Baltimore County closing costs and transfer tax

Baltimore County wraps around Baltimore City on three sides, from Catonsville and Arbutus in the west to Dundalk and Essex in the east and the farmland of the north. Whatever the neighborhood, a home sale here pays the same set of taxes. This guide explains each one, who pays it, the extra paperwork Baltimore County asks for, and where your deed ends up. The rest of Maryland is on our areas we serve page.

No town taxes on top

Baltimore County has no incorporated cities or towns. Towson, Catonsville, Dundalk, Owings Mills and the rest are communities, not municipalities, so every property pays county and state rates only. There is no second layer of local transfer tax or town property tax to look for.

That matters because Baltimore City, next door, is a separate jurisdiction with different rates. Many county homes have a “Baltimore, MD” mailing address, but the mailing address does not decide which taxes apply; the property’s location does. The SDAT Real Property Data Search shows the jurisdiction for any address, and the title search confirms it. If the home turns out to be in the city, see our Baltimore City closing costs guide. The same check matters along the Patapsco River, where Baltimore County faces Howard County; our Ellicott City guide covers that line.

The three taxes on a Baltimore County sale

• 1.5%County transfer tax1.5% of the price, at one flat rate whatever the price. When the home will be the buyer’s principal residence, the first $22,000 of the price is exempt, which saves $330. Ask us to confirm that it applies to your purchase.
• 0.5%State transfer tax0.5% of the price, or 0.25% when the buyers are first-time Maryland home buyers who will live in the home.
• $2.50 per $500Recordation tax$2.50 on every $500 of the price, with any leftover part of $500 charged as a full $500. That comes to about 0.5% of the price.

A purchase-money mortgage (a loan that pays for the home and is recorded with the deed) does not add more recordation tax. Refinances and home equity loans follow different rules, so ask us if you are borrowing against a home you already own.

The lien certificate step

Baltimore County’s deed transfer rules call for a lien certificate with any deed that transfers ownership. The certificate is the county’s statement of any unpaid taxes or charges on the property’s tax account.

For a seller, this means old balances come to light before settlement, not after. Your settlement agent orders the certificate and shows any amounts due on the settlement statement; they are usually paid at settlement from the seller’s proceeds.

Two more steps apply to some deeds. Every deed needs a completed Maryland State Intake Sheet. The county’s deed instructions also say that deeds for agricultural-use land, and deeds that transfer only part of a parcel, must first be approved by SDAT. Your settlement agent handles these steps when they apply.

Where the deed is taxed and recorded

After settlement, the deed goes first to Baltimore County’s Office of Budget and Finance in Towson, which reviews it and collects the county transfer and recordation tax. The deed is then recorded by the Clerk of the Circuit Court for Baltimore County, Land Records Indexing and Recording Division, at the County Courts Building, 401 Bosley Ave., Towson, MD 21204. You do not need to visit either office; your settlement agent sends the deed and any new mortgage and follows them until they are recorded.

Title issues that come up in Baltimore County

Wells and septic outside the URDL

For decades the county has used the Urban-Rural Demarcation Line (URDL) to decide where public water and sewer go. Inside the line, most homes are on public utilities. Outside it, across much of the northern county, most homes rely on a private well and septic system. Consider writing water quality and septic inspections into the contract as contingencies, and ask your lender what it requires.

Waterfront homes and the critical area

The county’s eastern side runs along tidal rivers and the bay. Land within 1,000 feet of tidal water or tidal wetlands falls in the Chesapeake Bay Critical Area, which has a buffer of at least 100 feet along the shore and extra limits on building. If you plan a pier, addition or shed, check with the county about what is allowed before you buy. Every Maryland sales contract must carry a critical area notice for this reason.

Ground rents on older homes

Some older Baltimore-area homes, often rowhouses, still sit on a ground lease, with a small yearly rent owed to a ground rent holder. A holder must register the ground lease with SDAT to collect the rent. The title search should find a ground lease, SDAT’s ground rent registry shows whether one is registered, and SDAT runs a process for owners who want to buy out the ground rent.

Older lots, estates and out-of-state sellers

In older neighborhoods, fences and sheds do not always match the lot lines on the recorded plat. A survey can show the problem before you buy. An owner’s title policy is optional in Maryland; its premium is paid once, at settlement, and it protects against covered title defects for as long as you own the home. See why title insurance matters.

When the owner has died, the personal representative of the estate usually signs the deed; our deeds and family transfers service handles those sales. When the seller is an individual who lives outside Maryland, the state requires 8.75% of the seller’s net proceeds to be withheld at settlement unless an exemption applies; see our nonresident seller guide.

How Maryland First Title helps

Maryland First Title has provided attorney-led title and settlement services in Maryland since 1994. We run the title search, order the lien certificate, clear what the search turns up, hold the escrow money and conduct settlement. Our attorneys will meet you anywhere in Baltimore County at no extra cost, meet online, or host you at our Glen Burnie office. Our owner’s and lender’s title policies are backed by Stewart Title.

For a standard sale or purchase, see residential title and settlements. Selling without an agent? See our for sale by owner support. Buying without one? See buying without an agent. Investors exchanging into or out of a county property can read about 1031 exchanges.