Maryland Closing Costs Guide
Complete guide to closing costs in Maryland. Learn what to expect as a buyer or seller, including transfer taxes, recordation fees, and title insurance in the Free State.
Maryland Closing Cost Calculator
Sale Price
$500,000
Loan Amount
$400,000
Buyer Est.
$25,745
Seller Est.
$20,420
MD state transfer tax: 0.5% (1% if buyer not owner-occupied). County transfer tax varies.
Buyer Closing Costs
* Estimates only. Actual costs vary. Contact DMV Title Guy for a precise quote.
Seller Closing Costs
* Estimates only. Actual costs vary. Contact DMV Title Guy for a precise quote.
Ready for a Precise Quote?
Contact Will Rapuano at Pruitt Title LLC — we'll walk through actual costs for your transaction.
💡 Local Insight: Maryland has the most variable closing costs in the DMV—Montgomery County's 1.5% transfer tax vs. Frederick's 1.0% can mean a $2,500 difference on a $500K home. We help buyers understand county-specific costs before signing.
What Buyers Pay in Maryland
Maryland buyers typically pay 3% to 5% of the purchase price in closing costs, in addition to their down payment. These costs include:
- State Recordation Tax: $6.60 per $1,000 of the loan amount (varies by county)
- County Recordation Tax: Varies by county—Montgomery County is approximately $6.60 per $1,000
- State Transfer Tax: 0.5% of purchase price (1.0% if not primary residence)
- County Transfer Tax: Varies by county—0% to 1.4% depending on jurisdiction
- Title Insurance: Owner's and lender's title insurance premiums
- Attorney/Settlement Fees: Typically $500-1,000 for closing services
- Survey and Inspection Fees: Varies by transaction
- Prorated Property Taxes: Property taxes from closing date through end of year
- Recording Fees: Small fees to record the deed and mortgage
Example: For a $500,000 home in Montgomery County with 20% down, buyer closing costs would be approximately $12,000-18,000.
What Sellers Pay in Maryland
Maryland sellers typically pay 1% to 3% of the sale price in closing costs (excluding real estate commissions). These costs include:
- Real Estate Commission: Typically 5-6% of the sale price (negotiable)
- State Transfer Tax: 0.5% of purchase price (1.0% if buyer won't use as primary residence)
- County Transfer Tax: Varies by county—Montgomery County is 1.0%
- Prorated Property Taxes: Property taxes from January 1 to closing date
- Outstanding Liens: Any liens on the property must be paid at closing
- Attorney Fees: If seller uses an attorney for the transaction
- HOA Fees: Any outstanding homeowners association dues
Example: For a $500,000 home in Montgomery County with a 6% commission, seller closing costs would be approximately $30,000-35,000.
Maryland Transfer & Recordation Taxes by County
| County | State Transfer | County Transfer | Total Transfer |
|---|---|---|---|
| Montgomery County | 0.5% | 1.0% | 1.5% |
| Prince George's County | 0.5% | 1.4% | 1.9% |
| Howard County | 0.5% | 1.0% | 1.5% |
| Anne Arundel County | 0.5% | 1.0% | 1.5% |
| Frederick County | 0.5% | 0.5% | 1.0% |
Note: These rates are subject to change. First-time homebuyers may qualify for exemptions in certain counties. Consult with your title company for current rates.
Title Insurance in Maryland
Maryland requires attorney or licensed title agent involvement at closing. Title insurance protects against hidden title defects that could affect your ownership rights.
Owner's Title Insurance
Owner's title insurance protects your investment against claims against your ownership of the property. It's a one-time premium paid at closing and provides coverage for as long as you own the property. For a $500,000 home, owner's title insurance costs approximately $1,500-2,000.
Lender's Title Insurance
Most lenders require lender's title insurance (also called a loan policy) to protect their interest in the property. This is typically a separate policy from the owner's coverage.
Simultaneous Issue Discount
Maryland offers a simultaneous issue discount when both owner's and lender's title insurance are purchased together. This can save buyers 10-20% on their title insurance costs.
Frequently Asked Questions
How much are closing costs in Maryland?
Maryland closing costs typically range from 3% to 5% of the purchase price for buyers and 1% to 3% for sellers. This includes transfer taxes, recordation taxes, title insurance, and various other fees. The exact amount depends on the purchase price, county, and whether you're buying or selling.
Who pays transfer taxes in Maryland?
In Maryland, transfer taxes are generally split between buyer and seller, but this can be negotiated in the contract. The state transfer tax is 0.5% (1.0% for non-primary residences), and county transfer taxes vary by jurisdiction—Montgomery County charges 1.0%, while Prince George's County charges 1.4%.
What is the recordation tax in Maryland?
Maryland recordation tax varies by county. In Montgomery County, it's $6.60 per $1,000 of the loan amount for the state portion, plus additional county recordation taxes. The buyer typically pays recordation taxes based on the mortgage amount.
Are there any exemptions from Maryland transfer taxes?
Yes, first-time homebuyers in Maryland may qualify for exemptions from county transfer taxes in certain circumstances. There are also exemptions for properties transferred between spouses, to a trust for estate planning purposes, or in connection with a divorce settlement. Consult with your title company for specific eligibility.
How much does title insurance cost in Maryland?
Maryland title insurance rates are filed with the Maryland Insurance Administration. For a $500,000 home, owner's title insurance typically costs $1,500-2,000. Maryland offers a simultaneous issue discount when both lender's and owner's policies are purchased together.
How do Maryland closing costs differ by county?
Maryland counties have varying transfer tax rates. Montgomery County has the highest at 1.5% combined, while Frederick County is lower at 1.0%. Prince George's County charges 1.9%. These differences significantly impact total closing costs.
What is the first-time homebuyer benefit in Maryland?
First-time Maryland homebuyers may qualify for exemptions from county transfer taxes and reduced recordation taxes. Programs vary by county—Montgomery County offers generous exemptions that can save thousands at closing.
Get Your Maryland Title Quote
Contact Pruitt Title LLC for an accurate closing cost estimate for your Maryland transaction.