Anne Arundel County charges $7.00 per $1,000 in recordation tax and a 1.0% county transfer tax on most home sales. On top of that, Maryland adds a 0.5% state transfer tax, and the three together often make up the largest government line on a buyer's closing costs.
The national closing-cost calculators flatten all of this into one "Maryland transfer tax" estimate. That said, the money moves through three separate taxes, two separate governments and a contract that decides who pays which share — and each piece shows up on its own line of the Closing Disclosure.
This guide extends our Maryland county series with one worked example at a 2026 price point. It walks through the county's published rates, the state first-time-buyer rule in Tax-Property §13-203(b) and exactly where each dollar lands in Section E of your Closing Disclosure.
On a $525,000 Anne Arundel purchase, county recordation tax is $3,675, county transfer tax is $5,250 and state transfer tax is $2,625. That is $11,550 in total before the contract divides it between buyer and seller.
The Three Taxes On An Anne Arundel Deed
Every recorded sale in Anne Arundel County carries three taxes, each set by a different source. Keep in mind that two are county taxes collected by the county's Recordation and Transfer Tax Division, while the third is a state tax collected at the same counter.
Here is how the three fit together, with each rate taken from its governing source as of October 2026:
- County Recordation Tax. The Anne Arundel County Recordation and Transfer Tax Division lists the recordation rate as $7.00 per thousand, rounded up to the nearest $500.00. It applies to the consideration stated on the deed.
- County Transfer Tax. The same county page lists the county transfer rate as 1.0% on transactions up to $999,999.99 and 1.5% on transactions of $1,000,000 or more. The 1.5% tier took effect July 1, 2023, under County Council Bill 40-23.
- State Transfer Tax. Maryland Tax-Property §13-203(a) sets the state rate at 0.5% of the consideration. Subsection (b) reduces that rate for qualifying first-time Maryland buyers, as covered below.
All of the above are calculated on the same sale price, but each follows its own rule. This is why a single blended percentage rarely matches the figure your settlement agent produces.
The Recordation Tax Rounding Rule
The recordation tax is charged per $1,000 of consideration, but the county rounds the taxable amount up to the next $500 increment. In practice, that works out to $3.50 for every $500 or fraction of $500 in the price.
Anne Arundel recordation tax is $7.00 per $1,000 of consideration, rounded up to the nearest $500. On a $525,000 deed, that is 525 multiplied by $7.00, or $3,675.
For instance, a $525,000 price is already a clean $500 multiple, so the math is straightforward. A $525,100 price, however, rounds up to $525,500 and produces $3,678.50 in recordation tax.
The County Transfer Tax Tiers
The county transfer tax has two tiers, and the county's rate page states them as follows. We reproduce them exactly as published rather than blending them into an average.
| Transaction Amount | Anne Arundel County Transfer Tax Rate | Source |
|---|---|---|
| Up to $999,999.99 | 1.0% | County Recordation and Transfer Tax Division rate page |
| $1,000,000 or more | 1.5% | County rate page; Bill 40-23, effective July 1, 2023 |
Anne Arundel's county transfer tax is 1.0% on transactions up to $999,999.99 and 1.5% on transactions of $1,000,000 or more, per the county's Recordation and Transfer Tax Division.
The county page states the 1.5% rate as applying to transactions of $1,000,000 or more. If your price sits near that line, confirm with the county or your title company how the rate is applied before you finalize an offer.
The Worked Example: A $525,000 Purchase In 2026
To make the mechanics concrete, we use an illustrative $525,000 purchase price for a single-family home or townhouse in Anne Arundel County. The price is an assumption for the example, not a market forecast, and the rates are the county and state rates cited above.
Here are the calculator inputs that drive every figure in this example:
- Purchase Price. $525,000 (illustrative), which is a clean $500 multiple, so no rounding adjustment applies to recordation tax.
- Buyer Status. Run twice: once for a repeat buyer, and once for a first-time Maryland buyer who will occupy the home as a principal residence.
- Contract Allocation. An assumed 50/50 split of county recordation tax, county transfer tax and (for the repeat buyer) state transfer tax. Your contract governs, so replace this with your actual terms.
- Price Tier. Under $1,000,000, so the 1.0% county transfer rate applies.
Once those inputs are set, the gross taxes are fixed by law. Only the split between buyer and seller depends on the contract and on the buyer's first-time status.
