What is the standard Maryland state transfer tax rate applied to the consideration in a typical residential real estate transaction where the buyer is NOT a first-time homebuyer?
Correct Answer
B) 0.50% of the consideration
Under Md. Code Ann., Tax-Prop. § 13-203, the standard Maryland state transfer tax rate is 0.5% of the consideration (purchase price). This rate applies when the buyer does not qualify as a first-time homebuyer purchasing a principal residence.
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Related Topics & Key Terms
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Related Concepts
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
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