Closing Costs in Maryland
The average closing cost in Maryland is $21,063, which is 4.67% of the home price. Maryland's transfer tax rate is 0.25% - 0.50%.
Maryland has some of the highest closing costs in the nation due to its layered transfer and recordation tax structure. The state transfer tax is 0.5% (with a reduced rate of 0.25% for first-time buyers), and the state recordation tax is $7.00 per $1,000 (0.7%). Local jurisdictions add their own recordation taxes — Montgomery County charges an additional $5.15 per $1,000 and Howard County charges $2.50 per $1,000. These taxes alone can reach 1.5-2% of the purchase price before any lender fees or other closing costs.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$21,063
As % of Price
4.67%
Transfer Tax
0.5%
Attorney Required
Yes
Closing Cost Breakdown for a $451,121 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $3,609 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $2,256 |
| Transfer Tax | $2,256 |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $677 |
| Prepaid Homeowners Insurance (1 year) | $1,353 |
| Prepaid Interest (15 days) | $964 |
| Estimated Total | $13,765 |
* Estimates based on average Maryland home price of $451,121 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Maryland
Claim First-Time Buyer Transfer Tax Discount
First-time Maryland homebuyers pay a reduced state transfer tax of 0.25% instead of 0.5%. This discount applies automatically when your attorney certifies your first-time buyer status on the settlement statement. On a $400,000 home, this saves $1,000.
Use Maryland Mortgage Program (MMP)
The Maryland Department of Housing and Community Development offers MMP with competitive rates and up to $5,000 in down payment assistance (or up to $10,000 for those buying in targeted areas). The program works with FHA, VA, and conventional loans.
Compare Costs Between Jurisdictions
Maryland's county-level recordation taxes vary significantly. Prince George's County charges $2.75 per $1,000 while Montgomery County charges $5.15 per $1,000. On a $500,000 purchase, this county difference alone equals $1,200.
Ask About Agricultural Transfer Tax Exemptions
If purchasing land that was previously in agricultural use, an agricultural transfer tax of 5% may apply on the first transfer out of agricultural use. However, owner-occupied residential purchasers are exempt from this tax — make sure your attorney applies the exemption.
Legal Context for Maryland Closings
Conveyance Document
Special-warranty deed
Security Instrument
Deed of trust; mortgages sometimes used
Foreclosure Process
Non-Judicial
Attorney Required
Yes
Maryland uses special-warranty deed for property transfers and deed of trust; mortgages sometimes used as the security instrument. An attorney is required at closing, which adds to your closing costs.