Gross Taxes On The Deed
Before anyone's share is assigned, the three taxes on a $525,000 deed add up as shown below. Note that the first-time-buyer column reflects the reduced 0.25% state rate in §13-203(b)(3).
| Tax | Rate | Repeat Buyer Sale | First-Time Buyer Sale |
|---|---|---|---|
| County recordation tax | $7.00 per $1,000 | $3,675.00 | $3,675.00 |
| County transfer tax | 1.0% | $5,250.00 | $5,250.00 |
| State transfer tax | 0.5% (0.25% first-time) | $2,625.00 | $1,312.50 |
| Total | — | $11,550.00 | $10,237.50 |
The county taxes do not change with buyer status in this example, because the county's rate page lists no first-time-buyer exemption. The entire difference comes from the state transfer tax.
What The Buyer Pays Versus The Seller
Applying the assumed 50/50 contract split to the repeat-buyer sale, and the statutory seller-pays rule to the first-time-buyer sale, produces the following shares:
| Tax | Repeat Buyer: Buyer Share | Repeat Buyer: Seller Share | First-Time Buyer: Buyer Share | First-Time Buyer: Seller Share |
|---|---|---|---|---|
| County recordation tax | $1,837.50 | $1,837.50 | $1,837.50 | $1,837.50 |
| County transfer tax | $2,625.00 | $2,625.00 | $2,625.00 | $2,625.00 |
| State transfer tax | $1,312.50 | $1,312.50 | $0.00 | $1,312.50 |
| Total | $5,775.00 | $5,775.00 | $4,462.50 | $5,775.00 |
In this illustration, the qualifying first-time buyer pays $1,312.50 less at closing, while the seller pays the same $1,312.50 in state transfer tax either way. What's more, the first-time rule removes the buyer's state transfer line entirely instead of simply shrinking it.
Illustrative only. The $525,000 price and the 50/50 split are assumptions for this example, and your purchase contract, your lender's figures and the county's current rates govern your actual closing costs.
The First-Time Maryland Buyer Rule In §13-203(b)
The state first-time-buyer rule is the single largest variable in this calculation, and it is narrower than many buyers expect. Accordingly, it is worth reading the conditions in the statute itself rather than relying on a summary.
Under Tax-Property §13-203(b), a first-time Maryland buyer who will occupy the home as a principal residence pays a 0.25% state transfer tax rate instead of 0.5%, and the seller pays the entire tax.
Here is what §13-203(b) requires, in the statute's own order:
- Definition, (b)(1). A first-time Maryland home buyer is an individual who has never owned Maryland residential real property that was the individual's principal residence. Owning a home in another state does not disqualify you under this definition.
- Every Grantee, (b)(2). The reduced rate applies only if each grantee is a first-time buyer, or is a co-maker or guarantor of the purchase money mortgage who will not occupy the home as a principal residence.
- Property And Occupancy, (b)(3). The sale must be of improved residential real property that the buyer will occupy as a principal residence. When it qualifies, the rate is 0.25% and the seller pays the entire state transfer tax.
- Sworn Statement, (b)(4) and (b)(5). Each grantee, or the grantee's agent, must sign a statement under oath confirming first-time status and occupancy. An agent's statement must be based on diligent inquiry.
Keep in mind that a co-buyer who once owned a Maryland principal residence and will live in the new home can knock the whole transaction out of the reduced rate. A parent co-signing the mortgage who will not move in, by contrast, does not disqualify the sale under (b)(2).
What The State Rule Does Not Cover
The §13-203(b) reduction applies to the state transfer tax only. It does not reduce Anne Arundel County's recordation tax or its 1.0% county transfer tax.
The county's rate page lists no first-time-buyer exemption from county recordation or transfer tax. Confirm any current county exemption with the Office of Finance before you budget around one.
If you are funding part of your down payment with family money, our guide to gift funds and lender documentation covers how those dollars are sourced before they reach the closing table. After all, the transfer-tax savings only help if the rest of the cash to close is documented.
Where Each Tax Lands On The Closing Disclosure
Federal disclosure rules dictate where these taxes appear, and knowing the layout lets you check the settlement agent's math line by line. Under Regulation Z §1026.38(g)(1), the Closing Disclosure must itemize each amount expected to be paid to state and local governments for taxes and government fees.
