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Transfer Taxes in Maryland
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Transfer Taxes in Maryland
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Maryland charges a "transfer tax" on every "instrument of writing" that is filed with the state. The definition of instrument of writing encompasses many documents, including deeds. In most cases, however, the definition of instrument of writing for purposes of transfer taxes does not include deed of trust or financing statements. This same rule does not apply for recordation taxes which are often owed on deeds of trust and financing statements. For more information on recordation taxes, go to the recordation taxes discussion posted at this site.
The state transfer tax in commercial transactions is .5%. In addition, most counties have a separate transfer tax that will be charged.
Special Exception: Local Taxes on Deeds of Trust. State transfer taxes will not be due on any deed of trust because all deeds of trust are exempt from state transfer tax laws. This exemption is not necessarily applicable at the county level. For example, in Prince George's County, Maryland, the county transfer tax (currently 1.4% of the amount secured) is charged on all deeds of trust, including indemnity deeds of trust, unless a special exemption applies under the Prince George's County Code. For more information on indemnity deeds of trust, go to the indemnity deeds of trust discussion posted at this site.
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