Most states charge you one tax for the privilege of buying a house. Maryland charges two, and they stack.
The first is easy to look up: a state transfer tax of 0.5% of the sale price, or $2,317 on Maryland's median sale price of $463,449. The second catches people. Counties also levy a recordation tax on the documents recorded at closing, and state law lets each county set its own rate, so there's no statewide number to look up. Most land between 0.5% and 1.4%, Montgomery County's tiered schedule climbs to $11.35 per $500 on higher balances, and a flat $40 surcharge rides along statewide.
Half of Maryland's closing tax therefore depends on which side of a county line your house sits on. On a $370,759 loan, 0.5% is $1,854 and 1.4% is $5,191 — same loan, same state, $3,337 apart.
Below is where Maryland's money actually goes. Our full line-by-line breakdown of closing costs covers how each individual fee works, so this article can stay on what's specific to Maryland.
A note before you start: this is general education, not financial, legal, or tax advice. Every figure below is a statewide number from CalculatorByState's sourced dataset, and your county, lender, title company, attorney, and contract will all move the total. Maryland's recordation rates are set county by county, so the only rate that matters is the one where your deed gets recorded. Your Loan Estimate and Closing Disclosure are authoritative; use this to sanity-check them, not to replace them.
1. What closing costs actually run in Maryland
A 2-5% range against Maryland's $463,449 median sale price gives you roughly $9,269 to $23,172, with a midpoint around $16,221. On a $350,000 purchase, the same range is about $7,000 to $17,500.
That's a wide band, and in Maryland the width isn't vagueness. It's the county recordation rate doing most of the work, plus the attorney fee that comes standard here. Two buyers at the same price in different Maryland counties can be thousands apart on identical loans.
Closing costs sit on top of your down payment, not inside it. On a $463,449 purchase with 20% down you finance $370,759 and put down $92,690. Add the $16,221 midpoint and you need about $108,911 in cash to reach the table. That total is what surprises Maryland buyers, not the monthly payment.
See your all-in Maryland closing costs2. Two taxes on the same closing
Maryland's state transfer tax is $0.50 per $100 of consideration, or 0.5%, and it applies to the transfer of the deed. At the median price:
- State transfer tax at 0.5% on $463,449: $2,317
- Customarily split, so each side carries about: $1,159
The county recordation tax then applies on top, charged per $500 of the amount recorded. At 0.7% — a representative mid-range rate, and the actual rate in Anne Arundel and Allegany counties — recordation on a $370,759 loan is about $2,595, plus the $40 statewide surcharge.
Together those two taxes come to roughly $4,912 at the median, before any lender or title fee. That's the Maryland-specific part of your bill, and the part you can price exactly in advance with one phone call.
What you cannot do is assume 0.7%. Baltimore County is 0.5%, Prince George's 0.55%, Anne Arundel and Allegany 0.7%, Baltimore City 1.0% with a higher marginal rate above $1 million, and Montgomery County runs a tiered schedule reaching $11.35 per $500. Ask your title company or closing attorney for your county's current rate and confirm it against the county's fee schedule — rates get adjusted, and a stale number is an expensive surprise. Transfer taxes are usually the biggest swing between states, which is why transfer tax dominates any state-by-state comparison.
3. Recordation tax follows the loan, not just the sale
Recordation tax is imposed on the security instrument being recorded, not only on a purchase. It applies to new mortgages and deeds of trust, to HELOCs and other home equity liens, and to refinances — where the balance you're rolling over is exempt, but any "new money" above it is taxable at your county's rate.
So a rate-and-term refinance is cheap on the tax side and a cash-out refinance is not. Refinance a $370,759 balance into a $420,759 loan and the $50,000 of new money gets taxed: about $350 at 0.7%, about $700 at 1.4%. Small in isolation, but it belongs in the math when you're weighing a refinance at today's 6.65% on a 30-year fixed or 5.95% on a 15-year. The same applies to a HELOC, which is a recorded lien like any other.
4. Maryland closings run through an attorney
Maryland is an attorney state. Deeds, mortgages, and deeds of trust have to be prepared or certified by an attorney, so legal involvement isn't an optional add-on — it's built into how title transfers here. Three practical consequences:
- An attorney or settlement fee appears on your Loan Estimate as a matter of course. Not a red flag, not padding.
- You still choose who. Those fees aren't fixed by the state and quotes vary, so getting two or three is worth an hour.
- You get a document review by default — someone with legal training reading the deed and lien paperwork before you sign.
