Closing Costs in Maryland: What Buyers and Sellers Actually Pay in 2026

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 typically pay 4%–8%, depending on agent commissions and whether they're covering any buyer concessions.

At common Maryland suburban price points:

Maryland buyers pay more than Virginia buyers on average — largely because of higher recordation tax rates, especially in Montgomery County. Get a precise number before you're at the table: Pruitt Title's closing cost calculator handles Maryland transactions.

Buyer Closing Costs in Maryland

Lender Fees

Same as Virginia — these vary by lender and are your biggest opportunity to save money through shopping.

Origination fee: 0.5%–1% of the loan amount. On a $550K purchase with 20% down ($440K loan): $2,200–$4,400.

Underwriting fee: $400–$900. Some lenders bundle this with origination; others break it out separately.

Discount points (optional): 1 point = 1% of the loan. Only worth it if you're planning to stay long-term.

Application/processing: $300–$500 at some lenders; others absorb it into origination.

Appraisal

Required by your lender to confirm the home's value supports the loan amount.

Cost: $500–$1,000. Maryland properties in higher price brackets or with unique features can run toward the top of that range.

Home Inspection

Not collected at closing, but part of your total transaction cost. Budget $450–$800 for a standard single-family home in the Maryland suburbs.

Title Insurance — Lender's Policy

Your lender requires a lender's title insurance policy. In Maryland, it's typically paid by the buyer.

Cost: Based on the loan amount. On a $440K loan: approximately $900–$1,300.

Owner's title insurance: As in Virginia, the buyer customarily pays for the owner's policy, though it can be negotiated. Either way, the buyer is strongly encouraged to obtain it — title defects don't announce themselves, and an owner's policy is the only protection that covers you after closing.

On a $550K purchase: about $2,700 for a standard owner's policy in Stewart Title's published Maryland schedule, before discounts. Other underwriters' rates differ.

Settlement/Attorney Fee

Maryland requires an attorney to conduct real estate settlements. The title company provides this service — which is why you want an experienced settlement firm like Pruitt Title, not whoever the builder or listing agent recommends.

Cost: $500–$900 for the settlement/attorney fee. The complete title package (search, insurance, settlement) typically runs $2,000–$3,200 in Maryland.

Recordation Tax (Buyer's Portion)

This is where Maryland gets complicated. Recordation taxes are set by the county — and they vary significantly.

#### Montgomery County Recordation Tax (2026)

Montgomery County's recordation tax is tiered based on property value and has been adjusted to include a school increment. The effective combined rates for 2026:

Example: On a $650K purchase in Montgomery County, the recordation tax is $6,820 ($4.45 per $500 on the first $500,000, $6.75 on the next $100,000 and $10.20 on the last $50,000), or $5,930 with the first $100,000 exempt for a principal residence. This is typically split between buyer and seller, but what each party pays is negotiable.

An $890 exemption may apply for owner-occupied residential properties — ask your settlement attorney.

#### Prince George's County Recordation Tax (2026)

PG County's recordation tax is $2.75 per $500 of the instrument value — significantly lower than Montgomery County.

On a $550K purchase: $2.75 × 1,100 = $3,025. Again, typically split between buyer and seller.

#### Other Maryland Counties

Frederick County, Anne Arundel, Howard, and Baltimore County each have their own rates. Pruitt Title handles closings across Maryland — we'll provide the exact rate for your county when you request a quote.

Transfer Tax (State)

Maryland's state transfer tax is 0.5% of the purchase price.

First-time homebuyer exception: If you're a Maryland first-time buyer purchasing a primary residence, the state transfer tax drops to 0.25% of the price and the seller pays all of it by law, so you pay none of it. On a $550K purchase at 0.5%: $2,750.

Recording Fees

A flat fee to officially record the deed and deed of trust with the county circuit court.

Cost: $25–$100 depending on the county.

Prepaid Items & Escrow Setup

Homeowner's insurance: 12 months prepaid. Budget $1,200–$2,400 for most Maryland suburban homes.

Property taxes: 2–3 months in escrow. Montgomery County's effective rate is approximately 0.94%; PG County runs higher, around 1.1%.

On a $550K home in Montgomery County: ~$4,300/year in taxes, so ~$1,075–$1,613 prepaid.

Prepaid mortgage interest: Interest from your closing date through month end.

