Key Takeaways
- Deed taxes are the big line. Transfer and recordation taxes total about 2.25% to 3.0% of a price under $1,000,000 in these four jurisdictions.
- The default is an equal split. Maryland law presumes a 50/50 split, and a contract can change it.
- A first-time Maryland buyer shifts the bill. The seller pays the whole 0.25% state transfer tax, plus local taxes unless the contract says otherwise.
- Nonresidents face 8.75% withholding. It is figured on net proceeds, and exemptions can remove it.
- Cash changes some lines, not the taxes. A direct cash sale drops commission and repair credits, but the deed taxes still apply.
Maryland seller closing costs start with the deed taxes. The state charges a 0.5% transfer tax, and Baltimore City and each county add their own transfer and recordation taxes. By default the buyer and seller split them equally, but one type of sale puts nearly all of them on the seller.
This guide covers each seller line on the settlement statement in Baltimore City, Baltimore County, Howard County, and Montgomery County, with two illustrative examples.
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Typical Maryland seller closing costs are the seller's share of transfer and recordation taxes, prorated real estate taxes, loan and lien payoffs, and settlement fees, plus commission on a listed sale.
- Deed taxes: state transfer, local transfer, and local recordation taxes.
- Real estate tax proration: your share of the July 1 tax year.
- Payoffs: the mortgage, any liens, a tax sale redemption, or a Baltimore ground rent redemption.
- Settlement charges: title company or settlement attorney fees.
- Commission: if you list with an agent.
- Nonresident withholding: if you live outside Maryland.
In the four places covered here, deed taxes total about 2.25% to 3.0% of a price under $1,000,000 before anyone splits them.
Prices set the scale. Maryland REALTORS reported a statewide median sale price of $445,000 in August 2026 (Maryland REALTORS, August 2026). The same Bright MLS report put Baltimore City at $225,000, down 8.2% from a year earlier, and both Howard and Montgomery counties at $640,000.
The Zillow Home Value Index for Maryland was $428,308, flat over the year (Zillow ZHVI, August 2026).
How Much Is the Maryland Transfer Tax?
The Maryland transfer tax is 0.5% of the price, collected when the deed is recorded (Md. Code, Tax-Property §13-203). The taxed "consideration" includes any mortgage the buyer assumes. On a $400,000 sale, the state tax is $2,000.
The first-time Maryland buyer rate
One exception changes the math. When a "first-time Maryland home buyer" buys improved residential real estate to live in, the rate drops to 0.25%. The statute adds that "the transfer tax shall be paid entirely by the seller" (§13-203(b)(3)).
That buyer is an individual who has never owned a principal residence in Maryland and swears to it. On a $400,000 sale, the state tax falls to $1,000, but the seller pays all of it instead of half of $2,000.
For a sale to a first-time Maryland buyer, the law says the entire State transfer tax "shall be paid by the seller," with no exception for a contrary agreement (Md. Code, Real Property §14-104(c)(2)). Only the local transfer and recordation taxes in that sale can be shifted by contract.
County Transfer and Recordation Taxes by Jurisdiction
In these four places, local deed taxes add a transfer tax of 1% to 1.5% and a recordation tax that each county, and Baltimore City, sets per $500 of price (Md. Code, Tax-Property §12-103). Rates below are from the state's local tax table, the Baltimore City Code, and Montgomery County (Department of Legislative Services, fiscal 2026).
