Relating to Real Estate

Please note this table is accurate as of October 1, 2025 and is subject to change. There are a number of exemptions to recordation and transfer taxes that are set forth in Md. Code, Tax-Property Article §12-108 as well as in the codes of the local jurisdictions.

In connection with the recordation of documents among the land records of Baltimore City and the 23 counties in Maryland (collectively called the “jurisdictions”), taxes are generally required to be paid before documents are accepted.  For example, deeds are subject to three separate taxes, except in Baltimore City where deeds for sales of property in excess of $1million are subject to four taxes.  The taxes are:

1.    Recordation tax imposed by Title 12 of the Tax-Property Article of the Maryland Code.  Although State law establishes and imposes the recordation tax, the rate of recordation tax is set by each individual jurisdiction.  Unless there is an applicable exemption, a recordation tax is applicable to every “instrument of writing,” which term when used in connection with recordation tax includes deeds, contracts, leases, certain assignments, and security instruments, such as mortgages and deeds of trust.  Recordation taxes are formally expressed as a specific dollar amount on each $500 (or portion of $500) of the consideration paid or debt secured.  For ease of understanding the recordation tax, but at the expense of precision in some cases, the chart below expresses the recordation tax as a percentage of the consideration paid or debt secured.
2.    State transfer tax imposed by Title 13 of the Tax-Property Article of the Maryland Code.  This is a State imposed tax at the State-set rate of .5% of the consideration.  It is imposed on deeds and other instruments that trigger recordation tax, except that the State transfer tax is not applicable to security instruments, including mortgages and deeds of trust.  The State transfer tax is .25% of the consideration when the buyer is a first-time Maryland homebuyer, and in such cases the State transfer tax must be paid by the seller.
3.    Local transfer tax imposed, if at all, by the applicable county or Baltimore City.  State law permits the counties and Baltimore City to impose their own transfer taxes, and most, but not all, have done so.  Where there is a local transfer tax it is imposed on deeds and other instruments of writing other than security instruments, except in Prince George’s County where the local transfer tax is also imposed on security instruments.
4.    Baltimore City Yield Tax.  In Baltimore City for transactions whose value exceeds $1 million there is also a yield tax.  The yield tax is a surcharge in an amount equal to 15% of the recordation tax collected and 40% of the Baltimore City transfer tax collected.  To the extent that there is an exemption for either the recordation tax or the Baltimore City transfer tax, there is no yield tax surcharge on the exempted amount. The chart below includes the yield tax in the calculations of the recordation tax and the local transfer tax in Baltimore City.

The first chart below was prepared to set forth in one place the taxes on instruments of writing that are recorded in the Maryland land records.  Because of the intricacies of these taxes and certain of the exemptions to them, the chart is heavily footnoted.  Additionally, Titles 12 and 13 of the Tax-Property Article of the Maryland Code and most of the codes for the jurisdictions contain other exemptions, which may reduce or eliminate one or more of these taxes in applicable situations.

Payment of these taxes may be made as the parties to the instruments may determine, except that the State transfer tax where there is a first-time homebuyer must be paid by the seller, and that rule is applicable in certain counties that apply the same type of exemption to their local transfer tax.

Recordation and Transfer Taxes in Maryland as of October 1, 2025¹

¹ This information is as of October 1, 2025, and is subject to change.  As transfer and recordation tax rates are subject to change, the clerk of the applicable circuit court should be consulted for the latest information.  Additionally, there are recording fees on the recordation of instruments in the land records.  Furthermore, there are a number of exemptions to recordation and transfer taxes that are set forth in Md. Code, Tax-Property Article §12-108 and 13-207 as well as in the codes of the local jurisdictions.

 ² Recordation tax rates are actually stated as $X per $500 of consideration, with the consideration rounded up to the nearest $500.  This chart converts the recordation tax to a percentage for each jurisdiction.  If the base is not evenly divisible by $500, to calculate the recordation tax, round up to the next closest number that is evenly divisible by $500 and then apply the stated percentage.  
This column is the tax on mortgages and deeds of trust except that in Prince George’s County to determine the tax on mortgages and deeds of trust add the column headed “Local Transfer Tax.”  Note that the tax on mortgages and deeds of trust must be reduced for any applicable exemption.

