closing
Maryland State Transfer Tax and First-Time Buyer Rate
Maryland's state transfer tax under Tax-Property §13-203 is 0.5% of the consideration, which includes any mortgage the buyer assumes. For a sale of improved residential property to a first-time Maryland homebuyer who will occupy it as a principal residence, the rate drops to 0.25% and the seller pays the entire tax. A first-time Maryland homebuyer has never owned Maryland residential property as a principal residence; owning a home in another state does not disqualify. County transfer and recordation taxes are additional.
- Exam tip
- In the first-time buyer case, the seller pays all of the 0.25% state tax; otherwise, who pays is set by contract and local custom.
- Example
- On a $480,000 sale to a qualifying first-time buyer, the state transfer tax is $480,000 x 0.0025 = $1,200, all paid by the seller.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23