Baltimore City Transfer and Recordation Taxes: What a Buyer Pays and Where It Lands on the Closing Disclosure

On a $235,000 Baltimore City rowhouse, the city and state together collect $7,050 in transfer and recordation taxes before any exemption is applied. That is roughly 3% of the purchase price, and it lands on the Closing Disclosure as one of the largest line items outside the loan itself.

Accordingly, buyers who budget only for the down payment and lender fees are often surprised at the settlement table. This guide walks through the governing code sections, one worked purchase with 2026 figures, and the exemptions that can shrink the buyer's share to zero.

The Three Taxes On A Baltimore City Deed

Three separate taxes attach to a deed recorded with the Clerk of the Circuit Court for Baltimore City. Each comes from a different code section, and each has its own exemption rules, so it helps to read them one at a time.

Here is how the rates break down, as published in the governing sections we reviewed in October 2026:

Tax	Rate	Governing section	Owner-occupant relief
City transfer tax	1.5% of the taxable basis	Baltimore City Code Art. 28, §17-2(a)	First $22,000 exempt if price is under $250,000 (§17-2(d))
City recordation tax	$5 per $500 or fraction of $500 of consideration	Baltimore City Code Art. 28, §16-1	First $22,000 exempt, no price cap (§16-2(a))
Maryland state transfer tax	0.5% of consideration	Md. Code, Tax-Property §13-203(a)(1)	0.25% rate, paid by seller, for first-time Maryland home buyers (§13-203(b)(3))

Keep in mind that the recordation rate is set locally under the authority of Tax-Property §12-103(b), which is why Article 28, §16-1 states it as a dollar amount per $500 rather than a percentage. Because the tax applies to each $500 "or fractional part of $500," a price that is not an even multiple of $500 rounds up to the next increment.

City Transfer Tax: Article 28, §17-2

Article 28, §17-2(a) imposes a 1½% tax on transfers of real property interests in the city. The tax must be paid to the Director of Finance before the deed is offered for recording, and a receipt is affixed to the instrument.

That 1.5% local rate is one of the highest in Maryland. The Department of Legislative Services' 2026 county and local tax rate tables list it alongside the rates in every other jurisdiction, and you can compare it with the structures we cover for Howard County transfer tax and Prince George's County transfer tax.

City Recordation Tax: Article 28, §16-1

The recordation tax is $5 for each $500 of the actual consideration, which works out to an effective 1% rate. The same section applies $5 per $500 to the principal of debt-securing instruments.

That said, a qualifying purchase money deed of trust is generally exempt under Tax-Property §12-108(i), so a buyer's new mortgage usually does not trigger a second round of recordation tax. Note that your settlement agent should confirm the deed of trust recites that it secures purchase money, since that recital is part of the exemption test.

Maryland State Transfer Tax: Tax-Property §13-203

Under Tax-Property §13-203(a)(1), as published in the 2026 statute text, the state transfer tax is 0.5% of the consideration. The consideration includes any mortgage the buyer assumes but excludes debt that is forgiven.

The state tax drops to 0.25% for a first-time Maryland home buyer, and the statute shifts the entire amount to the seller. We cover that rule in more detail below, because it is the single largest lever a Baltimore City buyer has.

Who Pays What: The Default Split

In an ordinary sale, Real Property §14-104(b) creates a presumption that the buyer and seller intended to share recordation tax and state and local transfer tax equally.

In practice, the purchase contract controls. If the contract is silent, the 50/50 presumption applies, and if the contract assigns a different split, the contract wins.

For a broader look at every fee that shows up at a Maryland settlement table, see our guide to Maryland closing costs. What's more, buyers looking at older city rowhouses should also read our explainer on Baltimore ground rent and your mortgage, since a ground-rent lot changes the title work at the same closing.

The $22,000 Owner-Occupant Exemptions

Baltimore City offers two partial exemptions for buyers who will live in the home. Both require the buyer to sign a statement under oath that the property will be the principal residence, occupied for at least 7 of the 12 months after the conveyance.

