What sellers pay at closing in Maryland
Maryland's transfer and recordation taxes, how the law splits them, the first-time buyer rule, and why your county matters.
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The short answer
Maryland's state transfer tax is 0.5% of the price, and counties add their own transfer and recordation taxes. Unless the contract says otherwise, Maryland law presumes buyer and seller split these taxes equally. When every buyer is a first-time Maryland home buyer who will live in the home, the state rate drops to 0.25% and the seller pays it, along with the recordation and local transfer taxes unless the parties expressly agree otherwise.
Step by step
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1
State transfer tax: 0.5%
Tax-Property § 13-203 sets the state transfer tax at 0.5% of the price. For a sale of a home to a first-time Maryland home buyer who will live there, the rate is 0.25% and the seller pays all of it.
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2
The default is a 50/50 split
Real Property § 14-104 presumes the recordation tax and any state or local transfer tax are shared equally between seller and buyer when the contract doesn't say otherwise. Your contract can set a different split.
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3
First-time buyers shift the cost to you
If each buyer is a first-time Maryland home buyer who will occupy the home, § 14-104 says the seller pays the entire state transfer tax, and the entire recordation and local transfer tax unless the parties expressly agree otherwise.
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County rates vary
Each county sets its own rates. In Baltimore City (Fiscal 2027) the transfer tax is 1.5% and the recordation tax is $5.00 per $500. Baltimore County lists 1.5% of the price, not counting the first $22,000 of a residential transfer, and $2.50 per $500.
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Payoffs, prorations and commission
Your mortgage and any liens are paid from the proceeds, property taxes are split by days owned, and any listing commission is whatever you negotiated. NAR says agent compensation remains fully negotiable.
Sources: Maryland Code, Tax-Property § 13-203 · Maryland Code, Real Property § 14-104 · Baltimore City Bureau of the Budget and Management Research, City Tax Rates, Fiscal 2027 · Baltimore County Office of Budget and Finance, Tax Rates · National Association of REALTORS, Home Sellers: Here's What the NAR Settlement Means for You
This is general information, not legal or tax advice. Rates and rules change; confirm the numbers for your sale with your settlement agent, an attorney or a tax professional.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
When we show the cash offer next to what listing could net, we list each transfer and recordation cost line by line and who pays it.
Frequently asked questions
Who pays transfer tax in Maryland, the buyer or the seller?
Unless the contract says otherwise, Maryland law presumes the recordation tax and the state and local transfer taxes are split equally. If the buyer is a first-time Maryland home buyer who will live in the home, the seller pays the state transfer tax at 0.25%, and the recordation and local transfer taxes too unless the parties expressly agree otherwise.
How much is the transfer tax in Baltimore City?
For Fiscal 2027, Baltimore City's transfer tax is 1.5% of the price and its recordation tax is $5.00 per $500. The state's 0.5% transfer tax is on top of that.
I don't live in Maryland. Is anything else taken at closing?
Possibly. Maryland requires income tax withholding at closing on many sales by nonresident owners. Our guide to Maryland nonresident withholding explains how it works.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.