MD · #18 by population

Buying a home in Maryland

Costs and rules that are specific to Maryland. Main city: Baltimore.

In short

Maryland taxes property sales through its state transfer tax, does not require an attorney at closing and requires a seller disclosure form. It forecloses through the courts and is not a community property state.

Calculate for Maryland

If you buy

Maryland state transfer tax

State transfer tax (Tax-Property Article 13-203): 0.5% of consideration; 0.25% for a first-time Maryland buyer who will occupy the home. Change the price: the amount is recalculated instantly.

Price$436,300
State transfer tax$2,181.50
Share of the price0.5% of the price
Who paysShared by buyer and seller

Default price: the Maryland median value of owner-occupied homes, $436,300 (Census ACS 2024). Rule: 0.5% of the consideration, including any mortgage the buyer assumes. For a first-time Maryland buyer who will occupy the home the rate is 0.25%. Plus, in Baltimore City, a local transfer tax of 1.5% and a local recordation tax of $5.00 per $500 (fiscal year 2027, Maryland Department of Legislative Services); Baltimore City adds a yield tax above $1 million. Who pays: Anyone may pay by agreement. If the contract is silent, the law presumes seller and buyer share recordation and transfer taxes equally. When a first-time Maryland buyer will live in the home, the seller pays the entire state transfer tax and, unless the contract says otherwise, all recordation and local transfer tax. Not included: other county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Maryland transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Maryland state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Maryland in short

Is there a real estate transfer tax in Maryland?

Maryland imposes a 0.5% state transfer tax on the consideration for a deed, dropping to 0.25% for a first-time Maryland buyer who will live in the home. Counties and Baltimore City add local transfer taxes (Baltimore City 1.5%) and a separate recordation tax.

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How much is the state transfer tax on a $436,300 home in Maryland?

On $436,300, the median value of owner-occupied homes in Maryland (Census ACS 2024), the state state transfer tax comes to $2,181.50 (0.5% of consideration). County and city taxes are not included.

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What closing costs does Maryland law set?

Maryland has no official typical closing-cost total. The State transfer tax is 0.5% of the price, Baltimore City adds a 1.5% transfer tax and $5 per $500 recordation tax, and recording a residential instrument costs $60.

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How is property tax calculated in Maryland?

Maryland property tax is local with a small state rate: for 2026-27 Baltimore City charges $2.248 per $100 of assessed value plus the State's $0.112, or $2.360 in total.

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What is the deadline to appeal a property tax assessment in Maryland?

In Maryland, file your assessment appeal with the Department of Assessments and Taxation within 45 days of the notice date (60 days from the transfer if you bought between January 1 and June 30), then appeal to the Property Tax Assessment Appeals Board within 30 days of the final notice.

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Do you need a real estate attorney to close in Maryland?

No Maryland law read requires a buyer or seller to hire an attorney to close, but a deed cannot be recorded without a certification that an attorney or a party prepared it (Real Property 3-104(f)), and only licensed producers can conduct settlements.

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What must a home seller disclose in Maryland?

A Maryland seller of a home with four or fewer units must give the buyer either a disclosure statement or an as-is disclaimer statement, on the Real Estate Commission's form, on or before the contract (Real Property 10-702).

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How does foreclosure work in Maryland?

In Maryland the lender must send a notice of intent to foreclose at least 45 days before filing in court and cannot file until 90 days after the default, whichever is later. An owner-occupant can request mediation and can reinstate the loan until 1 business day before the sale.

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What first-time home buyer programs does Maryland offer?

In Maryland, the Maryland Mortgage Program (MMP), run by the state housing department (DHCD), pairs a 30-year fixed loan with a $6,000 deferred loan or one equal to 3% to 6% of the first mortgage.

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How much tax when you sell a home in Maryland?

The federal rule is the same in Maryland as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Maryland income tax on the gain is not computed here.

Capital gains on a home sale

Maryland guides

Baltimore

Buying a home in Baltimore, Maryland

Professionals in Maryland

All states · Federal guides