The two exemptions look alike, but they behave differently in two important ways:

• Price cap. The recordation exemption in Article 28, §16-2(a) has no price ceiling. The transfer tax exemption in §17-2(d) applies only when the total consideration is less than $250,000, and it applies to instruments acknowledged and presented for recording on or after July 1, 2007.
• Who receives it. Under §16-2(b), the buyer receives the entire recordation exemption regardless of how the contract divides the tax. The exception is when the seller has agreed to pay the whole tax or must pay it under §14-104(c), in which case the seller receives it.
• Allocation of the transfer exemption. Section 17-2(d) ties the allocation of the transfer tax exemption to the contract terms and to §14-104. Because the code does not hand it to the buyer outright, ask your settlement agent how they are applying it before you sign.

All of these rules add up to a real but modest benefit. The recordation exemption is worth $220, and the transfer exemption is worth $330, so the combined maximum is $550.

The $250,000 Cliff

Because the transfer exemption disappears entirely once the price reaches $250,000, the rule works as a cliff rather than a phase-out. A $249,000 purchase keeps the full $330 transfer exemption, while a $251,000 purchase loses all of it.

For instance, at a $255,000 price the city transfer tax is $3,825, the recordation tax after the exemption is $2,330, and the state transfer tax is $1,275. That totals $7,430 before the split, compared with $6,500 at $235,000.

Worked Example: A $235,000 Baltimore City Purchase

The example below uses a $235,000 owner-occupied purchase closing in 2026, with the rates from the code sections above. The tax rates come directly from the governing sections, while the split between buyer and seller depends on the contract, so treat the allocation rows as illustrative.

First, here are the calculator inputs you need before any of the math works:

• Purchase price (consideration). The contract price, plus any mortgage the buyer assumes.
• Owner occupancy. Whether the buyer will sign the 7-of-12-months principal residence statement.
• First-time Maryland home buyer status. Whether every grantee has never owned a principal residence in Maryland, or is a non-occupying co-maker or guarantor on the purchase loan.
• Contract allocation. Whether the contract is silent (50/50 presumption), assigns a different split, or includes a first-time buyer addendum.
• Price relative to $250,000 and $1 million. These two thresholds turn the transfer exemption off and the yield tax on, respectively.

Next, apply the rates. Here is the full calculation with both $22,000 exemptions in place:

Line	Calculation	Without exemptions	With owner-occupant exemptions
City transfer tax	1.5% × ($235,000 − $22,000)	$3,525.00	$3,195.00
City recordation tax	$5 × ($213,000 ÷ $500)	$2,350.00	$2,130.00
State transfer tax	0.5% × $235,000	$1,175.00	$1,175.00
Total		$7,050.00	$6,500.00

The $6,500 total equals approximately 2.77% of the price. Then comes the question every buyer actually cares about, which is how much of that total is theirs.

Scenario A: Repeat Buyer, Contract Silent

With no contrary contract term, §14-104(b) splits the taxes 50/50, and §16-2(b) gives the buyer the full $220 recordation exemption. In this illustration we also assume the $330 transfer exemption is shared evenly, which is an assumption your settlement agent should confirm.

On that basis, the buyer's share works out as follows:

• City transfer tax. Half of $3,525 is $1,762.50, less half of the $330 exemption, for $1,597.50.
• Recordation tax. Half of $2,350 is $1,175, less the buyer's full $220 exemption, for $955.00.
• State transfer tax. Half of $1,175, for $587.50.

The buyer's illustrative total is $3,140, and the seller's is $3,360. If the transfer exemption were allocated entirely to one side, the buyer's figure would move by $165 in either direction.

Scenario B: First-Time Maryland Home Buyer

Now assume the same purchase, but every grantee is a first-time Maryland home buyer who signs the sworn statement and will occupy the home. Under §13-203(b)(3), the state transfer tax falls to 0.25%, or $587.50, and the seller pays all of it.

In addition, §14-104(c)(1) requires the seller to pay the entire recordation tax and local transfer tax unless the parties expressly agree otherwise. With no such agreement, the buyer's share of all three taxes is $0, and the seller pays $5,912.50.

Be aware that sellers in Baltimore City sometimes negotiate that override, and the statute allows it for recordation and local transfer tax only. If the contract expressly restores a 50/50 split, the buyer would owe $955.00 in recordation tax and an illustrative $1,597.50 in city transfer tax, for $2,552.50, while the state transfer tax stays with the seller.

Buyers using state assistance should pair this with the program rules in our Maryland SmartBuy 3.0 and Maryland mortgage guides. After all, a down payment assistance award and a seller-paid tax allocation both show up on the same Closing Disclosure, and the lender reviews them together.

