Closing costs in Maryland
Maryland closings carry a 0.5% state transfer tax — customarily split between buyer and seller, and cut to 0.25% paid entirely by the seller for first-time Maryland buyers — plus county transfer and recordation taxes that vary sharply by county. Montgomery County uses a graduated recordation ladder that climbs from 0.89% to 2.27% by price bracket. The calculator below is preset for a Montgomery County purchase; the county table further down covers the rest.
Preset for a Montgomery County purchase — flip the toggle to compare. Guides: Washington, DC · Virginia · all three side by side.
Sellers: this excludes the real-estate commission, which is separate and negotiated in your listing agreement.
Get an exact estimate from Kelly →Rough estimate only — not a quote, and not legal or tax advice. Rates below are current as of September 2026, cited to Maryland statute, the enacted Montgomery County legislation, and county government pages; counties do change these. Who pays what is customary, not fixed — it is negotiable in the contract. Confirm exact figures with your lender and settlement/title company — Kelly will walk you through the real numbers for your deal.
Maryland's state transfer tax
The state's share is simple: 0.5% of the price on every transfer, customarily split 50/50 between buyer and seller (Md. Tax-Property §13-203). For first-time Maryland homebuyers purchasing a principal residence, the statute does two favors at once: the rate drops to 0.25%, and it must be paid entirely by the seller. If several buyers take title together, all of them must qualify. Everything beyond that 0.5% is county-level — and that's where Maryland gets complicated.
Montgomery County: the graduated ladder
Where most of Kelly's Maryland clients buy, recordation tax is charged in marginal brackets, like income tax — each slice of the price is taxed at its own rate (Bill 17-23, enacted 2023):
| Portion of price | Marginal rate |
|---|---|
| Up to $500,000 | 0.89% |
| $500,000 – $600,000 | 1.35% |
| $600,000 – $750,000 | 2.04% |
| $750,000 – $1,000,000 | 2.156% |
| Above $1,000,000 | 2.27% |
Buyers who will live in the home get the first $100,000 exempt from the base recordation layers — worth about $890 — and that owner-occupant break is not limited to first-timers. Montgomery also levies its own county transfer tax on top of the state's — at rates the state's FY2026 revenue report describes as varying with the property's value (Maryland DLS, County Revenue Outlook) — customarily split 50/50. Stacked together, Montgomery purchases carry some of the region's heaviest closing taxes; Kelly or your title company will price the exact county figure for your contract.
Other counties Kelly's clients ask about
| County | Recordation tax | County transfer tax | Source |
|---|---|---|---|
| Frederick | $7.00 per $500 (1.4%) | None — state 0.5% only | County land records |
| Howard | $2.50 per $500 (0.5%) | 1.25% | County finance |
| Anne Arundel | $7.00 per $1,000 (0.7%) | 1.0% (1.5% at $1M+) | County finance |
| Prince George's | Confirm current figure before budgeting | 1.4% | Maryland DLS |
Recordation customs in Maryland generally split 50/50 between the parties, but — as everywhere in the DMV — the contract controls. Buying or selling outside these counties? Kelly will pull the current rates for your exact jurisdiction before you write or accept an offer.
What else is in “closing costs”
Beyond taxes: title search and insurance, settlement fees, lender charges and prepaid escrows — roughly ~1–1.5% more for buyers as a planning figure (the calculator's "other" field). Sellers separately account for the commission in their listing agreement. For the process end to end, see the buyer's guide and seller's guide.
Maryland closing costs, asked and answered
Who pays closing costs in Maryland?
Custom says the buyer and seller split the state transfer tax and the county recordation tax 50/50, with county transfer taxes also customarily shared — but Maryland law fixes very little of this, so the contract controls. The big statutory exception: for first-time Maryland buyers, the reduced 0.25% state transfer tax must be paid entirely by the seller.
How much are closing costs in Maryland?
It depends heavily on the county. Montgomery County carries some of the region's heaviest closing taxes — the graduated recordation ladder plus state and county transfer taxes — with roughly another 1–1.5% in title, lender and escrow charges on the buyer's side. In Frederick County — with no county transfer tax — the load is meaningfully lighter. The calculator above gives your side in seconds.
How does Montgomery County's recordation tax work?
In marginal brackets, like income tax: 0.89% on the first $500,000, then 1.35%, 2.04% and 2.156% on successive slices, and 2.27% on everything above $1 million. Owner-occupants get the first $100,000 exempt from the base layers — about an $890 saving — whether or not it's their first home.
What's the first-time Maryland homebuyer break?
Two things, by statute: the state transfer tax drops from 0.5% to 0.25%, and the seller must pay all of it. Every person taking title must be a first-time Maryland buyer who will live in the home (co-signers who won't occupy don't spoil it). County-level breaks — like Montgomery's owner-occupant exemption — stack on separately.
Is there a state recordation tax in Maryland?
No — recordation tax is set county by county under state enabling law, which is why Frederick charges 1.4%, Howard 0.5%, and Montgomery a graduated ladder. It's the single biggest reason two Maryland closings at the same price can cost very different amounts.
Are Maryland closing costs higher than DC or Virginia?
Montgomery County and DC compete for the region's highest closing taxes, and both sit far above Virginia, whose combined rates are well under 1%. Where your deal lands depends on the county and price bracket — the three-jurisdiction calculator on this page shows the comparison instantly.
Can I negotiate who pays these taxes?
Yes — apart from the statutory first-time-buyer rule, every allocation is a contract term. Seller credits toward buyer costs are a routine Maryland negotiation, and Kelly prices them into every offer strategy.
Know your Maryland costs before you write the offer.
Kelly builds every client a clear, deal-specific cost estimate up front — and negotiates credits and terms to keep more in your pocket.