Buyer closing costs in Maryland
Maryland buyer closing costs include transfer and recordation taxes plus other settlement charges. Your down payment also counts toward cash to close, the amount still due after deposits, credits and adjustments. This guide explains the taxes in six counties and the other costs to review with your lender.
Who pays transfer and recordation taxes in Maryland
Maryland has a state transfer tax, and counties add a recordation tax and, in most of the counties below, their own transfer tax. When the contract doesn't say who pays, the law presumes the buyer and seller share these taxes equally (Real Property § 14-104(b)).
The rule is different when you are a first-time Maryland homebuyer buying an improved home you will live in as your principal residence. The state transfer tax rate drops from 0.5% to 0.25%, and the seller pays all of it (Tax-Property § 13-203; Real Property § 14-104(c)(2)). The seller also pays all of the county recordation and transfer taxes, unless your contract expressly says the seller will not pay them all (§ 14-104(c)(1)).
Read your contract's tax clause before you sign. If it shifts the county taxes to you, the default no longer applies to those taxes.
Who counts as a first-time Maryland homebuyer
Under the tax rule, you qualify if you have never owned residential property in Maryland that was your principal residence (§ 14-104(a)). If you're buying with someone else, each buyer has to qualify, except that a co-signer or guarantor on the purchase loan who will not live in the home doesn't disqualify you (§ 14-104(c)(4)). Each buyer, or an agent for the buyer, signs a statement under oath (§ 14-104(c)(5)).
The Maryland Mortgage Program uses a different test. For its 1st Time Advantage loans, it counts you as a first-time buyer if it has been more than three years since you owned a principal residence, with exceptions for buyers in targeted areas and some honorably discharged veterans. You can meet one test and not the other. Someone who owned and lived in a Maryland home in the last three years generally won't meet either test, unless an MMP exception such as a targeted area applies.
Tax rates in six Maryland counties
Every county below also carries the state transfer tax of 0.5%, or 0.25% for a first-time Maryland homebuyer. Rates were checked against the sources at the end of this page on September 17, 2026.
| County | County transfer tax | Recordation tax | Buyer notes |
|---|---|---|---|
| Anne Arundel | 1.0% below $1,000,000; 1.5% of the entire price at $1,000,000 or more | $7.00 per $1,000, rounded up to the next $500 | The step at $1,000,000 applies to the whole price. |
| Charles | 0.5% | $7 per $500 (in effect since July 25, 2025) | Rate set by Bill 2025-04. |
| Frederick | None | $7 per $500 | No county transfer tax. |
| Howard | 1.25% (in effect since July 1, 2020) | $2.50 per $500, rounded up to the next $500 | The county publishes a transfer tax exemption and rate reduction affidavit. Ask the county finance office whether you qualify. |
| Montgomery | 1% at $70,000 and up | $4.45 per $500, plus added amounts on the part of the price above $500,000, $600,000, $750,000 and $1,000,000 | The first $100,000 is exempt from recordation tax when an individual buyer will live in the home at least 7 of the first 12 months. |
| Prince George's | 1.4% | $2.75 per $500, rounded up to the next $500 |
The Montgomery exemption belongs to the buyer's occupancy, but it lowers the total tax, and under an even split both sides share the savings. Other exemptions exist in state law for specific kinds of transfers. Your title company applies them.
Your share of the taxes on a $500,000 home
This assumes the contract doesn't change who pays. The middle column is for a buyer who is not a first-time Maryland homebuyer.
| County | All three taxes | Your half (not first-time) | Your share as a first-time Maryland homebuyer |
|---|---|---|---|
| Anne Arundel | $11,000 | $5,500 | $0 |
| Charles | $12,000 | $6,000 | $0 |
| Frederick | $9,500 | $4,750 | $0 |
| Howard | $11,250 | $5,625 | $0 |
| Montgomery, owner-occupied individual buyer | $11,060 | $5,530 | $0 |
| Montgomery, other buyers | $11,950 | $5,975 | $0 |
| Prince George's | $12,250 | $6,125 | $0 |
These are government taxes only, not your total closing costs. A first-time buyer's $0 assumes every buyer qualifies, each signs the required statement, and the contract doesn't shift the county taxes to the buyer.
Estimate your share of the taxes
Enter a price and county. The estimate uses the rates above and Maryland's rules on who pays. It runs in your browser, and nothing you type is saved or sent.
| Maryland state transfer tax | $2,500 |
|---|---|
| County transfer tax | $7,000 |
| County recordation tax | $2,750 |
| All three taxes | $12,250 |
| Your share if the contract is silent | $6,125 |
Maryland law presumes you and the seller split these taxes equally unless the contract says otherwise. This estimates government taxes only. It leaves out lender and title charges, insurance, prepaid items and prorations, and it doesn't apply other exemptions. Your lender and title company give the final figures.
What else goes into your cash to close
Your lender sends a Loan Estimate after you apply and a Closing Disclosure at least three business days before closing. Compare the two line by line, and ask your lender to explain any change. The costs below vary by lender, loan and property, so this guide doesn't put a typical figure on them. Use the numbers on your own Loan Estimate.
- Lender charges, such as origination or underwriting fees, and any points you choose to pay for a lower rate.
- Third-party charges your lender requires, such as the appraisal and credit report.
- Title and settlement charges, including the title search, settlement fee and lender's title insurance. Owner's title insurance is a separate policy.