³ For a first-time Maryland homebuyer who will occupy the property as a principal residence, the rate is .25%, and it must be paid by the seller.
 
⁴ For a first time Maryland homebuyer purchasing a principal residence, the rate is .25% and the transfer tax must be paid entirely by the seller.

⁵ The column headed “Total for Deeds” is the total of the recordation and transfer taxes (and the Baltimore City yield tax, if applicable for) on deeds recorded in the respective jurisdictions. Note that the “Total for Deeds” must be reduced for any applicable exemption.  

⁶The first $50,000 of the consideration payable on an instrument of writing for residentially improved owner-occupied real property is exempt if the buyer provides a statement under oath that the buyer will occupy the residence.

⁷The additional amount for larger transactions in Baltimore City is called the yield tax.  Also, the first $22,000 of the amount payable on the conveyance of owner-occupied residential property is exempt if the buyer signs a statement under oath that the property will be buyer’s principal residence for at least 7 of the 12 months following the conveyance.

⁸The additional amount for larger transactions in Baltimore City is called the yield tax.  Also, the first $22,000 of the amount payable on the conveyance of owner-occupied residential property is exempt if the total amount payable is less than $250,000 and the buyer signs a statement under oath that the property will be buyer’s principal residence for at least 7 of the 12 months following the conveyance.

⁹The first $22,000 of the price of residential owner-occupied property is exempt.

¹⁰The first $25,000 of the amount payable on the conveyance of owner-occupied residential property if the buyer signs a statement under oath that the property will be the buyer’s principal residence for at least 7 of the next 12 months. The first $75,000 of the amount payable on the conveyance of owner-occupied residential property if the buyer signs a statement under oath that the buyer a first-time Maryland homebuyer.

¹¹The rate is .25% for a first-time Maryland homebuyer who will occupy the property as the buyer’s principal residence.

¹²The first $30,000 of consideration is exempt if the buyer files an affidavit stating the property will be owner-occupied.

¹³The transfer tax does not apply to the first $50,000 of the consideration payable for the transferred real property. 

¹⁴The Montgomery County recordation tax is very complicated. The chart titled Montgomery County Recordation Tax sets this out.

¹⁵The Montgomery County transfer tax is generally 1%.  However, the rates on improved residential property are: (1) 0.25% on property where the value of the full consideration is less than $40,000.00; (2) 0.50% on property where the value of the full consideration is $40,000.00 or more, but less than $70,000.00; and (3) 1% on property where the value of the full consideration is $70,000.00 or more.  Also, there are special rates for farmland, rezoned land, and condominium and cooperative conversions.

¹⁶In Prince George’s County only, the local transfer tax applies to mortgages and deeds of trust as well as to deeds.

¹⁷The rate is .25% for a first-time Maryland homebuyer who will occupy the property as the buyer’s principal residence.

¹⁸The transfer tax does not apply to the $30,000.00 of consideration payable on the conveyance of owner-occupied residential property if the buyer intends to use the property as the buyer's principal residence by actually occupying the residence for at least 7 months of a 12-month period.

¹⁹The first $50,000 of consideration for an owner-occupied residence is exempt.

²⁰The transfer tax does not apply to the first $50,000 of the consideration payable for the transferred real property. Also, there is a reduced rate of .25% for a deed to a first time Washington County homebuyer who will use the property as the individual’s principal residence, who has been a resident of Washington County for 12 months prior to the purchase, and has purchased the residence for less than $115,000.

²¹The first $50,000 of the purchase price is exempt from the county transfer tax if the property will be the buyer's principal residence and occupied for at least 7 months of the year. 

Montgomery County Recordation Tax
As a result of Bill 17-23, as of October 1, 2023, recordation taxes in Montgomery County are as follows:

*The first $100,000 of the consideration payable on the conveyance of any owner-occupied residential property is exempt from the recordation tax if the buyer is an individual and intends to use the property as the buyer’s principal residence by actually occupying the residence for at least 7 months of the 12-month period immediately after the property is conveyed.