Taxes

TRANSFER / RECORDATION FOR BUYERS

Click on a jurisdiction below for a break down of taxes associated with the purchase and sale of a residential property.

  • District of Columbia

    Recordation tax (a.k.a. transfer tax) is calculated by purchase price.

    • Transactions $399,999 and under are taxed at a rate of 1.1% of the purchase price.
    • Transactions $400,000 and above are taxed at a rate of 1.45% of the purchase price.
    • Transactions $632,500 and below, a first-time D.C. homebuyer may be eligible for reduced recordation tax of 0.725%, learn more.
    • Example 1: $300,000 x 1.1% = $3,300.
      Buyer and seller each pay $3,300 for a total of $6,600 paid to DC.
    • Example 2: $500,000 x 1.45% = $7,250.
      Buyer and seller each pay $7,250 for a total of $14,500 paid to DC.

    FURTHER READING: HOW TO QUALIFY FOR DC TAX ABATEMENT

    Recording fees (Deeds, Deeds of Trust, etc.)

    • $31.50 for a Deed and $156.50 for a Deed of Trust.

    Property taxes are paid semi-annually:

    • Taxes due 3/31 for the period of 10/1 – 3/31
    • Taxes due 9/15 for the period of 4/1 – 9/30
  • Maryland

    Transfer tax (a.k.a. recordation tax) is calculated by purchase price

    • State Transfer Tax is 0.5% of the purchase price
    • State Recordation or Stamp Tax (see chart below)
    • County Transfer Tax (see chart below)
    • All of the above are customarily split 50/50 between buyer and seller

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

    Recording fees (Deeds, Deeds of Trust, etc.)

    • $60 for each Deed or Deed of Trust
    • $50 per release

    This generally results in a total recording charge of approximately $120 for purchase transactions.

    Transfer & Recordation tax table

    The chart below shows the total amount of taxes, by county, to be paid at settlement based on the purchase price of the property. For fast, accurate tax calculations, try our app Close It! for iOS and Web.

    Property taxes

    Principal residences are paid semi-annually, and 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 due on 9/30 for the period 7/1 – 6/30
  • Virginia

    Recordation tax (a.k.a. transfer tax) is calculated by purchase price

    • Deed Tax = $3.33 per $1000 of purchase price or assessed value (tax will be on the higher value)
    • Trust Tax = $3.33 per $1000 of loan amount

    Recording fees (Deeds, Deeds of Trust, etc.)

    • $43.00 to record a deed and $56.00 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

    • First Half due 7/28
    • Second Half due 12/5
    • 703-222-8234

    Arlington

    • First Half due 6/5
    • Second Half due 10/5
    • 703-228-3090

    City of Alexandria

    • First Half due 6/15
    • Second Half due 11/15
    • 703-838-4777

    Prince William

    • First Half due 7/28
    • Second Half due 12/5
    • 703-792-6710

Federal Title & Escrow Company

For nearly 25 years, our independently owned title company has leveraged technology to streamline the closing process, providing top-notch service at a competitive price for buyers, sellers, agents and lenders across the District of Columbia, Maryland and Virginia.

  • We are proud pioneers of creating a better closing experience for buyers, sellers, agent and lenders.
  • Our instant REAL Credit™ for ordering settlement services online has saved our neighbors upward of $18 million to date.
  • Our paperless, custom-built closing workflow software allows us to proactively keep customers in the know and avoid settlement surprises.
  • Our free mobile app Close It!™ helps homebuyers and their agents better understand the complete cost to be paid at closing.
    • Often imitated but never replicated – we set the bar other title companies aspire to reach.

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Closing Costs Explained...

Closing costs include taxes, lender fees and title fees that a homebuyer pays at settlement. Watch this video to prepare for the process.

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