Seller Closing Costs in Maryland

State Transfer Tax (Seller's Share)

Maryland's 0.5% state transfer tax is typically split between buyer and seller — 0.25% each. If the buyer is a first-time Maryland homebuyer, the state transfer tax drops to 0.25% of the price and the seller pays all of it.

County Transfer Tax

Montgomery County: 1% of sale price for properties sold at $70,000 or more. On $550K: $5,500. Often split between buyer and seller — typically 0.5% each, but negotiated in the contract.

Prince George's County: 1.4% transfer tax. On $550K: $7,700. This is one of the highest county transfer taxes in Maryland — PG County sellers should plan accordingly.

Recordation Tax (Seller's Portion)

The recordation tax is typically split between buyer and seller, though the allocation is negotiated in the contract of sale and can vary.

Owner's Title Insurance

In Maryland, the buyer customarily pays for the owner's policy, as in Virginia. A seller can agree to cover it as a concession, so check what the contract says.

Real Estate Commissions

Under the new NAR guidelines, seller's agent commission is typically 2.5%–3.5% of the sale price. Buyer's agent compensation is separately negotiated.

On a $550K sale at 2.75% seller-side: $15,125.

Settlement Fee (Seller's Portion)

Sellers pay a portion of the settlement/attorney fee. Typically $400–$700.

Deed Preparation

Usually included in the settlement fee or billed separately at $150–$300.

Prorated Property Taxes

You're responsible for taxes through the day of closing. If closing mid-year, expect a credit to the buyer at settlement.

HOA Resale Package (if applicable)

Maryland law requires sellers to provide buyers with the HOA's governing documents and financials before closing. The HOA or its management company charges for this — typically $150–$400.

The Big Difference: Montgomery County vs. Prince George's County

This catches a lot of buyers off guard when they're shopping across county lines.

Bottom line: Closing costs in Montgomery County are meaningfully higher than PG County on a same-price-point comparison — primarily because of the tiered recordation tax structure. On a $750K purchase in Montgomery County, the combined transfer and recordation taxes can exceed $20,000. In PG County at the same price, it's closer to $15,000.

Neither is "better" — it depends on where you want to live. But when comparing homes near the county line (think: Wheaton, Hyattsville, College Park, Greenbelt areas), the closing cost difference is worth knowing.

First-Time Homebuyer Savings in Maryland

If you're buying your first home in Maryland and it will be your primary residence:

• State transfer tax: Reduced from 0.5% to 0.25%
• The seller pays your portion: By default under Maryland law, the seller is responsible for the additional 0.25% (your discount). This is built into most contracts automatically.

What's Negotiable in Maryland?

Recordation and transfer tax allocation: Who pays what is stated in the contract of sale and negotiated between buyer and seller. The "customary" split varies by county. Ask your agent what's standard in your specific jurisdiction.

Seller credits: In a buyer's market, you can ask the seller to cover some closing costs. On FHA loans, sellers can cover up to 6% of the purchase price in concessions.

Owner's title insurance: Whether buyer or seller pays is negotiable.

Lender fees: Always shop at least three lenders. On a $440K loan, even a 0.25% origination fee difference saves $1,100.

Settlement company selection: Maryland buyers and sellers generally have the right to choose their own title/settlement company. Choosing Pruitt Title means you're working with attorneys who handle DMV transactions daily — not a volume shop who'll mail you a stack of papers.

On a $550K sale that is $1,375 either way: half of 0.5% normally, or the full 0.25% when the buyer qualifies.

The seller pays it: by law the seller pays the entire reduced 0.25% state transfer tax, and the contract cannot shift it to you. On a $400K purchase, that's $1,000 you would otherwise have paid as your half. Eligibility: You must never have owned, in Maryland, a home that was your principal residence, and every buyer on the deed must qualify. Confirm with your settlement attorney.

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 no state transfer tax: the rate drops to 0.25% and the seller pays all of it by law.

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.

Get a Quote for Your Maryland Closing

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.

Get a free closing cost estimate → → https://pruitt-title.titlecapture.com/title-quote

Have a specific question about your transaction? Reach out directly. We'd rather answer it now than have it surprise you at the table.

Buying in Bethesda? See the Bethesda title company guide for a free closing cost estimate.

Request a quote from Pruitt Title for local Maryland closings, or see the Bethesda title company guide.

Compare Maryland closing costs for a detailed breakdown.