- Recording fees charged by the circuit court clerk to record your deed and mortgage.
- Prepaid items: interest from closing through the end of that month, your first year of homeowners insurance, and deposits into an escrow account for property taxes and insurance.
- Property taxes and any HOA or condo dues, prorated to the settlement date.
- Any HOA or condominium fees your purchase contract or the community's documents assign to the buyer.
Seller credits: your contract can ask the seller to pay part of your closing costs. The credit appears on your Closing Disclosure, and your loan program may limit how much it can be.
Check your cash to close
On page 3 of your Closing Disclosure, compare the final figures with your Loan Estimate. Confirm that your deposit and agreed seller credit appear. Ask your lender or settlement company about any missing credit, changed charge or adjustment before closing.
Keep receipts for costs you paid earlier, such as an appraisal. Check how they appear on the disclosure so you do not count them twice. The tax estimator above covers transfer and recordation taxes only. It does not calculate your down payment or full cash to close.
Review the CFPB Closing Disclosure guide. Cash-to-close guidance checked October 4, 2026.
Maryland Mortgage Program and county help
The Maryland Mortgage Program, run by the Maryland Department of Housing and Community Development, offers 30-year fixed-rate home loans through more than 100 approved lenders. Most of its loan products for first-time and repeat buyers come with down payment assistance, as a grant or a deferred, no-interest loan. On 1st Time Advantage loans, assistance options run from a fixed $6,000 to 3%, 4% or 5% of the first mortgage, and up to 6% of the total loan amount on one option. Income and purchase price limits apply. The 1st Time Advantage loans require an approved homebuyer education class.
If you use a 1st Time Advantage 6000 or Flex 6000 loan and get help from one or more MMP-approved partners, MMP matches that help up to $2,500.
In Montgomery County, the Montgomery Homeownership Program has paired an MMP loan with a zero-interest deferred down payment loan of up to $50,000, capped at 40% of household income, according to its fact sheet dated April 8, 2026. The funds come from Montgomery County. Program terms and funding change, so confirm current availability with an approved lender.
See where you stand before you make an offer
The Buyer Readiness Score looks at your financing and offer position in a few minutes. Freddy can then walk through the taxes and costs for the homes you're considering.
Selling too? The Maryland seller closing-cost guide covers the other side of the same taxes. County guides: Prince George's, Montgomery, Anne Arundel, Howard, Frederick, Charles.
Sources (checked September 17, 2026)
- Maryland Code, Real Property § 14-104 — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp§ion=14-104&enactments=false
- Maryland Code, Tax-Property § 13-203 — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp§ion=13-203&enactments=false
- Anne Arundel County Government, Recordation and Transfer Tax — https://www.aacounty.org/finance/tax-information/recordation-and-transfer-tax
- Ballard Spahr, Navigating Transfer and Recordation Taxes in the DMV — https://www.ballardspahr.com/insights/alerts-and-articles/2023/09/navigating-transfer-tax-and-mortgage-recordation-tax-in-the-dmv-area
- Charles County Code § 281-1, Recordation Tax — https://ecode360.com/27241942
- Charles County Code Article X, Real Property Transfer Tax — https://ecode360.com/30600598
- Charles County Government, Treasury — https://www.charlescountymd.gov/government/fiscal-and-administrative-services/treasury-taxes/
- Frederick County Code § 1-8-51 — https://codelibrary.amlegal.com/codes/frederickcounty/latest/frederickco_md/0-0-0-2558
- Maryland Judiciary, Frederick County recording fees — https://www.mdcourts.gov/clerks/frederick/recordingfees
- Howard County Department of Finance, Recordation Tax — https://www.howardcountymd.gov/recordation-tax
- Howard County, Transfer Tax Exemption and Rate Reduction affidavit — https://www.howardcountymd.gov/finance/resource/transfer-tax-exemption-affidavit
- Montgomery County Code § 52-16B — https://codelibrary.amlegal.com/codes/montgomerycounty/latest/montgomeryco_md/0-0-0-150655
- Montgomery County Department of Finance, Recordation Tax New Tier Calculation Samples — https://assets.montgomerycountymd.gov/files/Recordation_Tax_New_Tier_Examples_0.pdf
- Montgomery County Code § 52-31, transfer tax levied; amount — https://codelibrary.amlegal.com/codes/montgomerycounty/latest/montgomeryco_md/0-0-0-150900
- Prince George's County, finance affidavit instructions — https://www.princegeorgescountymd.gov/sites/default/files/media-document/dcv24302_instructions-for-finance-affidavit-pdf.pdf
- Consumer Financial Protection Bureau, Closing Disclosure explainer — https://www.consumerfinance.gov/owning-a-home/closing-disclosure/
- Maryland Mortgage Program, About MMP — https://mmp.maryland.gov/about-mmp
- Maryland Mortgage Program, Down Payment Assistance — https://mmp.maryland.gov/home-loans/down-payment-assistance
- Maryland Mortgage Program, 1st Time Advantage — https://mmp.maryland.gov/home-loans/mmp-1st-time-advantage
- Maryland Mortgage Program, Montgomery Homeownership Program fact sheet, April 8, 2026 — https://mmp.maryland.gov/media/30
This guide is general information about Maryland taxes and home loan programs, not legal, tax or lending advice. Freddy Makinde is a licensed Maryland REALTOR with eXp Realty, not an attorney, lender or settlement agent. Confirm the figures for your purchase with your lender and title company.