Closing costs in Maryland: the real number.
Maryland has some of the highest closing costs in the country, and most online calculators underestimate them. Here's the itemized breakdown for buyers, with a worked example on a $400,000 purchase.
In this guide
1. The headline number
For Maryland buyers, total closing costs typically land between 2% and 4% of the purchase price [1]. On the statewide median sale price near $410,000, that's roughly $8,200 to $16,400 on top of your down payment [1]. Several Maryland counties charge above-average transfer and recordation taxes, which is the main reason MD trends higher than national averages.
2. State + county transfer tax
Maryland's state transfer tax is 0.5% of the sale price [1][2]. On top of that, most counties charge their own local transfer tax — typically ranging from 0% to 1.5% of the sale price depending on jurisdiction.
By Maryland custom, transfer taxes are typically split 50/50 between buyer and seller unless the contract specifies otherwise [2]. So the line-item on your settlement statement is usually half the headline rate.
3. Recordation tax
Recordation tax is a separate, per-document fee charged by the county for recording the deed and any new mortgage. It's stated in dollars per $500 of consideration. Across Maryland, recordation rates range from $3.30 to $7.00 per $500 of price [2].
The outlier is Montgomery County, which uses a progressive tiered recordation tax structure that ranges from $4.45 to $25.73 per $500 depending on the price bracket [2]. If you're buying in Montgomery, run the numbers carefully — the upper tier triggers on higher-priced homes and can add tens of thousands.
| County (example) | Recordation per $500 | On $400K purchase |
|---|---|---|
| Anne Arundel | $3.50 | ~$2,800 |
| Baltimore City | $5.00 | ~$4,000 |
| Baltimore County | $2.50 | ~$2,000 |
| Montgomery (tiered) | $4.45 – $25.73 | varies steeply |
| Prince George's | $5.50 | ~$4,400 |
Verify before you write your check. County rates change with local budgets; the figures above are illustrative and should be confirmed with the title company or county clerk for your specific transaction.
4. The first-time buyer exemption
If you qualify as a Maryland first-time homebuyer, the state exempts the first $500,000 of the purchase price from the state transfer tax [1]. That's a savings of up to $2,500. The same status can also reduce some county-level fees in certain jurisdictions; ask your title company to confirm what applies in your county.
5. Title, lender, and third-party fees
Beyond the tax stack, expect these line items on a typical Maryland purchase:
- Title insurance (owner's policy): usually 0.5–0.6% of the purchase price, paid once at closing. An "enhanced" owner's policy costs ~20% more but covers more risks.
- Title insurance (lender's policy): required by your lender; smaller, also paid at closing.
- Title settlement / escrow fee: $400–$1,200 for the settlement company.
- Lender fees: origination, underwriting, processing — varies by lender; ask for the Loan Estimate.
- Appraisal: $500–$800, often paid up front when the loan is ordered.
- Inspection: $400–$600, paid directly to the inspector before settlement.
- Survey: $300–$500 if required.
- Prepaids: first year of homeowners insurance + property tax escrow + per-diem interest. Often 1–2% of the purchase price on its own.
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Buyer financing 80% conventional, not a first-time buyer.
| Line item | Amount |
|---|---|
| State transfer tax (0.5% ÷ 2 split) | $1,000 |
| Anne Arundel local transfer tax (1.0% ÷ 2 split) | $2,000 |
| Recordation tax (~$3.50 / $500, buyer pays full) | ~$2,800 |
| Owner's title insurance (~0.55%) | ~$2,200 |
| Lender's title insurance + endorsements | ~$500 |
| Settlement / escrow fee | ~$800 |
| Lender fees (origination + underwriting + processing) | ~$1,800 |
| Appraisal | ~$600 |
| Prepaids (insurance, taxes, interest) | ~$3,500 |
| Total estimated buyer costs | ~$15,200 |
That's roughly 3.8% of the purchase price, on top of the $80,000 down payment. If the same buyer qualified as first-time, they'd save the $1,000 state transfer line entirely.
7. What you can actually negotiate
- Seller concessions toward closing costs. Especially in a slower micro-market, asking the seller to credit 1–3% of the price toward your closing costs is standard. Loan products cap how much you can accept (3–6% depending on loan type and down payment).
- Title company choice. You have the right to choose your title/settlement company. Get two or three quotes — fees can vary by $500+ for the same work.
- Lender comparison. Origination and underwriting fees vary widely. Get Loan Estimates from at least three lenders.
You generally cannot negotiate the tax stack — state and county transfer + recordation are fixed by jurisdiction. The math on those is the math on those.
Sources
- "MD Closing Costs 2026: Transfer Tax & Fee Breakdown" — Doss Title — https://askdoss.com/how-much-are-closing-costs-in-maryland-in-2026/ (accessed 2026-06-15)
- "Maryland Real Estate Transfer Taxes: In-Depth Guide (2026 Update)" — Clever Real Estate — https://listwithclever.com/real-estate-blog/maryland-transfer-taxes-an-in-depth-guide/ (accessed 2026-06-15)
- "MD Transfer Tax 2026: County Rates & First-Time Exemptions" — Doss Title — https://askdoss.com/maryland-transfer-tax-explained-state-county-and-recordation-taxes/ (accessed 2026-06-15)
- "Understanding Maryland's Transfer Tax: A Quick Guide" — HomeLight — https://www.homelight.com/blog/maryland-transfer-tax/ (accessed 2026-06-15)
Tax rates and program rules change with local budgets and legislation. The figures above are illustrative as of the source dates and should be verified for your specific transaction with the county clerk, your title company, or your lender. This guide is general information for Maryland real estate consumers and is not legal, tax, or financial advice. Evan Kundrat is a Maryland-licensed real estate salesperson (Lic. #5003434) at Keller Williams Flagship of Maryland (Designated Broker: Barry Hess, Lic. #517943). Equal Housing Opportunity.