A plain-English breakdown of every closing cost in Maryland for buyers and sellers in 2026. Includes Montgomery County and Prince George's County rates, real dollar examples, and what's negotiable.
Maryland closing costs have a reputation for being complicated — and honestly, it's earned. Between state transfer taxes, county recordation taxes that vary by jurisdiction, tiered rate structures, and a first-time homebuyer exemption buried in the fine print, there's a lot to track.
This guide breaks it all down: every fee, every tax, what the buyer pays, what the seller pays, and the county-level differences that catch people off guard. If you're closing in Montgomery County, Prince George's County, or anywhere in the Maryland suburbs, read this before you sit down at the table.
How much are closing costs in Maryland?
Buyers typically pay 3%–5% of the purchase price. Sellers pay 4%–8% (including commissions). Maryland has higher recordation taxes than Virginia, especially in Montgomery County.
Does Maryland have a transfer tax?
Yes. Maryland charges a 0.5% state transfer tax. Counties add their own transfer taxes: Montgomery County charges 1%, Prince George's County charges 1.4%. These are typically split between buyer and seller but the split is negotiated in the contract.
What is Maryland's recordation tax?
Each county sets its own recordation tax rate. Montgomery County uses a tiered system based on property value (ranging from ~$4.45 to $11.35 per $500); PG County charges $2.75 per $500. This is usually the largest single tax line item at a Maryland closing.
Is there a first-time homebuyer discount on closing costs in Maryland?
Yes. Maryland first-time buyers purchasing a primary residence pay a reduced state transfer tax rate of 0.25% instead of 0.5%. The seller typically covers the difference.
Who pays for title insurance in Maryland?
Lender's title insurance is paid by the buyer. Owner's title insurance payment varies — it's negotiated in the contract and can go either way. Unlike Virginia, there's no universal custom.
Do I need an attorney to close in Maryland?
Maryland requires an attorney to conduct real estate closings. Your title company (Pruitt Title) provides this service — you don't need to hire a separate attorney.
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The ranges above are estimates based on typical transactions. Your actual number depends on your county, purchase price, loan type, and what's negotiated in your contract.
Pruitt Title closes transactions across Virginia, Maryland, and DC. We'll give you a clear, itemized quote upfront — no mystery fees on closing day.
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Buying in Bethesda? See our Bethesda title company for a free closing cost estimate.
Buying in Bethesda? See our Bethesda title company for a free closing cost estimate.
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