Baltimore City is an independent city in Maryland, not part of any county. Real estate transfers in Baltimore involve three separate taxes: the Baltimore City transfer tax (1.50%) paid by the seller, the Maryland state transfer tax (0.50%) paid by the buyer, and the Baltimore City recordation tax ($5.00 per $500, or 1.00%) paid by the buyer. The combined total is 3.00% of the purchase price, making Baltimore one of the higher-tax jurisdictions in Maryland.
In Baltimore, transfer taxes are split between buyer and seller. The seller customarily pays the Baltimore City transfer tax (1.50%). The buyer pays the Maryland state transfer tax (0.50%) and the Baltimore City recordation tax (1.00%). First-time homebuyers may qualify for a reduced state transfer tax rate of 0.25%. These assignments may be negotiated in the purchase contract; buyers and sellers should confirm with their title company or real estate attorney.
Certain Baltimore real estate transactions may qualify for exemptions from one or more transfer taxes. First-time homebuyers may receive a reduction on the Maryland state transfer tax. Additional exemptions may apply to transfers to qualifying governmental entities, certain nonprofit transfers, and transfers with no monetary consideration. Consult a Maryland real estate attorney to determine whether your transaction qualifies for any exemptions.