How Do Transfer Taxes Work In Maryland
When a home is sold in Maryland, several taxes and fees are due to the state and county. Although each charge has its own name and purpose, most people refer to all of them collectively as “transfer taxes.” In reality, there are three separate categories that show up on the settlement statement:
- State Transfer Tax
- State Recordation Tax
- County Transfer Tax
All three are government‑required charges . They are not optional or negotiable. However, WHO pays them (buyer/seller/both) is negotiable in the sales contract.
These taxes also apply during refinances or when a deed is changed, even if no sale occurs. The title company handles collecting and paying all of these at closing, so buyers and sellers do not need to write checks to the government or worry about these when filing personal taxes.
State Transfer Tax (Maryland)
Maryland charges a 0.5% State Transfer Tax on the sales price of the home.
Under the standard Maryland contract, this tax is split 50/50 between buyer and seller in every county.
First‑Time Buyer Exemption: Maryland offers a significant benefit for first‑time buyers. The buyer’s half of the State Transfer Tax is fully exempt. The seller still pays their half.
State Recordation Tax
Recordation tax is charged when a new deed or new mortgage is recorded. The rate is set by each county, so it varies across Maryland. Here are the rates for the counties most relevant to local buyers and sellers:
Harford County: 0.66% or $6.60 per $1,000
Baltimore County: 0.50% or $5.00 per $1,000
Cecil County: 0.82% or $8.20 per $1,000
Under the standard Maryland contract, recordation tax is also split 50/50 between buyer and seller.
First‑Time Buyer Discount: First‑time buyers pay a reduced recordation tax rate of $1 per $500 of consideration. Sellers still pay their full half.
County Transfer Tax
Some Maryland counties charge an additional transfer tax. Local rates are:
Harford County: 1%
Baltimore County: 1.5%
Cecil County: 0.5%
Again, these taxes are also split 50/50 under the standard Maryland contract unless negotiated otherwise.
Example:
Harford County Transfer Taxes on a $400,000 Sale
State Transfer Tax (0.5%): $2,000
State Recordation Tax (0.66%): $2,640
County Transfer Tax (1%): $4,000
Total: $8,640 Split 50/50: $4,320 each
Transfer taxes are often one of the largest closing costs for both parties, which is why understanding them early helps avoid surprises at the settlement table.
Title Company Responsibilities
Buyers and sellers do not need to pay these taxes separately or file anything with the government. The title company calculates all taxes, collects them on the settlement sheet, and pays the state and county directly.
Important Disclaimer
Federal, state, and local tax rates can change at any time. The rates listed in this blog reflect the current rates as of the date of publication.
York County, Pennsylvania
For buyers looking to cross into PA or sellers with property in PA, it’s very similar but the rates vary.
York County, PA:
PA State Transfer Tax: 1%
York County Transfer Tax: 1%
No State Recordation Tax
Total transfer tax is typically 2%, usually split 50/50 between buyer and seller unless negotiated differently.
Final Takeaway
Transfer taxes are not small — but they are predictable. Understanding how Maryland and Pennsylvania calculate these fees helps buyers and sellers plan ahead, avoid surprises, and make confident financial decisions at the closing table.
Also remember Transfer Taxes apply anytime a deed or mortgage is filed. That means even if the property is not changing hands, there may still be Transfer Taxes due for things like refinances, adding/removing someone from a deed, putting a property in a trust, LLC or estate, etc.
Make sure you select an agent who doesn’t just run a quick CMA or schedule showings, but actually helps you interpret these numbers, anticipate your true bottom line, and position your home to outperform competing listings or structures your offers to win out over other buyers.
If this sounds like the service you desire, reach out to me personally for no pressure, 1-on-1 personalized advice about your real estate goals. No committing, just consulting.
Check out my full library of blogs HERE for all of the information you need to make smart, educated real estate decisions and position yourself as a powerhouse buyer or seller!
Plus follow me on Facebook, LinkedIn, and Instagram to stay in touch!