Closing Costs in Maryland: What Buyers and Sellers Actually Pay

Ask five people what closing costs actually are in Maryland and you’ll usually get five different, slightly-wrong answers — partly because the biggest piece, transfer and recordation tax, varies by county, and partly because a lot of what’s online is outdated. Here’s what buyers and sellers in Howard County and the rest of central Maryland actually pay.

Maryland’s State Transfer and Recordation Tax

Every Maryland deed is subject to a state transfer tax of 0.5% of the sale price, plus a state recordation tax, typically charged at $5.00 per $1,000 of the sale price (about 0.5%) in Howard County.¹ Together, that’s roughly 1% of the purchase price before any county-level tax is added.

There’s a meaningful exception: qualifying first-time Maryland home buyers get the state transfer tax rate cut in half, to 0.25%, on their primary residence.¹ If you haven’t owned a home in Maryland before, this is worth confirming you actually qualify for before you finalize your closing cost estimate — see our guide to first-time home buyer programs in Howard County for the other assistance this often pairs with.

County Transfer Tax Varies — a Lot

On top of the state-level taxes above, Maryland counties each set their own local transfer tax, and the differences are bigger than most people expect:

• Howard County: 1.25% county transfer tax²
• Anne Arundel County: 1.0%–1.5% county transfer tax, depending on the transaction³
• Montgomery County: approximately 1% county transfer tax, with a tiered state recordation tax ($6.90 per $1,000 up to $500,000, then $10 per $1,000 above that)⁴
• Baltimore County: 1.5% county transfer tax, with state recordation tax at $5 per $1,000⁵

Put together for a typical Howard County purchase: 1.25% county transfer tax + 0.5% state transfer tax + 0.5% state recordation tax works out to roughly 2.25% of the sale price in transfer and recordation taxes alone, before lender fees, title costs, or anything else.^1,2 On a $637,865 home — Howard County’s median sale price as of August 2026⁶ — that’s approximately $14,350.

Who Actually Pays These Taxes?

In Maryland, transfer and recordation taxes are customarily split between buyer and seller, though the exact split is negotiable and gets written into the contract — it’s not fixed by law the way the tax rate itself is. This is one of the specific line items worth discussing with your agent before you write or accept an offer, since it directly affects your net proceeds as a seller or your cash-to-close as a buyer.

Other Closing Costs to Budget For

• Title insurance and settlement fees — protects against title defects and covers the title company’s work; varies by purchase price and provider.
• Lender fees — origination fees, appraisal, credit report, and underwriting fees if you’re financing.
• Home inspection — typically $300–$650, with radon and termite testing as common add-ons — see our full guide to what to expect from a Maryland home inspection.
• Prepaid items — property tax and homeowners insurance escrow, prorated based on your closing date.
• HOA or condo fees, if applicable, often prorated at closing.

Why These Numbers Are Worth Getting Right Before You’re Under Contract

Transfer tax differences between counties are real money — the gap between Howard County’s 1.25% and Montgomery County’s roughly 1% county rate adds up fast on a $600,000+ home. If you’re comparing counties as part of your search, it’s worth factoring into your decision alongside price and schools — see our comparison of Howard, Anne Arundel, and Montgomery county home prices for how the markets themselves stack up.

Frequently Asked Questions

How much are closing costs in Maryland?

Transfer and recordation taxes alone typically run about 2–2.5% of the sale price in Howard County, depending on the exact county-level rate, plus title fees, lender fees, and prepaid items. The total varies by county and by transaction.

Is Howard County’s transfer tax higher than neighboring counties?

Howard County’s 1.25% county transfer tax is higher than Montgomery County’s roughly 1%, similar to the lower end of Anne Arundel County’s 1.0%–1.5% range, and lower than Baltimore County’s 1.5%.

Do first-time buyers get a break on Maryland transfer tax?

Yes — qualifying first-time Maryland home buyers get the state transfer tax rate reduced from 0.5% to 0.25% on their primary residence.

Who pays closing costs, the buyer or the seller?

Transfer and recordation taxes are customarily split between buyer and seller in Maryland, but the exact split is negotiated and written into the purchase contract rather than fixed by law.

Working through what you’ll actually owe at closing? Schedule a consultation with Ryan or Rebeca — we’ll walk through the real numbers for your specific county and price point.

Sources:
1. Gordon Feinblatt LLC, Maryland Real Property Transfer and Recordation Tax Rates — accessed October 2026
2. Capitol Title, Maryland Transfer Tax Rates by County
3. Capitol Title, Maryland Transfer Tax Rates by County
4. Gordon Feinblatt LLC, Maryland Real Property Transfer and Recordation Tax Rates
5. Gordon Feinblatt LLC, Maryland Real Property Transfer and Recordation Tax Rates
6. Redfin, Howard County, MD Housing Market — August 2026 data