Buyer Closing Costs in Maryland: A Complete Guide for 2026
Buying a home in Maryland comes with various closing costs that buyers need to prepare for. These expenses can add up, so it's essential to understand what you'll owe at closing.
Local insight
Maryland's recordation tax is set by each county and charged on the purchase price, and the state transfer tax is 0.5% of the sales price. Maryland law presumes the buyer and seller split these taxes equally unless the contract says otherwise, and first-time Maryland homebuyers pay no state transfer tax.
Common Buyer Closing Costs in Maryland
- Loan Origination Fees: Charged by the lender for processing your mortgage, typically 0.5%-1% of the loan amount.
- Title Insurance: Protects you and the lender from title disputes. Buyers usually pay for the lender's title insurance policy.
- Appraisal Fees: Required by lenders to assess the home's value, usually $300-$500.
- Home Inspection Fees: Optional but recommended, costing $300-$500.
- Prepaid Expenses: Includes property taxes, homeowners insurance, and prepaid interest.
- Recording Fees: Paid to the county to record the deed and mortgage.
Maryland Recordation & Transfer Taxes
Maryland charges recordation tax and transfer tax, both based on the purchase price:
- Recordation Tax: Set by each county—Montgomery County is $4.45 per $500 on the first $500,000, with the first $100,000 exempt for a principal residence
- State Transfer Tax: 0.5% of the sales price (0.25%, paid entirely by the seller, for qualifying first-time Maryland homebuyers)
- County Transfer Tax: Set by each county—Montgomery County is 1% of the price
Example: For a $500,000 principal residence in Montgomery County, with taxes split equally:
- Recordation Tax (buyer's half of $3,560): $1,780
- State Transfer Tax (buyer's half of $2,500): $1,250
- County Transfer Tax (buyer's half of $5,000): $2,500
- Total Buyer Taxes: $5,530
How to Estimate Your Closing Costs
Use our Maryland Closing Cost Calculator to calculate buyer closing costs in Maryland based on your loan amount, location, title insurance needs, and settlement cost inputs.
Estimated Buyer Costs Example
For a $500,000 Montgomery County principal residence with 20% down ($400,000 loan), taxes split equally:
- • Loan Origination (1%): $4,000
- • Title Insurance (Owner's + Lender's): about $2,860 (Stewart's published rates)
- • Appraisal: $400-500
- • Inspection: $400-500
- • Recordation Tax: $1,780
- • State + County Transfer Tax: $3,750
- • Prepaid Taxes/Insurance: $3,000-5,000
- • Estimated Total: $16,200 - $18,400
Frequently Asked Questions
Are closing costs negotiable in Maryland?
Some costs, like lender fees, may be negotiable. Shop around for the best rates.
Can I roll closing costs into my mortgage?
Some loans allow this, but it will increase your loan amount and monthly payments.
How much is title insurance in Maryland?
Title insurance typically costs 0.5%-1% of the home's purchase price.
When do I pay closing costs?
All closing costs are paid at the settlement table when the purchase is finalized.
Get Your Maryland Buyer Closing Cost Estimate
Contact Pruitt Title LLC for an accurate closing cost estimate for your Maryland home purchase.