Paying transfer rates & recordation taxes

Residential purchase transactions: Read on for a break down of taxes associated with the purchase of a residential property in the District of Columbia, Maryland or Virginia.


District of Columbia

Recordation Tax (also known as Transfer Tax) - Calculated using the purchase price.

 * Transactions $399,999 and under are taxed at the rate of 1.1% of the purchase price. Example: $300,000 x 1.1% = $3,300. So the buyer and seller would each pay $3,300 for a total of $6,600 paid to DC.
 * Transactions $400,000 and above are taxed at the rate of 1.45% of the purchase price. Example: $500,000 x 1.45% = $7,250. So the buyer and seller would each pay $7,250 for a total of $14,500 paid to DC.

Read More: DC Tax Abatement Program

Recording Fees (recording of Deeds, Deeds of Trust, and other instruments of record)

 * $26.50 for the first two pages and $7 for each page thereafter. This generally results in a total recording cost of approximately $290 for purchase transactions.

Property Taxes - Paid semi-annually, the two tax periods are:

 * Taxes due on 3/31 for the period of 10/1 - 3/31.
 * Taxes due on 9/30 for the period of 4/1 - 9/30.

 

Maryland

Recordation (also known as Transfer Taxes)

 * State Transfer Tax is 0.25% to purchasers for all counties.
 * State Recordation Tax (see chart below).
 * County Transfer Tax (see chart below).

NOTE: If the borrower is a first-time Maryland Homebuyer who will occupy the property as principal residence, then the borrower is exempt from state transfer tax. However, all purchasers must be first-time homebuyers in Maryland to qualify.

Recording Fees (recording of Deeds, Deeds of Trust, and other instruments of record)

 * $40 for each Deed or Deed of Trust.
 * $30 per release.

This generally results in a total recording charge of approximately $80 for purchase transactions.

County
 Recordation Tax1 County Transfer Tax2  Property Tax Rate3  Code
Allegheny $3.25 0.25% $1.132 1
Anne Arundel $3.50 0.50% $1.087 --
Baltimore County^ $2.50 0.75%  $1.247  2
Baltimore City^ $5.00 0.75% $2.460 8
Calvert $5.00 None $1.024 --
Caroline $5.00 0.25% $1.084 3
Carroll $5.00 None
 $1.180 8
Cecil $4.10 None $1.112 4
Charles $5.00 None
 $1.148 --
Dorchester $5.00 0.375% $1.062 --
Frederick $6.00 None
 $1.132 --
Garrett $3.50 0.50% $1.168 5
Harford $3.30 0.50% $1.224 1-8
Howard $2.50 0.50% $1.176 8
Kent $3.30 0.25%  $1.144 --
Montgomery
PP < $500k		 
$3.45		 
0.50%		 
$0.883		 
5
Montgomery
PP > $500k		 $5.00 0.50% $0.883 5
Prince George's $2.50 0.70% $1.092 --
Queen Ann's $4.95 0.25%  $1.108 6
St. Mary's $4.00 0.50% $1.040 1
Somerset $3.30 None
 $1.142 --
Talbot $3.30 0.50%
 $0.685
 5
Washington $3.80
 0.25%
 $1.080
 --
Wicomico $3.50
 None
 $1.173 5
Worchester
 $3.30
 0.25% $0.862 5

NOTE: The above Transfer & Recordation Taxes are based on customary splits (apportionment) between buyer and seller, the split is typically 50-50. In some cases, the parties may reallocate the responsibility to pay Transfer & Recordation Taxes.

We advise that you carefully review the sales contract prior to calculating the transfer & recordation taxes. If you have any questions, please contact us at This e-mail address is being protected from spambots, you need JavaScript enabled to view it .

1
 Per $1,000 of purchase price (based on loan amount for refinancing transactions)
2
 Percent of purchase price
3
 Per $100 of value (includes state real property tax of ...084/$100).

^ We do not offer services in these locations.

NOTE: Tax rate may vary in cities of other incorporated areas.

   1. The first $30,000 is exempt for owner occupied principal residence.
   2. The first $22,000 is exempt for owner occupied principal residence.
   3. The first $25,000 is exempt for owner occupied principal residence OR the first $75,000 is exempt for owner occupied principal residence AND first-time Maryland Homebuyers.
   4. Surcharge of $10 per Deed/Deed of Trust.
   5. The first $50,000 is exempt from Recordation Tax for owner-occupied principal residence.

Example: A primary residence with the first $50k exempt from tax and a purchase price of $700k, will be taxed as follows:

   450 x $3.45 = $1,552.50
+ 200 x $5.00 = $1,000.00
          Total = $2,252.50

   6. Exempt for first time Maryland Homebuyer.
   7. Washington County has a 2% Agriculture Tax, if applicable.
   8. These counties require a lien certificate, fee ranging $25 - $55.

Property Taxes
Principal residences are paid semi-annually, non-principal residences and investment properties are paid annually.

For principal residences:
 * Taxes due on 9/30 for the period of 7/1 - 12/31.
 * Taxes due on 12/31 for the period of 1/1 - 6/30.

For non-principal residences and investment properties:
 * Taxes du on 9/30 for the period 7/1 - 6/30.

 

Virginia

Recordation Tax (also known as Transfer Tax) 

 * Deed Tax = $3.33 per $1000 of Purchase Price.
 * Trust Tax = $3.33 per $1000 of loan amount.

Recording Fees (recording of Deeds, Deeds of Trust, and other instruments of record)

 * $33.00 to record a deed and $66.00 to record a mortgage, regardless of the number of pages in the documents. This generally results in a total recording charge of approximately $99 purchases.

Property Taxes
Taxes are paid semi-annually, due dates vary by county. A few counties are outlined below:

 * Fairfax County
          o First Half due 7/28
          o Second Half due 12/5
          o 703-222-8234
 * Arlington
       o First Half due 6/5
       o Second Half due 10/5
       o 703-228-3090
 * City of Alexandria
       o First Half due 6/15
       o Second Half due 11/15
       o 703-838-4777
 * Prince William
       o First Half due 7/28
       o Second Half due 12/5
       o 703-792-6710

Updated on 9/23/2009 | This information is deemed reliable, but not guaranteed.

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