Bulletin: MD2016004

Dear Associates:

This is a quick-reference guide to Maryland recordation and transfer taxes, exemptions thereto, and related state and county tax rates.

Definitions:

• A recordation tax is an excise tax imposed by the State of Maryland for the privilege of recording an instrument in the Land Records. It is generally collected by each clerk or county fiscal office and goes to the county’s treasury, although in some jurisdictions the clerk retains a percentage of the tax to pay for those services.
   
• A transfer tax is an excise tax imposed by the State of Maryland for the privilege of recording an instrument in the Land Records which conveys title to, or a leasehold interest in, real property. The state transfer tax of 0.5% of the consideration payable for each instrument of writing (as required by MD Tax-Property § 13-203(a)) is collected by Clerks of the Circuit Courts, then remitted to the Maryland Comptroller for deposit into a special fund. Note that transfer taxes do not apply to mortgages, deeds of trust, or other documents that create an encumbrance on real property.
   
• Recording fees are charges imposed for the process of physically adding documents to the Land Records. These fees vary by jurisdiction and should be verified for each transaction.

Note that Baltimore City and most counties also impose local transfer taxes.

Click here for a list of common recordation and transfer tax exemptions.

Click here for state and county tax rates for recordation and transfer taxes.

DISCLAIMER: THE INFORMATION IN THIS BULLETIN IS SUBJECT TO CHANGE AT ANY TIME. YOU MUST CONFIRM ALL TAX CALCULATIONS WITH THE RELEVANT JURISDICTION. STEWART TITLE GUARANTY CO. MAKES NO GUARANTEES OF THE ACCURACY OF ANY INFORMATION CONTAINED HEREIN.

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