Disclaimer: Estimates based on Maryland's state transfer tax and, for Anne Arundel County, its verified county transfer and recordation tax structure. Other counties' local rates are not modeled here — verify directly.. Not legal, tax, or financial advice — confirm with a licensed closing attorney or your state/county recorder. Full Disclaimer →
Maryland · State + County Transfer Tax

Maryland Closing Costs: State Tax Everywhere, County Detail for Anne Arundel

Maryland's state transfer tax is a flat 0.5% everywhere. County transfer tax and recordation tax vary significantly by county — this calculator fully models Anne Arundel County's structure (including its own million-dollar cliff) and is explicit that other counties need their own verification.

Jurisdiction Data Card — Maryland Researched Aug 21, 2026
What changes here:County transfer/recordation tax varies by county — fully modeled for Anne Arundel only
Governing authority:Maryland Comptroller / County Clerk (Circuit Court)
Statutory basis:Md. Code, Tax-Property §13-203 (state); Anne Arundel County Code Art. 4
Calculator fields affected:State transfer tax, county transfer tax, county recordation tax

Only Anne Arundel County's local structure is fully modeled — other counties (including Montgomery) have their own rates not shown here. Excludes title insurance, escrow, and lender fees.

Total Maryland Transfer & Recordation Tax

Tax Breakdown

Worked Example: $1,500,000 Sale in Anne Arundel County

State transfer tax (0.5%)$7,500.00
County transfer tax (1.5% of entire price, cliff)$22,500.00
County recordation tax ($3.50/$500)$10,500.00
Total$40,500.00

This is a tax-module example, not a complete settlement statement — title, escrow, and lender charges are not included.

Why This Page Doesn't Cover Every County

Maryland's transfer tax landscape is genuinely fragmented — the 0.5% state tax is uniform, but each county sets its own transfer tax rate and recordation tax structure, and some (like Anne Arundel) add their own million-dollar cliff on top. Rather than presenting a fabricated calculation for Montgomery County or any other county whose numbers weren't independently verified in this research batch, this calculator fully models Anne Arundel County (where Manus's research included a verified worked example) and shows state-tax-only for every other county, with an explicit prompt to confirm local rates.

Understanding Closing Costs in Maryland

Closing costs are the fees and charges required to finalize a real estate purchase, separate from your down payment and the home's purchase price. Beyond the Maryland transfer tax and recording fee calculated above, a typical closing includes a handful of other charges: a loan origination fee charged by your lender, an appraisal fee to confirm the home's value, a home inspection fee, a title search and title insurance premium (a lender's policy is required by most lenders, and an owner's policy is optional but recommended), an escrow or settlement agent fee, and prepaid items such as homeowners insurance and the property tax and mortgage interest your lender collects upfront into escrow. Which of these apply, and how much each one costs, depends on your lender, your loan program, and the title or escrow company handling your closing — this calculator covers only the government-charged transfer tax and recording fee shown above, not the full closing cost picture.

What Affects Your Total Closing Costs

Several factors shape how much you'll actually pay at closing on a Maryland property, beyond the transfer tax and recording fee shown above. Loan type matters: FHA loans add an upfront mortgage insurance premium, VA loans add a funding fee (waived for some veterans and service members), and USDA loans add a guarantee fee, while conventional loans typically don't carry a comparable upfront charge. Property type matters too — condos and homes in planned communities often require an extra fee for HOA document review or a resale certificate, and multi-unit or investment properties can carry higher title insurance premiums than a standard single-family purchase. County and municipality matter as well: recording fees, and in some states local transfer taxes, can vary from county to county, so the figures on this page reflect the Maryland statutory default — always confirm with the specific county recorder's or clerk's office where you're closing. Finally, purchase price and loan amount drive costs that scale with value, including title insurance premiums, percentage-based origination fees, and the transfer tax calculated above.

Frequently Asked Questions

What is Maryland's state transfer tax rate?
0.5% of consideration statewide, under Md. Code, Tax-Property §13-203. Counties separately impose their own transfer tax and recordation tax, both of which vary by county.
How does Anne Arundel County's transfer tax work?
Anne Arundel charges a county transfer tax of 1.0% below $1,000,000, rising to 1.5% on the ENTIRE price for sales at or above $1,000,000 (a whole-value cliff), plus a recordation tax of $3.50 per $500.
How much is the total transfer tax on a $1,500,000 sale in Anne Arundel County?
$40,500.00 total — $7,500 state tax (0.5%) + $22,500 county transfer tax (1.5% of the entire price, the higher cliff tier) + $10,500 recordation tax ($3.50/$500).
Does this calculator cover every Maryland county?
No — only the state tax (applies everywhere) and Anne Arundel County's full local structure are modeled with verified figures. Other Maryland counties (including Montgomery County) have their own distinct rates that were not independently verified with a worked example in this research batch, so this calculator shows state tax only for other counties and directs you to confirm local rates.
Who typically pays closing costs in Maryland?
Closing cost responsibility is set mainly by the purchase agreement rather than a fixed state formula in most cases. Buyers typically pay their own loan-related fees — origination, appraisal, and the lender's title insurance policy — while sellers commonly pay the real estate commission and, in many markets, the owner's title insurance policy. Local custom varies, so ask your real estate agent how closing costs are typically split where you're buying in Maryland.
Can closing costs be negotiated?
Yes. Many closing cost line items are negotiable between buyer and seller as part of the purchase offer, and lender fees can often be shopped and negotiated between lenders. It's common for buyers to request a seller credit toward closing costs, particularly when a market favors buyers.
Are closing costs tax-deductible?
Some are, some aren't, and the rules differ for a primary residence versus a rental or investment property. Loan origination points paid to reduce your interest rate are often deductible in the year you pay them; costs like title insurance, appraisal fees, and recording fees typically aren't deductible but can usually be added to your home's cost basis. This is general information, not tax advice — a CPA can confirm what applies to your specific purchase.
Does this calculator include lender fees or title insurance?
No. This calculator isolates the government-charged transfer tax and deed-recording fee for Maryland shown in the sources above — it does not include lender origination fees, appraisal costs, title insurance premiums, escrow fees, or prepaid items. Those vary by lender and title company and should be confirmed on your Loan Estimate and Closing Disclosure.
Methodology & sources: Researched via Manus AI primary-source research (task MMb7mqFkwGV27iWSTxreJU). Statutory basis: Md. Code, Tax-Property §13-203; Anne Arundel County Code Art. 4. Only Anne Arundel County's local structure is verified and modeled — other counties deliberately not fabricated. Last verified August 21, 2026. Always confirm your county's exact rates with your closing attorney or county finance office. Spotted an error? Contact us.