Real Estate Settlement Services in MD, VA & DC


Transfer & Recordation Taxes in MD, VA, & DC

 

 

The rates, tax information, and county exemptions are current as of: May 28, 2010

 

 

Jump to:  Maryland  |  Virginia  |  Washington, DC

 

 

 

 

Maryland Real Estate Tax Information

 

 

Tax Information for Purchases in Maryland

In Maryland, each county has it's own fees for what transfer and recordation taxes it charges on a home purchase. In most cases, the greater of the purchase price or total loan amount is considered taxable. The following taxes are typically charged when purchasing real estate in the state of Maryland:

  1. State Transfer Tax:  All counties in Maryland collect a 0.50% tax, unless the buyer(s) is a first time homebuyer.
  2. County Transfer Tax:  Each Maryland county determines this tax rate and the amount varies by county. Not all Maryland counties charge a County Transfer Tax. [view rates by county]
  3. State Recordation Tax:  The taxable amount is calculated per $500, rounded up to the next $500, and the tax rate varies by county. [view rates by county]

 

Some things to know about real estate transactions in the state of Maryland:

 

Exemptions:  Some counties offer exemptions if certain conditions are met. These discounts typically apply if the property will be occupied as a principal residence, but not always. Our GFE Calculators include these exemptions and are accurate as of the date listed above.

 

First Time Homebuyer(s):  The Purchaser is exempt from paying State Transfer Tax. The Seller is required to pay a State Transfer Tax of 0.25%. To qualify, the Purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase and ALL buyers must be first-time homebuyers.

 

Freddie Mac REO Outsale Purchases:  If purchasing a Freddie Mac property, the Purchaser will pay the entire Seller's portion of taxes (including First Time Homebuyers). Freddie Mac will not pay taxes on these types of transactions. Our GFE Calculators include this scenario.

 

Who Pays the Taxes?:  Maryland state law dictates that transfer and recordation taxes are split equally between the Purchaser and Seller, unless otherwise provided in the contract. If the contract states that the Purchaser bears the burden of taxes and in the case of a First Time Homebuyer, the County Transfer Tax and State Recordation Tax may be assumed by the Purchaser, but the Purchaser shall pay no State Transfer Tax and the Seller shall bear the burden of the 0.25% State Transfer Tax (excluding Fannie Mae REO Outsale purchases).

 

 

Tax Information for Refinances in Maryland

Only the State Recordation Tax is charged on a refinance. The Borrower's principal residence status determines the taxable amount:

  1. If the property is the Borrower's principal residence, any "new money" (the difference between the new loan amount and the portion being paid off) is taxed.
  2. If the property is not the Borrower's principal residence, the entire loan amount is taxed.

 

 

Maryland Transfer & Recordation Taxes by County

 

 

Allegany County

 

County Transfer Tax:  0.50%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.25 per $500

 

Allegany County Tax Exemption:

The first $30,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Anne Arundel County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.50 per $500

 

 

 

Baltimore City

 

County Transfer Tax:  1.50%

State Transfer Tax:  0.50%

State Recordation Tax:  $5.00 per $500

 

Baltimore City Tax Exemption:

The first $22,000 used to calculate the State Recordation Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Baltimore County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $2.50 per $500

 

Baltimore County Tax Exemption:

The first $22,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Calvert County

 

County Transfer Tax:  0.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $5.00 per $500

 

 

 

Caroline County

 

County Transfer Tax:  0.50%

State Transfer Tax:  0.50%

State Recordation Tax:  $5.00 per $500

 

Caroline County Tax Exemption:

The first $25,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence. If the property is the Purchaser's principal residence AND the Purchaser is a First Time Homebuyer, the first $75,000 used to calculate the County Transfer Tax is exempt!

Our GFE Calculators include both of these exemptions!


 

 

 

 

Carroll County

 

County Transfer Tax:  0.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $5.00 per $500

 

 

 

Cecil County

 

County Transfer Tax:  0.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $4.10 per $500

 

Please Note: Cecil County collects a $10 flat fee in place of the County Transfer Tax.

 

 

 

Charles County

 

County Transfer Tax:  0.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $5.00 per $500

 

 

 

Dorchester County

 

County Transfer Tax:  0.75%

State Transfer Tax:  0.50%

State Recordation Tax:  $5.00 per $500

 

Dorchester County Tax Exemption:

The first $30,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Frederick County

 

County Transfer Tax:  0.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $6.00 per $500

 

 

 

Garrett County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.50 per $500

 

Garrett County Tax Exemption:

The first $50,000 used to calculate the County Transfer Tax is ALWAYS exempt!

Our GFE Calculators include this exemption!