All three taxes land in Section E, Taxes and Other Government Fees, of the Closing Disclosure. Each is itemized with the assessing government and split into borrower-paid and seller-paid columns.
Here is how Section E is laid out for an Anne Arundel purchase:
- Line 01, Recording Fees. The first line shows the recording fees for the deed and for the mortgage (security instrument). These are recording fees, not taxes, and the county Land Records Office at (410) 222-1425 can confirm the current amounts.
- Subsequent Lines, Transfer Taxes. §1026.38(g)(1) requires an itemization of transfer taxes "with the name of the government entity assessing the transfer tax." Expect separate lines for the Anne Arundel County transfer tax, the Anne Arundel County recordation tax and the State of Maryland transfer tax.
- Borrower-Paid And Seller-Paid Columns. Official comment 38(g)(1)-2 says each tax is allocated to the columns as provided by state or local law, the legal obligation or the purchase contract. For a qualifying first-time buyer, that means the state transfer tax sits entirely in the seller-paid column.
In our worked example, a repeat buyer would see $1,837.50, $2,625.00 and $1,312.50 in the borrower-paid column of Section E. A qualifying first-time buyer would see $1,837.50 and $2,625.00 there, with the full $1,312.50 state transfer tax shown under seller-paid.
How To Check Section E Against The Contract
Before closing day, compare Section E to your purchase contract's tax allocation clause and your Loan Estimate. Here is a short checklist to work through:
- Confirm The Tax Base. Each tax should be calculated on the same consideration that appears on the deed. A mismatch usually points to a typo or a late price change.
- Confirm The Split. Your borrower-paid amounts should match the percentages your contract assigns to you. If the contract says 50/50 and Section E shows the full county transfer tax in your column, ask why.
- Confirm First-Time Treatment. If you signed the §13-203(b) sworn statement, the state transfer tax should appear only in the seller-paid column. Seeing it in the borrower-paid column is worth a question to the settlement agent.
All of these checks take only a few minutes with the contract and the Closing Disclosure side by side. Moreover, catching an allocation error before signing is far simpler than requesting a correction afterward.
How Anne Arundel Compares Across The Maryland Series
Anne Arundel's structure is one of several county models in Maryland. For example, Howard County's transfer tax, Montgomery County's transfer and recordation taxes, Prince George's County's transfer tax and Baltimore City's transfer tax each use their own rates and their own first-time-buyer rules.
Because the state transfer tax and the §13-203(b) reduction are identical statewide, the county taxes are where the real differences live. For the full picture of lender, title and prepaid costs that sit alongside these taxes, see our Maryland closing costs breakdown.
Overall, the Anne Arundel calculation comes down to three rates, one rounding rule and one contract clause. Once you know those inputs, you can rebuild your settlement agent's Section E figures yourself — and of course, a licensed settlement professional can confirm them for your specific transaction.
Frequently Asked Questions
Does the seller pay more when the buyer is a first-time Maryland buyer?
Under a 50/50 split, no. The seller pays half of the 0.5% rate either way, which equals the full reduced 0.25% tax the seller owes under §13-203(b)(3); only the buyer's state share disappears.
Does Anne Arundel round the recordation tax up?
Yes. The county charges $7.00 per $1,000, rounded up to the nearest $500, so a $525,100 price is taxed as $525,500 and produces $3,678.50 in recordation tax.
Does owning a home in another state disqualify me as a first-time Maryland buyer?
Not under §13-203(b)(1), which defines a first-time buyer as someone who has never owned Maryland residential property used as a principal residence. Every occupying co-buyer must also qualify.
Can a parent co-sign without losing the first-time state rate?
Yes, if the parent is a co-maker or guarantor of the purchase money mortgage who will not occupy the home. Section 13-203(b)(2) allows that, and the parent signs a sworn statement saying so.
Do these taxes appear on the Loan Estimate too?
Yes. The Loan Estimate shows estimated transfer taxes in its own Taxes and Other Government Fees section, so compare those estimates against Section E of the Closing Disclosure before closing.
This article is for informational purposes and is not financial / mortgage / contractor advice. Consult a licensed professional in your jurisdiction.
Rates verified against the Anne Arundel County Recordation and Transfer Tax Division page and Maryland Tax-Property §13-203 in October 2026.