Closing Costs in Maryland: Recordation + Transfer Tax

Maryland has high closing costs (3-4% of home price) — among the top 10 in the US. The state recordation tax + transfer tax + first-time buyer credits combine in complex ways, but most buyers face roughly 1.5% in state-related taxes. Property tax effective rate is moderate (1.09%).

Use the calculator below — your state has already been selected. Adjust the home price, down payment, and loan type for an estimate calibrated to Maryland.

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Estimates only — your actual closing costs depend on lender, property, locality, and the specifics of your transaction. Not financial advice. Verify all figures with a licensed lender or attorney. See our methodology below.

MD closing cost structure

1. Recordation tax

Maryland recordation tax varies by county: $3-$12 per $1,000 of mortgage amount. Typically split 50/50 buyer/seller in standard transactions.

2. State transfer tax

0.5% of home value, typically split 50/50. First-time buyers get a 50% reduction on their share.

3. County transfer tax

Varies by county: 0-1.5% additional. Montgomery County has high local rates; rural counties have none.

4. Title insurance and settlement

MD title insurance is competitive — combined premium ~0.55%.

How to reduce MD closing costs

  1. First-time buyer credit reduces your transfer tax share by 50%.
  2. Verify the county transfer tax rate — Montgomery, Howard, and PG counties have higher local rates.
  3. Shop title insurance and settlement.
  4. Get three Loan Estimates.
  5. Watch HOA fees in Bethesda and Columbia condos.

Frequently asked questions (Maryland)

Does MD give first-time buyers a tax break?

Yes. First-time buyers in MD pay 50% of the standard state transfer tax. The exemption is automatic if you certify first-time status.

Who pays the MD recordation tax?

By convention, the recordation tax (varies by county, $3-$12 per $1,000) is split 50/50 between buyer and seller. It's based on the mortgage amount, not home price.

Does Maryland require an attorney?

No. Maryland uses settlement company / title agent model. Most buyers don't hire a separate attorney.

Closing costs on a $500K Maryland home?

Approximately $14,000-$19,000 for the buyer. Recordation + transfer tax (~$3,500), title insurance ($2,750), prepaid escrows ($1,800), lender fees ($3,750).

About these estimates

The calculator above uses Maryland state averages for transfer taxes, recording fees, title insurance, attorney requirements, and property tax rates — sourced from the Maryland Department of Revenue, the 2024 ClosingCorp survey, the Tax Foundation 2024 property tax rankings, and state-specific regulatory tariffs. Real closing costs depend on your specific lender, the property, and the county-level rules where you're buying. For a sanity check on the calculator's output, request a Loan Estimate from your lender (federal law requires one within 3 business days of mortgage application).

Related

Reviewed by the CalcCottage editorial team. Updated May 14, 2026. Estimates only — not financial advice.

Closing costs in other states