Not sure who pays transfer and recordation taxes in Howard County or how they affect your bottom line? You are not alone. These line items can be confusing, and they matter for both your budget and your net proceeds. In this guide, you will learn what each tax is, who typically pays what in Howard County, how the fees appear on your Closing Disclosure, and how to estimate numbers with simple examples. Let’s dive in.
Key definitions you can trust
Transfer tax
The transfer tax, sometimes called a conveyance tax, applies when property ownership changes hands. It is typically calculated as a percentage of the purchase price and is assessed once at conveyance. By local custom in Maryland, the seller often pays the transfer tax, but your contract controls the final allocation.
Recordation tax
Recordation tax is charged when documents are recorded in county land records. There can be a recordation charge for the deed and another for the mortgage. If you finance your purchase, the mortgage recordation tax usually applies to the principal amount of the loan, not the full purchase price. The deed portion can interact with whether transfer tax is paid and how the county applies its rules.
Recording fees
Recording fees are flat, clerical charges to file documents. These are separate from taxes and are usually modest. You will see them listed per document or per page.
Who usually pays in Howard County
- Seller typically pays the transfer or conveyance tax by local custom. That said, you can negotiate a different split in the purchase contract.
- Buyer typically pays mortgage-related recordation taxes if there is a loan. If you pay cash, mortgage recordation tax would not apply.
- Recording fees and title-related charges are allocated by contract. The Closing Disclosure will show which party pays each item.
- If you negotiate seller concessions, the seller might cover some of the buyer’s closing costs. That can include recordation and recording items. Always confirm with the title company and your written contract.
Where these costs show on your Closing Disclosure
On the Closing Disclosure, look for a section labeled Taxes and Other Government Fees or line items under Recording fees and other taxes. Typical labels include:
- Transfer Taxes or State & County Conveyance Tax
- Recordation Tax — Deed
- Recordation Tax — Mortgage
- Recording Fees
The CD has separate buyer and seller columns, so you can see exactly who is paying which amount. The seller’s transfer tax reduces the seller’s net proceeds. Buyer-paid items appear as amounts due at closing, or they may be rolled into the loan when allowed.
Hypothetical examples for budgeting
These illustrations are for education only. Rates and allocations change. Always confirm current numbers with your title company before you budget.
Example A: $400,000 purchase (illustrative only)
- Hypothetical transfer or conveyance tax at 1.0%: $4,000
- Buyer finances 80%: $320,000 mortgage
- Hypothetical mortgage recordation tax at 0.5% of mortgage: $1,600
- Recording fees example: $120
- Illustrative impact:
- Seller pays transfer tax: seller net reduced by $4,000
- Buyer pays mortgage recordation plus recording: $1,720
Example B: $600,000 purchase (illustrative only)
- Hypothetical transfer or conveyance tax at 1.0%: $6,000
- Buyer finances 75%: $450,000 mortgage
- Hypothetical mortgage recordation tax at 0.5% of mortgage: $2,250
- Recording fees example: $150
- Actual allocation depends on the contract and title company calculations.
Exemptions and special cases to know
- Certain exempt transfers. Transfers to or from spouses, transfers ordered by a court, and some fiduciary transfers can qualify for exemptions. Documentation is required.
- Refinances. A refinance can trigger recordation tax on the new mortgage but usually does not involve a deed transfer tax if ownership does not change.
- Nominal or internal transfers. Some entity or nominal consideration transfers may be treated differently based on statute.
- Program and credit checks. There is no general statewide first-time seller waiver for conveyance taxes. Check for any local or temporary programs with the county or your title company.
- Deed versus mortgage interactions. Depending on statutes and county practice, paying one tax can affect how another is applied. Your title company will handle the technical calculations.
Budgeting checklist for buyers and sellers
- Ask early who pays the transfer tax in your deal. Confirm what is customary and what your contract states.
- If you are financing, request a lender estimate that includes borrower-paid recordation taxes and recording fees.
- Ask your title company for a preliminary settlement statement or sample Closing Disclosure with line-item breakdowns.
- Plan for taxes and standard closing costs, including title insurance, settlement fees, prorations, HOA dues, and recording fees.
- If you are offering or requesting concessions, clarify whether they cover recordation or recording fees.
How to get exact figures for your address
- Contact a local title or settlement company and request an itemized estimate based on your purchase price and loan amount.
- Confirm current state and county transfer and recordation tax rates, and ask about any local surcharges or exemptions.
- Ask for the per-document and per-page recording fees for the deed and mortgage.
- Have the title officer show where each item will appear on your Closing Disclosure and in which column.
- Use the lender’s Closing Disclosure and the title company’s settlement statement as your final sources for exact amounts due.
Local guidance from a trusted team
You deserve clarity before you sign. Our team coordinates closely with local title partners to deliver accurate, line-by-line estimates early, then we review your Closing Disclosure to make sure every government fee is correct and allocated as agreed. If you are selling, we help you forecast net proceeds with the transfer tax included. If you are buying, we help you plan for mortgage recordation tax and any recording charges so there are no surprises at the closing table.
Ready to run your numbers with confidence or get a personalized estimate for your address? Reach out to the Nancy Hulsman Group for clear guidance and a coordinated path to closing.
FAQs
What are transfer and recordation taxes in a Howard County home purchase?
- Transfer tax applies to the change of ownership, while recordation tax applies when the deed and mortgage are recorded, with mortgage recordation often based on the loan amount.
Who usually pays Howard County transfer tax in a sale?
- By local custom the seller typically pays the transfer or conveyance tax, but the final allocation is negotiable and controlled by your contract.
How will these taxes appear on my Closing Disclosure?
- They usually show under Taxes and Other Government Fees with line items for transfer taxes, deed recordation, mortgage recordation, and recording fees in buyer and seller columns.
Do first-time buyers get a blanket exemption from these taxes in Howard County?
- There is no general statewide blanket exemption for first-time buyers, so you should ask your title company about any current local programs or specific exemptions that may apply.
How do refinance costs differ from a home sale in Howard County?
- A refinance typically involves recordation tax on the new mortgage but usually not a deed transfer tax because ownership does not change.
Are the example rates in this guide the actual Howard County rates?
- No, the examples are illustrative only, so always confirm current rates and your exact allocation with your title company before budgeting.