Where These Taxes Land On The Closing Disclosure

Federal disclosure rules place government recording charges and transfer taxes in Section E, "Taxes and Other Government Fees," on page 2 of the Closing Disclosure, under Regulation Z, 12 CFR §1026.38(g)(1). Each line shows a Borrower-Paid column and a Seller-Paid column.

Here is what to check on your Section E lines before closing day:

• Exemption applied. The city transfer and recordation figures should reflect the $22,000 deductions if you signed the owner-occupancy statement.
• Columns match the contract. In a first-time buyer purchase with no override, the Borrower-Paid column for these taxes should be blank.
• State rate. A first-time buyer purchase should show the state transfer tax at 0.25%, not 0.5%, in the Seller-Paid column.
• Purchase money deed of trust. Recordation tax on your new mortgage should not appear if the §12-108(i) exemption applies.

Remember that the Loan Estimate you received earlier shows these taxes as estimates in its own Section E. If the Closing Disclosure figure moved, the cause is usually a change in price, occupancy statement, or contract allocation, and it is worth asking the settlement agent which one.

Purchases Over $1 Million: The Yield Tax

Baltimore City adds an excise tax called the Yield Tax on transactions whose value exceeds $1 million. Under Article 28, §17.1-2(b), as amended by Ordinance 19-233 effective March 19, 2019, it equals 15% of the recordation tax and 40% of the city transfer tax collected.

The original ordinance included a residential purchase exemption in §17.1-1(b), but it covered only contracts signed within two years of the subtitle's effective date. Accordingly, a buyer above $1 million should confirm with the Department of Finance or the settlement agent how the Yield Tax applies to their deed today.

How Baltimore City Compares To Its Neighbors

Each Maryland jurisdiction sets its own local transfer and recordation structure, so the same price produces a different tax bill across a county line. For example, Montgomery County uses its own recordation tiers, while Howard and Prince George's apply their own local transfer rates.

If you are comparing homes on both sides of a border, our guides to Montgomery County transfer tax, Howard County transfer tax, and Prince George's County transfer tax walk through each one. Buyers relocating from Illinois will find a useful contrast in our breakdown of Chicago transfer tax for buyers.

A Decision Rule For Baltimore City Buyers

Overall, the biggest variable in what a Baltimore City buyer pays is first-time Maryland home buyer status, followed by the contract allocation and then the $22,000 exemptions. Price matters most near the $250,000 and $1 million thresholds.

Before you sign a contract, confirm whether every buyer qualifies as a first-time Maryland home buyer, read the tax allocation clause, and ask your agent whether the first-time buyer addendum is attached. Then check Section E of your Closing Disclosure against those three facts.

You may want to consider asking your settlement agent for a line-by-line tax worksheet a week before closing. Rates and exemptions in this guide come from the code sections cited above as published when we reviewed them in October 2026, so confirm current figures with the Baltimore City Department of Finance or your title company.

Frequently Asked Questions

Do I have to be a first-time buyer to get the $22,000 Baltimore City exemption?

No. The $22,000 recordation and transfer exemptions in Article 28, §§16-2 and 17-2(d) require owner occupancy for 7 of the next 12 months, not first-time buyer status.

Does Maryland charge recordation tax on my new purchase mortgage?

Generally not. Tax-Property §12-108(i) exempts a qualifying purchase money deed of trust delivered in the same transaction as the deed and reciting that it secures purchase money.

Can a seller refuse to pay the first-time buyer's recordation and city transfer tax?

Only by express agreement. Real Property §14-104(c)(1) lets the parties agree otherwise for recordation and local transfer tax, but §14-104(c)(2) keeps the state transfer tax with the seller.

What if one co-buyer owned a Maryland home before?

The first-time buyer treatment is lost for the whole deed unless that person is a non-occupying co-maker or guarantor on the purchase loan, under §13-203(b)(2) and §14-104(c)(4).

When is the Baltimore City transfer tax actually paid?

Under Article 28, §17-2(b), it is due before the deed is offered to the Clerk of the Circuit Court for recording. The settlement agent collects it at closing and remits it to the Director of Finance.

This article is for informational purposes and is not financial / mortgage / contractor advice. Consult a licensed professional in your jurisdiction.