Title insurance is a separate line from that fee and works the same here as anywhere — here's what title insurance actually covers and who it protects.
5. Who pays what, and the first-time buyer break
By Maryland custom, the state transfer tax is split between buyer and seller, about $1,159 apiece on a $463,449 sale. Custom is a contract default, not a law. On a contested listing, offering to absorb the full transfer tax is a lever that costs the seller real money without touching the appraisal.
First-time Maryland buyers get a genuine break. If you qualify, the state transfer tax rate is cut in half, from 0.5% to 0.25%, and the seller customarily pays the full state transfer tax on that sale. At the median price 0.25% is $1,159, and if the seller carries it, your share is nothing. Confirm eligibility early — it moves your cash-to-close more than most fee negotiations will. The county recordation tax is separate and isn't covered by that reduction; who pays it is set by your contract, so read the clause rather than assuming.
Beyond the taxes, the picture is the same as everywhere: lender charges have room in them, services you select can be shopped, government fees and prepaids are fixed. Our guide to which closing fees you can push back on and which you can't sorts them.
6. How to lower the bill before you sign
- Get your county's recordation rate in writing before you make an offer. On a $370,759 loan that's the difference between roughly $1,854 and $5,191. Nothing else moves that much money.
- Check first-time buyer eligibility. The 0.25% state rate plus the seller-pays custom can take your state transfer tax share to zero.
- Quote the settlement attorney separately from the lender. Maryland requires the attorney; it doesn't set the fee.
- If you're refinancing, know what counts as new money. Only the amount above your existing balance is taxable.
- Compare your Loan Estimate to your Closing Disclosure line by line. Some figures may legally change and some may not; how to read a Loan Estimate and what the tolerances mean explains which is which.
And don't forget prepaids: funding your property tax and insurance escrow is real cash due at the table. See how escrow accounts get funded at closing.
Frequently asked questions
How much are closing costs in Maryland?
At the statewide median sale price of $463,449, a 2-5% range works out to roughly $9,269 to $23,172, midpoint near $16,221. On a $350,000 purchase it's about $7,000 to $17,500. Where you land depends heavily on your county's recordation rate.
What is Maryland's transfer tax rate?
The state transfer tax is 0.5% of the sale price, or $2,317 on a $463,449 home. That's only the state's piece — your county charges a separate recordation tax on top.
How much is Maryland's recordation tax?
There's no single statewide rate. Counties set their own and most fall between 0.5% and 1.4%, which on a $370,759 loan is about $1,854 to $5,191. A representative 0.7% rate produces about $2,595, plus a flat $40 statewide surcharge.
Does the buyer or the seller pay transfer tax in Maryland?
The state transfer tax is customarily split, about $1,159 each on a $463,449 sale. For qualifying first-time buyers the rate drops to 0.25% and the seller customarily pays all of it. The county recordation tax is negotiated separately in the contract, and practice varies by county.
Do I need an attorney to close on a house in Maryland?
Effectively yes. Maryland is an attorney state: deeds, mortgages, and deeds of trust must be prepared or certified by an attorney. Expect that fee on your Loan Estimate, and get more than one quote — the state requires the attorney, not any particular price.
Does Maryland charge recordation tax on a refinance or a HELOC?
Yes to both, but on a refinance only the new money is taxed; rolling over your existing unpaid principal balance is exempt. A HELOC or home equity loan creates a recorded lien, so the county rate applies to it too.
Are closing costs part of my down payment?
No, they're separate and both are due at closing. On a $463,449 Maryland home with 20% down you finance $370,759, bring $92,690 down, and add roughly $16,221 in closing costs — about $108,911 in cash. If that's a problem, start with ways to reduce what you bring to closing.
What to do next
Run your actual purchase price through Maryland's payment calculator, which folds in the state's property tax and insurance averages so you get a real all-in monthly figure rather than just principal and interest. Then work backward from the cash you have, using your county's confirmed recordation rate rather than a statewide guess.
- Maryland mortgage payment calculator
- Maryland affordability calculator
- Maryland first-time buyer calculator
- How to buy a home in Maryland
- First-time home buyer programs explained
Every figure on this site is sourced and dated, and you can see exactly where each one comes from on our methodology page.
The figures above are illustrations drawn from CalculatorByState's sourced dataset. They are statewide, not county-level quotes, and Maryland's recordation tax rates in particular are set independently by each county and Baltimore City. Your own costs depend on your jurisdiction, lender, title company, attorney, and contract. For advice specific to your situation, consult a licensed real estate professional, mortgage lender, or attorney in Maryland.