This page explains Maryland transfer tax and recordation tax in plain English.
Maryland deed recording can feel expensive and confusing because more than one tax may apply. A quitclaim deed may involve state transfer tax, county transfer tax, recordation tax, recording fees, and sometimes other review requirements.
Important Maryland Cost Note:
Maryland state transfer tax is commonly 0.5% of the consideration.
Example: if state transfer tax applies to a $100,000 taxable transfer, the state transfer tax alone would generally be about $500.
Maryland recordation tax is separate and varies by county or Baltimore City. County transfer tax may also apply depending on the county.
In plain English, the final amount is usually based on the consideration or value shown for the transfer, the county where the property is located, and whether an exemption or reduced rate applies.
Do not assume one tax estimate covers everything. Maryland deed recordings often require tax review before recording.
What Taxes Can Apply to a Maryland Deed?
Maryland deed recording may involve several separate charges.
- State Transfer Tax: a Maryland state tax commonly based on consideration.
- County Transfer Tax: a local transfer tax imposed by some Maryland counties and Baltimore City.
- Recordation Tax: a tax connected with recording certain instruments in Maryland Land Records.
- Recording Fees: separate clerk recording charges for filing the deed.
- Local Review Charges: county finance, tax, or surcharge items that may apply locally.
This is why the recording cost may be higher than a visitor expects after looking only at the state transfer tax.
How Maryland State Transfer Tax Is Calculated
Maryland state transfer tax is commonly 0.5% of the consideration for deeds and other instruments transferring real property.
Certain first-time Maryland homebuyers may qualify for a reduced state transfer tax rate of 0.25%.
Examples using the common 0.5% state transfer tax rate:
- $50,000 taxable consideration = about $250 state transfer tax
- $100,000 taxable consideration = about $500 state transfer tax
- $250,000 taxable consideration = about $1,250 state transfer tax
- $500,000 taxable consideration = about $2,500 state transfer tax
Recordation Tax Is Separate
Recordation tax is not the same thing as transfer tax.
Maryland recordation tax rates vary by county and Baltimore City. The tax may apply to deeds and other instruments recorded in land records.
Some counties state the rate as a dollar amount per $500 or $1,000 of consideration. Others present it in county-specific fee schedules.
Because the rate is local, the best practical source is the county recording office, finance office, or clerk’s recording fee page for the county where the property is located.
County Transfer Tax Can Also Apply
Some Maryland counties and Baltimore City impose a local transfer tax in addition to the state transfer tax.
County transfer tax rates vary. For example, Anne Arundel County publishes a county transfer tax rate of 1.0% for transactions up to $999,999.99, and a higher rate for transactions of $1,000,000 or more.
Other counties may use different rates, exemptions, or local credits.
How Is the Taxable Amount Decided?
For a normal sale, the taxable amount is usually based on the actual consideration paid or to be paid for the property.
Consideration may include more than cash. In some situations, it can include assumed debt or other value connected with the transfer.
For a gift, family transfer, no-money transfer, or unusual quitclaim deed, the county finance office or recording office may review the intake sheet, deed language, and exemption claim to decide how the transaction should be handled.
Important:
Do not guess at the taxable value or exemption treatment if the transfer is not a normal sale. Maryland county review procedures can vary.
Official Maryland Tax Sources
Maryland tax rules are spread across state law, court/recording instructions, and county finance pages.
Common Maryland Tax Exemption Situations
Some Maryland transfers may qualify for exemptions from certain transfer or recordation taxes.
Common situations may include:
- certain transfers between close family members
- certain divorce-related transfers
- some deeds that correct, confirm, or supplement a previously recorded deed
- certain transfers involving government agencies
- certain trust, estate, or fiduciary transfers
- some corporate, entity, or reorganization transfers
- first-time Maryland homebuyer reduced state transfer tax treatment
The exemption must match the actual transfer. A family transfer or gift is not automatically exempt from every Maryland tax.
First-Time Maryland Homebuyer Note
Maryland provides reduced state transfer tax treatment for certain first-time Maryland homebuyers.
The state transfer tax rate may be reduced from 0.5% to 0.25% when the transaction qualifies.
This is usually more relevant to purchase transactions than ordinary quitclaim deed family transfers, but it is important because many Maryland recording fee pages mention it.
How the Land Instrument Intake Sheet Fits In
Maryland's Land Instrument Intake Sheet helps the clerk, tax office, finance office, and assessment offices review the transfer.
The intake sheet is where the transfer type, consideration, tax information, and exemption information are often organized for recording review.
If the intake sheet and deed do not match, recording may be delayed.
Common Maryland Tax Mistakes
- Assuming state transfer tax is the only cost
- Forgetting that recordation tax is separate
- Forgetting county transfer tax where it applies
- Using the wrong county tax rate
- Assuming every family transfer is exempt
- Claiming an exemption without matching the actual transfer
- Failing to complete the intake sheet tax sections correctly
- Confusing transfer tax, recordation tax, recording fees, and withholding
- Submitting the deed before county finance review is complete
How This Fits Into the Maryland Quitclaim Deed Process
When preparing a Maryland quitclaim deed, review the tax issue before recording.
The deed, intake sheet, consideration amount, exemption claim, transfer tax, recordation tax, county transfer tax, and recording fees should all be consistent.
Return to the main Maryland Quitclaim Deed Instructions page for the complete step-by-step guide.
Maryland Transfer and Recordation Tax FAQ
How much is Maryland state transfer tax?
Maryland state transfer tax is commonly 0.5% of consideration. Certain first-time Maryland homebuyers may qualify for a reduced 0.25% state transfer tax rate.
Is recordation tax the same as transfer tax?
No. Recordation tax and transfer tax are separate. Maryland deed recordings may involve both.
Do Maryland tax rates vary by county?
Yes. Recordation tax and county transfer tax rates can vary by county or Baltimore City.
Are family transfers automatically exempt?
No. Some family transfers may qualify for exemptions, but the exemption must match the actual transfer and county review requirements.
Is this legal advice?
No. This page provides general educational information and is not legal advice.