Montgomery County Real Estate Transfer Tax Calculator

Real estate conveyances in Montgomery County are subject to three distinct tax components: the Maryland State Transfer Tax at 0.50% (0.5%), the Montgomery County Transfer Tax, and the Montgomery County Recordation Tax. For improved residential property, the Montgomery County Transfer Tax rate applies at 0.25% for consideration under $40,000; 0.50% for consideration of $40,000 or more but under $70,000; and 1.0% for consideration of $70,000 or more (unimproved and non-residential properties are generally subject to the 1.0% county transfer tax rate, and special county transfer-tax rates may apply to certain farmland transfers, rezoned properties, and other specially classified transactions). Montgomery County utilizes a progressive, tiered recordation tax structure assessed per $500 (or fraction of $500) of taxable consideration or secured principal debt: $4.45 per $500 (0.89%) for amounts up to $500,000; $6.75 per $500 (1.35%) for the slice between $500,000.01 and $600,000; $10.20 per $500 (2.04%) for the slice between $600,000.01 and $750,000; $10.78 per $500 (2.156%) for the slice between $750,000.01 and $1,000,000; and $11.35 per $500 (2.27%) for any portion exceeding $1,000,000. Recordation tax applies to consideration payable on the deed and to the principal debt secured by a mortgage or deed of trust (including assumed mortgages). Certain statutory exemptions may reduce or eliminate recordation tax on mortgage or deed-of-trust debt, including qualifying purchase-money and refinance transactions. Additionally, an owner-occupancy exemption exempts the first $100,000 of consideration from recordation tax (providing an $890 tax credit) when an individual buyer intends to use the property as their principal residence and actually occupies it for at least 7 of the 12 months immediately after the property is conveyed.

To calculate total tax liability, compute the three separate components based on the transaction amount. For example, on a $600,000 residential purchase by an owner-occupant: State Transfer Tax (0.50%) equals $3,000; County Transfer Tax (1.0%) equals $6,000. Recordation Tax is calculated in brackets on $500 increments, minus the $100,000 principal residence exemption ($890 credit): the first $100,000 is exempt ($0); the remaining $400,000 up to $500,000 is taxed at $4.45 per $500 ($3,560); and the slice from $500,000.01 to $600,000 ($100,000) is taxed at $6.75 per $500 ($1,350), yielding a net recordation tax of $4,910 ($5,800 baseline minus $890 credit). Combined, total deed conveyance taxes equal $13,910. For amounts not evenly divisible by $500, recordation tax units round up to the next $500 tier. Note that this example calculates taxes on the deed conveyance only and excludes any additional recordation tax due on a separately recorded mortgage or deed of trust, which depends on the principal amount of debt secured.

Under standard statutory defaults (Maryland Real Property Code § 14-104(b)), transfer and recordation taxes are split equally (50/50) between buyer and seller unless agreed otherwise in the purchase contract. However, when an eligible first-time Maryland homebuyer purchases improved residential property as a principal residence, Maryland Tax-Property Code § 13-203(b) reduces the state transfer tax rate from 0.50% to 0.25% and mandates that the seller pay the entire state transfer tax. Furthermore, under statutory defaults (Maryland Real Property Code § 14-104(c)), the seller must also pay the entire county transfer tax and recordation tax unless the purchase contract explicitly provides otherwise.

Montgomery County utilizes a sequential processing procedure. First, the deed and tax payments must clear the Montgomery County Department of Finance (Transfer/Recordation Tax Office, located at 27 Courthouse Square, Suite 200, Rockville, MD 20850) to pay county transfer tax and recordation tax, and to verify applicable property tax obligations and any required municipal clearances. Once stamped by the county finance office, the deed is submitted to the Land Records Department of the Clerk of the Circuit Court for Montgomery County (located at 50 Maryland Avenue, 2nd Floor, Rockville, MD 20850) to pay state transfer tax and court recording fees upon final recordation.

Submitting a deed for paper recordation in Montgomery County requires a fully executed original instrument, a photocopy of the instrument and any applicable survey for SDAT, a completed State of Maryland Land Instrument Intake Sheet, the county tax collector's certificate confirming applicable property taxes and charges have been paid, and payment of applicable state/county taxes and recording fees. To claim the recordation tax exemption on the first $100,000 of consideration, a Principal Residence Affidavit must be included. Standard court recording fees are $20 for an instrument involving solely a principal residence, regardless of page count; $20 for other instruments of nine pages or fewer; and $75 for other instruments of ten pages or more. Releases of nine pages or fewer cost $10. A $40 state recording surcharge generally applies to recordable instruments, subject to statutory exemptions and exceptions. Electronic submissions follow established county e-recording procedures through Simplifile.