for a $1,500,000 Baltimore City sale, the yield tax is: 40% × 1.5% × $500,000 = $3,000, added on top of the standard city transfer tax. This is authorized by Baltimore City Code Art. 28, §17-2.[7]
Prince George’s County Mortgage Tax PG COUNTY ONLY
In every Maryland jurisdiction except Prince George’s County, mortgages and deeds of trust are subject only to recordation tax — not transfer tax. Prince George’s County is the single exception: under County Code §10-191, the 1.40% local transfer tax applies to mortgages and deeds of trust as well as to deeds.[4] A buyer financing a $400,000 purchase in Prince George’s County owes 1.40% transfer tax on the mortgage amount in addition to the deed transfer taxes.
Montgomery County’s Tiered Rate MONT. CO. ONLY
Montgomery County uses a three-bracket system: a consideration under $40,000 is taxed at 0.25%; a consideration from $40,000 to just under $70,000 is taxed at 0.50%; and a consideration of $70,000 or more is taxed at 1.00% — applied to the full consideration, not just the portion above the bracket threshold.[6] For virtually all home sales in Montgomery County today, the full 1.00% rate applies.
Common Exemptions and When Affidavits Are Required
Maryland’s transfer tax exemptions are primarily found in Tax–Property Art. §13-207 and §12-108.[3] An exemption claim is not self-executing — you must either note the statutory basis on the face of the deed or attach a signed affidavit. Without proper documentation, the recording clerk will assess the full tax.
- Government and qualifying nonprofits — fully exempt from both state and county transfer tax (§13-207, §12-108). No affidavit needed for clearly governmental grantors/grantees, but documentation of nonprofit status is required for agricultural land trusts.
- Gift deeds and family transfers — exempt where there is genuinely no monetary consideration. The deed should recite this fact and cite the applicable statutory exemption (§12-108(c) for family transfers).
- First-time homebuyer (state rate reduction) — requires a sworn affidavit by each grantee attesting to first-time buyer status and intent to occupy, filed at recording per §13-203(b)(4).
- Owner-occupied county exemptions — require a signed affidavit of intent to occupy as a principal residence for at least 7 months per year, filed at recording alongside the deed.
- Releases of mortgage liens — exempt from both transfer and recordation tax.
Important: Transfer tax exemptions do not apply to the separate recordation tax. Maryland recordation tax — a per-$500 charge on the consideration or loan amount, typically $3.50 to $7.00 per $500 — is a completely separate obligation. Both taxes are assessed at the same time at recording, but they are calculated differently and governed by different statutes. This calculator covers transfer tax only; confirm recordation tax rates with your county clerk’s office.
Filing and Payment — Due at Recording
Unlike many other states, Maryland imposes no separate transfer tax return and no post-closing filing deadline. Transfer tax is paid directly to the Clerk of the Circuit Court or county finance office at the moment the deed is presented for recording. The clerk will not stamp or record the deed until both the transfer tax and the recordation tax have been paid in full, typically by certified check or wire.[2]
The default rule under Real Property Art. §14-104 is that the seller pays the transfer tax unless the purchase contract specifies otherwise.[2] In practice, many contracts in Maryland split the county tax between buyer and seller, or shift the entire county tax to the buyer as part of the negotiated deal. The state portion (whether 0.5% or the 0.25% first-time buyer rate) is normally the seller’s obligation — and for first-time buyers it is legally the seller’s obligation.
Official forms used at closing include the Declaration of Recordation/Transfer Tax (DRC-UD) and, for claims of exemption, any required affidavits. Maryland’s Judiciary website at courts.state.md.us and the Department of Assessments and Taxation at dat.maryland.gov both provide current forms and contact information for each county’s clerk’s office.[8]
References
- Md. Code, Tax–Property Article §13-203 — Maryland State Transfer Tax.
Establishes the 0.5% state transfer tax rate, defines consideration (including assumed debt), sets the first-time homebuyer reduced rate of 0.25% with mandatory seller payment, requires each grantee to qualify, and specifies the affidavit/oath requirement for the reduced rate (§13-203(b)(4)). Also covers leases longer than 7 years (§13-205(b)).