| Tax or fee | State rate | Baltimore City | Howard | Montgomery | Who pays by custom |
|---|---|---|---|---|---|
| State transfer tax | 0.5% (0.25% to a first-time Maryland buyer) | Same | Same | Same | Split equally; seller pays all in a first-time buyer sale |
| Local transfer tax | None (set locally) | 1.5% | 1.25% | 1% | Split equally unless the contract says otherwise; seller in a first-time buyer sale unless agreed |
| Recordation tax | None (each county sets a rate per $500) | $5.00 per $500 (1.0%) | $2.50 per $500 (0.5%) | $4.45 per $500, plus tiered premiums above $500,000 | Split equally unless the contract says otherwise; seller in a first-time buyer sale unless agreed |
| High-price add-on | None | Yield Tax above $1,000,000 | None in the state table | Higher recordation tiers from $600,000 | Follows the split for the underlying tax |
| Total deed taxes under $1,000,000 | 0.5% | 3.0% | 2.25% | About 2.4% to 2.8% | About half each |
Baltimore City
Baltimore City is an independent city, separate from Baltimore County. Its transfer tax is 1.5% (Baltimore City Code, Art. 28 §17-2). The recordation tax is $5 for each $500 of price (Art. 28 §16-1).
On a sale above $1,000,000, the city adds a Yield Tax of 40% of the city transfer tax and 15% of the city recordation tax (Art. 28 §17.1-2). The code applies them to the whole amount collected, not just the part above $1,000,000. On an illustrative $1,200,000 sale, that adds $9,000.
The first $22,000 of price is exempt from recordation tax when the buyer will live in the house, and from transfer tax too under $250,000. That break goes to the buyer unless the seller pays the whole tax (Art. 28 §16-2, §17-2(d)).
Baltimore County
Baltimore County charges a 1.5% transfer tax and $2.50 per $500 in recordation tax (Department of Legislative Services, fiscal 2026). With the state tax, that is 2.5%. Towson and Dundalk are county addresses.
Howard County
Howard County charges a 1.25% transfer tax and $2.50 per $500 in recordation tax (Department of Legislative Services, fiscal 2026). With the state tax, the total is 2.25%, covering Columbia and Ellicott City.
Montgomery County
Montgomery County's transfer tax is typically 1% of the selling price (Montgomery County MC311). Its recordation tax is $4.45 per $500 on the full price (a $2.08 base plus a $2.37 school increment).
Above $500,000, premiums apply to each slice: $2.30 per $500 to $600,000, $5.75 to $750,000, $6.33 to $1,000,000, and $6.90 above that (Montgomery County Department of Finance, Bill 17-23). A buyer who will live in the house can exempt the first $100,000, worth $890.
Who Pays Maryland Transfer and Recordation Taxes?
By default, the buyer and seller each pay half of the recordation tax and the state and local transfer taxes (Md. Code, Real Property §14-104). The law presumes the parties "intended that the cost of any recordation tax or any State or local transfer tax shall be shared equally between the grantor and grantee." The grantor is the seller.
How a contract can move the split
The split applies "in the absence of a contrary provision in the agreement," so a contract can move it either way. Read the deed tax paragraph before you sign.
The first-time Maryland buyer exception
A sale of an improved residential house to a first-time Maryland buyer who will live in it flips the default. The seller pays the entire recordation tax and local transfer tax "unless there is an express agreement" otherwise (§14-104(c)(1)). The seller also pays the entire state transfer tax, and that part has no exception (§14-104(c)(2)).
Every buyer on the deed must qualify and sign a statement under oath. If your buyer may qualify, ask the title company to run your costs both ways before you accept.
Worked Examples: $400,000 in Baltimore City and $640,000 in Montgomery
Deed taxes on an illustrative $400,000 Baltimore City sale total $12,000, so the seller's half is $6,000. On an illustrative $640,000 Montgomery County sale, they total $16,216, and the seller's half is $8,108.
