Title and settlement in Catonsville, MD

Catonsville lies on the west side of Baltimore County, between the Baltimore City line and the Patapsco River. This guide is for anyone buying, selling or listing a home here; Catonsville’s main ZIP code is 21228. It covers the taxes on the settlement statement, the lien certificate Baltimore County requires, the steps from contract to keys, and the title questions that come up most. Maryland First Title, an attorney-led title and settlement company based in Glen Burnie, has served buyers and sellers across Maryland since 1994.

No town tax, but check which side of the city line you are on

Catonsville has no town government, so no municipal tax is added. The state’s tax rate table lists no incorporated towns anywhere in Baltimore County, so Catonsville, Towson and every other community pay county rates. For FY2027 (July 1, 2026 - June 30, 2027) the property tax rate is $1.10 per $100 of assessed value for the county, plus the state’s $0.112 per $100 of assessed value. Once a buyer’s homestead credit is approved, the yearly rise in the assessment used for county tax on a main home is capped at 4% (the state tax uses a 10% cap).

The homestead credit does not pass to a buyer with the house. New owners have to apply, and the person conducting the settlement must give the buyer the state’s application at settlement, so send it in promptly. Buyers on a modest income can also apply for the separate, income-based Homeowners’ Property Tax Credit. To have it reflected at settlement, the buyer must apply within 7 working days after the contract is signed; SDAT then has 5 working days to answer, and any credit it approves adjusts the tax due at settlement. A buyer who misses that window can still apply later, by the yearly deadline shown on SDAT’s application.

Catonsville’s eastern edge meets Baltimore City, which is a separate jurisdiction with its own transfer tax rules, its own lien certificate and its own land records office. A Catonsville mailing address does not settle the question. Before the title search starts, look the property up on SDAT’s Real Property Search and confirm it is listed under Baltimore County. For streets near the city line, our county lookup guide walks through the check. Across the Patapsco to the south and west is Howard County, which has its own rates.

Transfer and recordation taxes on a Catonsville home

When a Catonsville deed is recorded, three government taxes are due:

• 0.5%State transfer tax0.5% of the price.
• 1.5%Baltimore County transfer tax1.5% of the price. That is a higher rate than Anne Arundel County (1% on most homes) or Howard County (1.25%), which matters if you are comparing homes in more than one county.
• $2.50 per $500Recordation tax$2.50 per $500 of the price, about 0.50%. A part of $500 is charged as a full $500.

When the home will be the buyer’s principal residence, Baltimore County leaves the first $22,000 of the price out of the county transfer tax. That saves $330 on any sale above that amount. It does not reduce the state transfer tax or the recordation tax. The calculator on our Baltimore County page shows the saving on the buyer’s side; we confirm how the exclusion applies to your sale on your settlement statement.

Take the Baltimore County median sale price of $393,000 (July 2025 - June 2026). At that price the three taxes total $9,825 for an investor or second-home buyer, and $9,495 when the buyer will live in the home. A mortgage taken out to buy the home is generally not subject to recordation tax. Title insurance, the settlement fee, lender charges, the Clerk’s recording fees and the property tax adjustment are separate. For an all-in figure on a specific address, ask for an instant quote. The Baltimore County closing costs guide goes through the county’s rates in more detail.

Who pays the Catonsville sale taxes

Where a Catonsville contract is silent on these taxes, Maryland law presumes the buyer and seller split them equally. Plenty of contracts say otherwise, so the signed contract, not custom, decides who pays.

Selling to a first-time Maryland buyer who will live in the house shifts the bill to the seller. The state transfer tax falls to 0.25% ($982.50 at the median price), and the seller must pay all of it. The Baltimore County transfer tax and the recordation tax also fall on the seller, unless the contract expressly puts them on the buyer. The first-time buyer box in the calculator on our Baltimore County page shows each line at your price. Each buyer on the deed must be a first-time buyer, or a co-signer on the loan who will not live there, and each must sign a statement under oath. Baltimore County has no first-time buyer exemption of its own; a 2026 bill to create one (HB 602) was not enacted. Our first-time buyer transfer tax guide explains who counts as a first-time buyer.

Other items are divided at settlement:

• Property tax. Baltimore County’s tax year runs from July 1 to June 30. The year’s bill is usually divided between buyer and seller by the day.
• Water and sewer. For homes on public water, Baltimore City sends the quarterly water bills, even in the county, while Baltimore County puts its yearly sewer service charge on the July 1 property tax bill. Ask how the last water bill and the sewer charge will be handled on your settlement statement.
• Sellers who live outside Maryland. At settlement, Maryland withholds 8.75% of the net proceeds paid to a nonresident individual seller (8.25% for a nonresident business). It does not apply if the seller certifies the home was their principal residence, and a Comptroller certificate showing that less or no tax is due reduces or removes it.

The lien certificate, and where the deed goes

Baltimore County requires a lien certificate with every deed that changes ownership. It shows any unpaid county taxes and charges on the property. The county says that in most cases those must be paid before the transfer can be done; they are usually paid from the seller’s proceeds at settlement, so they do not become the buyer’s problem. We request the certificate at the start of the title work, not the week before settlement, so any balance or delay shows up early.

Every deed also needs a completed Maryland State Intake Sheet. Deeds for land in agricultural use, and deeds that transfer only part of a parcel, must first be approved by SDAT.

The deed then goes to the county’s Office of Budget and Finance, Transfer and Recordation Section, at 400 Washington Avenue in Towson, where it is reviewed and the county taxes are paid. From there it goes to 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, which records it in the land records. Your settlement agent handles both stops, so you do not need to go to Towson yourself.

Title questions that come up in Catonsville

• Older lots and descriptions. In long-established neighborhoods, the deed description or the original plat may not match where a fence, driveway or garage really sits. A survey shows where the lines fall. An owner’s title policy, which is optional in Maryland and paid for once at settlement, can protect the buyer against covered title problems for as long as they own the home. Read why title insurance matters.
• Selling an inherited home. When the owner has died, the deed must be signed by someone with legal authority, usually the personal representative appointed through the Register of Wills. Maryland inheritance tax is 10% on property passing to non-exempt heirs (for example nieces, nephews, cousins, friends). A spouse, children, grandchildren, parents, grandparents and siblings are among the heirs who are exempt. If an heir is living in the house while the estate is open, SDAT lets that heir keep or claim the homestead and homeowners’ credits for up to three tax years once an heir’s affidavit is filed. Our deeds and family transfers service covers estate sales and transfers within a family.
• Required contract notices. A Baltimore County sales contract must include the Chesapeake Bay critical area notice and the military installation notice. Read both. The critical area generally covers land within 1,000 feet of tidal waters and tidal wetlands; if it may apply to your lot, check the county’s critical area maps before planning an addition.
• Wells and septic systems. If the listing shows a private well or septic system rather than public water and sewer, ask early about water testing and a septic inspection, because the lender may require them before settlement.

Settling a Catonsville home with us

As an attorney-led title and settlement company, Maryland First Title searches the title, clears what the search turns up, holds the escrow money and runs the settlement. We can come to you in Catonsville at no extra cost, meet online, or see you at our Glen Burnie office, with weekend and after-hours appointments available. The owner’s and lender’s title policies we issue are backed by Stewart Title.

Buying or selling with agents? See residential settlements. No agent on your side? See our help for owners selling on their own and for buyers purchasing without an agent. If you are trading one investment property for another, read about 1031 exchanges.