MD General Assembly: mgaleg.maryland.gov — Tax-Property §13-203 - Md. Code, Real Property Article §14-104 — Presumption That Seller Pays Transfer and Recordation Taxes.
Establishes the default rule that the grantor (seller) bears the obligation to pay transfer tax and recordation tax unless the contract of sale allocates these costs otherwise. The first-time buyer mandatory seller payment under §13-203(b) overrides any contrary contract term for that portion.
MD General Assembly: mgaleg.maryland.gov — Real Property §14-104 - Md. Code, Tax–Property Article §§13-207 and 12-108 — Transfer Tax Exemptions.
§13-207 lists statewide transfer tax exemptions including government entities and qualifying nonprofits. §12-108 lists recordation and transfer tax exemptions, including transfers between spouses and close relatives (§12-108(c)), agricultural land trust transfers (§12-108(u)), and other exempt instruments. Also covers the affidavit requirements for owner-occupied and first-time buyer exemptions.
MD General Assembly: mgaleg.maryland.gov — Tax-Property §13-207 - Prince George’s County Code §10-191 — Local Transfer Tax on Mortgages.
Authorizes Prince George’s County’s 1.40% local transfer tax and, uniquely, extends the tax to mortgages and deeds of trust recorded in the county — a rule found nowhere else in Maryland. Originally enacted by Public Local Laws 1979, ch. 304, and amended in 2002.
Reference: Prince George’s County Code, Subtitle 10, §10-191 - Anne Arundel County Bill 34-22 — Transfer Tax Tiered Rate (Effective 7/1/2023).
Amended Anne Arundel County’s local transfer tax to create a tiered flat-rate structure: 1.00% on consideration below $1,000,000 and 1.50% on consideration at or above $1,000,000, with the applicable rate applied to the full consideration (not a marginal bracket). Authorized under Maryland state enabling legislation (Pub. Loc. Laws 2021, ch. 712 and 2022, ch. 478).
Anne Arundel County Council: aacounty.org — County Council - Montgomery County Local Transfer Tax — Tiered Rate Ordinance.
Montgomery County’s local transfer tax uses a three-bracket structure: consideration under $40,000 taxed at 0.25%; $40,000–$69,999 taxed at 0.50%; $70,000 and above taxed at 1.00% — with the rate applied to the entire consideration (not marginal). Special rates also apply to farmland transfers and cooperative conversions.
Montgomery County Code, Chapter 52; MD Dept. of Legislative Services compilation - Baltimore City Code, Article 28, §17-2 — City Transfer Tax and Yield Tax Surcharge.
Establishes Baltimore City’s 1.50% local transfer tax, the owner-occupied exemption on the first $22,000 of consideration (requiring at least 7 months’ occupancy), and the yield tax surcharge: an additional 40% of the 1.50% transfer tax rate on the portion of consideration exceeding $1,000,000 on high-value sales.
Baltimore City Code: ca.baltimorecity.gov — Article 28 - Maryland Department of Assessments and Taxation (DAT) and Maryland Judiciary — Recording and Transfer Tax Resources.
DAT administers property assessments used in some transfer tax contexts and publishes county-level tax rate guides. The Maryland Judiciary (courts.state.md.us) provides access to each county’s Circuit Court Clerk, who collects transfer and recordation taxes at recording. Both agencies publish forms including the Declaration of Recordation/Transfer Tax (DRC-UD) and affidavit templates.
DAT: dat.maryland.gov | MD Courts: courts.state.md.us
Disclaimer: This guide is for general informational purposes only and does not constitute legal or tax advice. Maryland transfer tax rules are complex and change by jurisdiction. Rates shown are current as of 2026; verify all rates with the relevant county clerk’s office before closing. Always consult a licensed Maryland real estate attorney or settlement company. This guide covers transfer tax only — recordation tax is a separate obligation.