Both examples are illustrative and show tax lines only. The equal-split rows assume no owner-occupant exemption. The first-time buyer rows assume the buyer qualifies, claims the local exemption, and the contract is silent on taxes.
| Tax line (illustrative) | $400,000, Baltimore City | $640,000, Montgomery County |
|---|---|---|
| State transfer tax (0.5%) | $2,000 | $3,200 |
| Local transfer tax | $6,000 (1.5%) | $6,400 (1%) |
| Recordation tax | $4,000 ($5.00 per $500) | $6,616 ($5,696 + $460 + $460) |
| Total deed taxes | $12,000 (3.0%) | $16,216 (about 2.5%) |
| Seller's share at an equal split | $6,000 | $8,108 |
| Seller's share, first-time Maryland buyer, contract silent | $10,780 ($1,000 + $6,000 + $3,780) | $13,726 ($1,600 + $6,400 + $5,726) |
In Montgomery, the full $640,000 carries $4.45 per $500, or $5,696. The $500,000 to $600,000 slice adds $460, and the $600,000 to $640,000 slice adds $460.
In the first-time buyer rows, the local exemptions trim recordation by $220 and $890. The seller's tax bill still rises by several thousand dollars.
Real Estate Tax Proration, Ground Rent, and Payoffs
Beyond deed taxes, the seller typically pays real estate taxes through the closing date, and every loan and lien is paid from the proceeds.
The July 1 tax year
Maryland's real estate tax year runs "July 1 to June 30" (Md. Code, Tax-Property §1-101). The tax is due July 1 and can be paid without interest through September 30 (§10-102).
If you paid the full year and close in the fall, the buyer typically credits you for the days after closing. If the bill is open, your share typically comes out of proceeds. Baltimore City's local rate is $2.248 per $100 of assessed value (Department of Legislative Services, fiscal 2026).
Baltimore ground rent
Many older Baltimore houses carry ground rent, a yearly payment to the owner of the land. The leaseholder can redeem it after 30 days' notice (Md. Code, Real Property §8-804). The price is the annual rent times a multiplier set by when the lease was created:
- 8.33 times for a lease created after July 1, 1982.
- 25 times for a lease executed from April 8, 1884 to April 5, 1888.
- 16.66 times for a lease created at any other time.
An illustrative $90 yearly rent from 1950 redeems for about $1,499. A sale can close subject to the ground rent or redeem it from proceeds. Our guide to selling a Baltimore house with ground rent covers registration and back rent.
Mortgage payoffs, liens, and tax sale redemption
The title company or settlement attorney pays each lender and lienholder at closing. If a tax sale certificate was sold on the house, the redemption is paid from proceeds, and you keep the rest. Our guide to Maryland tax sale redemption explains how that amount is figured.
Selling From Out of State: The 8.75% Withholding
If you are a nonresident, the deed cannot be recorded until 8.75% of your net payment is paid toward your Maryland income tax (Md. Code, Tax-General §10-912). For a nonresident entity, the rate is 8.25%.
Those rates apply to sales after June 30, 2025 (Comptroller of Maryland, Tax Alert, April 2026). For individuals, the rate is the top state income tax rate plus the lowest county income tax rate.
It applies to net proceeds
The withholding is figured on the "total payment": the price, less secured debts paid at closing and the seller's settlement expenses. On an illustrative $400,000 sale with a $250,000 payoff and $10,000 in seller costs, $140,000 is subject to withholding, so $12,250 is held back.
Ways to reduce or remove it
- Principal residence: each seller certifies the house is their principal residence.
- Comptroller certificate: Form MW506AE must be received "no later than 21 days before closing date" (Comptroller of Maryland, Form MW506AE, 2026).
- Foreclosure transfers and zero-price deeds: exempt by statute.
The amount withheld is a credit on your Maryland return. Sellers at $1,500,000 or more can no longer ask for a tentative early refund and must file a full return (Comptroller of Maryland, April 2026). Heirs who live elsewhere should read our guide to selling an inherited house in Maryland.
Commission, Title, and Settlement Fees on a Listed Sale
On a listed sale, the agent's commission can be the largest seller cost after the loan payoff, and its rate is negotiated in the listing agreement. Ask for the rate and what it covers in writing before you sign.
