Maryland Closing Costs for Buyers: How Much You'll Pay

Transfer tax in Maryland

County recordation tax is state-authorized (Tax-Property Title 12) but the rate is set by each of Maryland's 23 counties and Baltimore City individually, expressed as a dollar amount per $500 of consideration or of the secured debt; rates in this dataset's six counties range from $2.50/$500 (Baltimore City, pre-surcharge) to Montgomery County's tiered $4.45-$11.35/$500 schedule.

Who pays: Negotiable by contract; in most of the Maryland suburban/DC metro market the seller customarily pays the state and local transfer taxes and the buyer customarily pays the recordation tax on the deed of trust (mortgage) tied to the buyer's own loan, though local custom varies by county and everything is negotiable. The state's 0.25% first-time-buyer transfer tax rate is a statutory seller-pay requirement (Tax-Property 13-203). Source

Worked example: On a $446,900 home in Montgomery County: state transfer tax 0.5% = $2,234.50 (split by custom, often seller-paid), county transfer tax ~1.0% = $4,469 (customarily seller-paid), and recordation tax on the buyer's deed of trust for a comparable loan amount runs about $4.45 per $500 (0.89%) on the portion up to $500,000, i.e. roughly $3,983 on a $446,900 loan before the $100,000 owner-occupied exemption is applied (which would reduce the taxable base to $346,900, or about $3,089).

How much is title insurance in Maryland?

On a $446,900 home in Maryland, an owner's title policy costs about $2,262 and the lender's policy about $350 when both are issued together (the simultaneous-issue discount). The buyer pays the lender's policy; who pays the owner's policy is a matter of local custom and contract. Maryland is a filed-competitive state: each title insurer files its own rates, so premiums differ by company and it pays to get two quotes. Premiums computed from Stewart Title Guaranty Company, Maryland Schedule of Charges and Forms, effective 11/24/2025 (filed with the Maryland Insurance Administration).

Who pays the owner's policy: Local custom decides; per the Maryland Insurance Administration's consumer guide, who pays for the owner's policy depends on local custom and is negotiable in the contract of sale (many MD-DC-metro contracts have the seller pay, but this is not a statutory requirement). Source

Owner's policy at $446,900 computed from Stewart's filed original owner's-policy rate: $5.41/$1,000 on the first $250,000 ($1,352.50) plus $4.62/$1,000 on the remaining $196,900 ($909.68) = $2,262.18.

Maryland-specific buyer costs on a $446,900 home

These are the line items set by Maryland law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.

Do you need a closing attorney in Maryland?

Yes. Maryland Real Property Code section 7-113 requires that real estate settlements involving Maryland real property (both purchase and refinance transactions) be conducted by a licensed Maryland attorney. Deeds, mortgages, and deeds of trust must also be prepared by an attorney, under an attorney's supervision, or by one of the named parties. Source

Recording fees

Recording the deed costs $60 and the mortgage $60 at the Montgomery County Circuit Court Land Records / Recording Office. Fee schedule

Other Maryland specifics

• Maryland first-time buyer state transfer tax exemption. A first-time Maryland home buyer purchasing improved residential real property as a principal residence pays state transfer tax at 0.25% instead of 0.5%, and that reduced tax must be paid entirely by the seller, not the buyer. Source
• Owner-occupied recordation/transfer tax exemptions. Most Maryland counties exempt a threshold amount of consideration from local recordation and/or transfer tax when the buyer affidavits that the property will be their owner-occupied principal residence (e.g., first $100,000 in Montgomery County, first $22,000 in Baltimore City and Baltimore County). Source

How much are closing costs in Maryland?

For a buyer, closing costs usually run 2% to 5% of the purchase price. On Maryland's median-priced home (about $446,900), that is roughly $8,938 to $22,345, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.

What closing costs include

Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Maryland transfer tax, plus prepaid property taxes and homeowners insurance.

Why Maryland closing costs vary

The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter.

How a rebate offsets Maryland closing costs

Buyer commission rebates are legal in Maryland. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $446,900 home, a 2% rebate is about $8,938, often enough to cover much of the closing bill.

See Maryland buyer rebates and how to get one →

Sources

• Maryland transfer tax statute
• Baltimore City transfer tax
• Stewart Title Guaranty Company, Maryland Schedule of Charges and Forms, effective 11/24/2025 (filed with the Maryland Insurance Administration)
• Who pays the owner's title policy
• Maryland closing attorney rule
• Montgomery County Circuit Court Land Records / Recording Office recording fees
• Baltimore City Department of Finance, Recordation Taxes
• Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price

Maryland figures last verified against official sources on September 11, 2026.