 

 

 

 

 

Hartford County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.30 per $500

 

Hartford County Tax Exemption:

The first $30,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Howard County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $2.50 per $500

 

 

 

Kent County

 

County Transfer Tax:  0.50%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.30 per $500

 

 

 

Montgomery County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.45 per $500 for all amounts up to $500k, $5.00 per $500 for all amounts exceeding $500k

 

Montgomery County Tax Exemption:

The first $50,000 used to calculate the State Recordation Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Prince George's County

 

County Transfer Tax:  1.40%

State Transfer Tax:  0.50%

State Recordation Tax:  $2.50 per $500

 

 

 

Queen Anne's County

 

County Transfer Tax:  0.50%

State Transfer Tax:  0.50%

State Recordation Tax:  $4.95 per $500

 

 

 

St. Mary's County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $4.00 per $500

 

St. Mary's County Tax Exemption:

The first $30,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Somerset County

 

County Transfer Tax:  0.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.30 per $500

 

 

 

Talbot County

 

County Transfer Tax:  1.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.30 per $500

 

Talbot County Tax Exemption:

The first $50,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Washington County

 

County Transfer Tax:  0.50%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.80 per $500

 

Washington County Tax Exemption:

The first $50,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence! If the property is the Purchaser's principal residence AND the Purchaser is a First Time Homebuyer, the first $50,000 used to calculate the County Transfer Tax is exempt and the County Transfer tax rate is only 0.25%!

Our GFE Calculators include both of these exemptions!


 

 

 

 

Wicomico County

 

County Transfer Tax:  0.00%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.50 per $500

 

 

 

Worcester County

 

County Transfer Tax:  0.50%

State Transfer Tax:  0.50%

State Recordation Tax:  $3.30 per $500

 

Worcester County Tax Exemption:

The first $50,000 used to calculate the County Transfer Tax is exempt if the property is the Purchaser's principal residence!

Our GFE Calculators include this exemption!


 

 

 

 

Virginia Real Estate Tax Information

 

 

Tax Information for Purchases in Virginia

In Virginia, the greater of the purchase price or assessed value is considered taxable. The following taxes are typically charged when purchasing real estate:

  1. Deed Tax:  The Purchaser is taxed upon the transfer of property. County & State rates apply and are charged per $100, rounded up to the next $100. [see rates below]
  2. Trust Tax:  The Purchaser is taxed when a loan applies to a transaction. County & State rates apply and are charged per $100, rounded up to the next $100. [see rates below]
  3. Grantor Tax:  The Seller is taxed per $500, rounded up to the next $500, of the taxable amount.

 

Some things to know about real estate transactions in the Commonwealth of Virginia:

 

Assessed Value vs. Purchase Price:  By law, Virginia requires the Deed and Grantor Tax to be based on either the purchase price or the assessed value of the property, whichever is greater. Our GFE Calculators will determine the applicable tax for you.

 

Freddie Mac REO Outsale Purchases:  If purchasing a Freddie Mac property, the Purchaser will pay the Seller's Grantor Tax. Freddie Mac will not pay taxes on these types of transactions.

 

Who Pays the Taxes:  The Purchaser pays both the County and State portions of the Deed & Trust Taxes (also known as transfer and recordation taxes). The Seller pays the Grantor tax.

 

 

Tax Information for Refinances in Virginia

Only the County and State portions of the Trust Tax (also known as recordation tax) are charged on a refinance.

 

 

Virginia Transfer & Recordation Taxes

 

 

Deed Tax

 

County Tax:  $0.0833 per $100 of the purchse price or assessed value, whichever is greater, rounded up to the next $100.

State Tax:  $0.25 per $100 of the purchse price or assessed value, whichever is greater, rounded up to the next $100.

 

 

Trust Tax

 

County Tax:  $0.0833 per $100 of the purchse price or assessed value, whichever is greater, rounded up to the next $100.

State Tax:  $0.25 per $100 of the purchse price or assessed value, whichever is greater, rounded up to the next $100.

 

 

Grantor Tax

 

$0.50 per $500 of the purchse price or assessed value, whichever is greater, rounded up to the next $500.

 

 

 

Washington, DC Real Estate Tax Information

 

 

Tax Information for Purchases in Washington, DC

In DC, the greater of the purchase price or assessed value is considered taxable. The following taxes are typically charged when purchasing real estate:

  1. Deed Transfer Tax:  The Seller is typically taxed upon the transfer of property. [see rates below]
  2. Deed Recordation Tax:  The Purchaser is typically taxed upon the transfer of property. [see rates below]

 

Some things to know about real estate transactions in the District of Columbia:

 

Assessed Value vs. Purchase Price:  DC requires the Deed Transfer and Deed Recordation Taxes to be based on either the purchase price or the fair market value (assessed value) of the property, whichever is greater. Our calculator will determine the applicable tax for you. Our GFE Calculators will determine the applicable tax for you.

 

Freddie Mac REO Outsale Purchases:  If purchasing a Freddie Mac property, the Purchaser will pay the Seller's Grantor Tax. Freddie Mac will not pay taxes on these types of transactions.

 

Who Pays the Taxes:  The Seller typically pays the Deed Transfer Tax and the Purchaser pays the Deed Recordation Tax, unless provided otherwise in the contract.

 

 

Tax Information for Refinances in the District of Columbia

Most refinances are exempt from taxation if a property is taxed as a Class 1 or Class 2 property and no construction financing is involved. If the refinance does not meet these requirements, the Deed Transfer and Deed Recordation Taxes will apply. For more information on DC Tax Classes, please visit: http://cfo.dc.gov/cfo/cwp/view,a,1324,q,612006.asp.

 

 

Washington, DC Transfer & Recordation Taxes

 

 

Deed Transfer Tax

 

For transaction under $400,000:  1.10% of consideration or fair market value.

For transaction over $400,000:  1.45% of consideration or fair market value.

 

 

Deed Recordation Tax

 

For transaction under $400,000:  1.10% of consideration or fair market value.

For transaction over $400,000:  1.45% of consideration or fair market value.