A title company or settlement attorney typically runs Maryland closings by practice; no Maryland statute requires an attorney. Seller-side charges often cover deed preparation, recording the mortgage release, payoff and wire fees, and a settlement fee.
A buyer's inspection can also lead to repair requests, a credit at closing, or a lower price.
What a Cash Offer Changes, and What It Does Not
A direct cash sale removes the commission and repair credits, but the same Maryland transfer and recordation taxes still apply to the deed. The state and county tax the deed, not the loan.
The contract still decides who pays them, and prorations, payoffs, and nonresident withholding still apply. The first-time buyer rule covers only individuals, so it does not apply when a company buys.
Propcash is a direct cash homebuyer that buys houses as a principal, so you work with the decision-maker from first call to closing. We make one transparent, data-backed cash offer and show how we got to our number. Sellers pay no fees or commissions to Propcash, and no closing costs are charged to you.
You sell as-is, with no repairs or showings, and you pick the closing date. Once title is clear, a cash sale can close in as few as 7 days.
If the house shows well and you have time, listing with an agent may net you more. If a cash sale isn't your best move, we'll tell you and point you to a local agent who fits. We may receive compensation from agents we refer.
Our guide to a cash offer vs. a traditional sale compares both paths. When you are ready, you can get a cash offer to compare. Our Maryland cash offer page explains how the process works.
Why wait? Sell your house “as is” for cash today
Tell us about your house. We'll make you a cash offer based on local market data.
Let's chatFrequently Asked Questions
How much are seller closing costs in Maryland?
Maryland seller closing costs usually include half the transfer and recordation taxes, prorated real estate taxes, payoffs, settlement fees, and commission on a listed sale. In Baltimore City, Baltimore County, Howard, and Montgomery, deed taxes total about 2.25% to 3.0% of a price under $1,000,000. At the default equal split, the seller's share is roughly 1.1% to 1.5% of the price.
Who pays the transfer tax in Maryland, the buyer or the seller?
Maryland law presumes the buyer and seller split the state transfer tax, local transfer tax, and recordation tax equally (Md. Code, Real Property §14-104(b)). The contract can change that split. In a sale to a first-time Maryland buyer who will live in the house, the seller pays the state transfer tax and, unless agreed otherwise, the local taxes.
What is the Maryland transfer tax rule for first-time buyers?
When an individual who has never owned a principal residence in Maryland buys a house to live in, the state transfer tax drops from 0.5% to 0.25%. The seller must pay all of it (Md. Code, Tax-Property §13-203(b)(3)), and a contract cannot shift it. The seller also pays the local transfer and recordation taxes unless the parties expressly agree otherwise.
How much are transfer and recordation taxes in Baltimore City?
Baltimore City charges a 1.5% transfer tax and a recordation tax of $5.00 per $500, or 1.0%, on top of the 0.5% state transfer tax. That totals about 3.0%, or about 1.5% per side at an equal split. Above $1,000,000, the city's Yield Tax adds 40% of the city transfer tax and 15% of the city recordation tax.
Do out-of-state sellers pay withholding when they sell a Maryland house?
Yes, unless an exemption applies. A nonresident individual's deed cannot be recorded until 8.75% of the net payment is paid toward Maryland income tax, or 8.25% for a nonresident entity (Md. Code, Tax-General §10-912). Certifying that the house is your principal residence, or a Comptroller certificate requested on Form MW506AE at least 21 days before closing, can reduce or remove it.
Does a cash sale avoid Maryland transfer taxes?
No. Maryland's transfer and recordation taxes apply to the deed, so a cash sale owes the same taxes as a financed one. A direct cash sale to a buyer like Propcash can remove the commission and repair credits. The contract states who pays each tax line.
Maryland Code on mgaleg.maryland.gov (read September 2026), the Baltimore City Code, Montgomery County, the Department of Legislative Services, the Comptroller of Maryland, and the market sources dated above. Examples are illustrative. This is general information, not legal or tax advice.