Closing costs by state
Closing costs in Maryland
Closing costs in Maryland run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $12,555. Maryland charges a state transfer tax of 0.5% of consideration (state transfer tax, Tax-Property § 13-203); 0.25% on a home sold to a first-time Maryland buyer, paid entirely by the seller, about 0.5% of the price, and it is customarily split between buyer and seller. County transfer taxes on top: Baltimore City 1.5% (2.1% over $1 million), Baltimore County 1.5%, Prince George's 1.4%, Howard 1.25%, Montgomery 1%, Anne Arundel 1% (1.5% from $1 million). Every county also levies a recordation tax on deeds at its own rate.
Last verified ·Sources:mgaleg.maryland.gov·mgaleg.maryland.gov·gfrlaw.com
The rules
What Maryland does differently
- State transfer tax
- 0.5% of consideration (state transfer tax, Tax-Property § 13-203); 0.25% on a home sold to a first-time Maryland buyer, paid entirely by the seller (about 0.5% of the price at $400,000).
- Who pays it
- Split between buyer and seller.
- County and city add-ons
- County transfer taxes on top: Baltimore City 1.5% (2.1% over $1 million), Baltimore County 1.5%, Prince George's 1.4%, Howard 1.25%, Montgomery 1%, Anne Arundel 1% (1.5% from $1 million). Every county also levies a recordation tax on deeds at its own rate.
- Attorney at closing
- Maryland does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Owner’s title policy
- The buyer customarily pays for the owner’s title insurance policy in Maryland, along with the lender’s policy.
- Notes
- Real Property § 14-104 presumes an equal split of state and local transfer and recordation taxes unless the contract says otherwise; for a first-time Maryland buyer the seller pays the whole state transfer tax. $1,000 each side on a $400,000 sale before county taxes. Title companies conduct closings.
- mgaleg.maryland.gov — “the rate of the transfer tax is 0.5% of the consideration payable for the instrument of writing.”
- mgaleg.maryland.gov — “any State or local transfer tax shall be shared equally between the grantor and grantee”
- gfrlaw.com — “Baltimore City: 1.5% or 2.1% if transaction exceeds $1MM; Prince George's County: 1.4%; Howard County: 1.25%”
Worked example
A $400,000 home in Maryland, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow Maryland’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Owner’s title policy (estimate) | $1,500 |
| Transfer tax, buyer’s share (0.25%) | $1,000 |
| Total (3.139% of price) | $12,555 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.25%) | $1,000 |
| Total | $24,500 |
Questions
What people ask about Maryland
- Who pays the transfer tax in Maryland?
- Maryland charges a state transfer tax of 0.5% of consideration (state transfer tax, Tax-Property § 13-203); 0.25% on a home sold to a first-time Maryland buyer, paid entirely by the seller, about 0.5% of the price, and it is customarily split between buyer and seller. County transfer taxes on top: Baltimore City 1.5% (2.1% over $1 million), Baltimore County 1.5%, Prince George's 1.4%, Howard 1.25%, Montgomery 1%, Anne Arundel 1% (1.5% from $1 million). Every county also levies a recordation tax on deeds at its own rate.
- Do you need an attorney to close on a house in Maryland?
- Maryland does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Who pays for the owner’s title policy in Maryland?
- The buyer customarily pays for the owner’s title insurance policy in Maryland, along with the lender’s policy.
- How much are seller closing costs in Maryland?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $24,500 for the seller, including $1,000 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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