Many fees and taxes apply to the filing of quitclaim deeds in Maryland on federal, state, local levels. These include:
- Filing fees
- State transfer taxes
- County transfer taxes
- State recordation taxes
- Federal gift tax
- Capital gains tax
Research your specific county clerk’s office’s website to find out which taxes apply to your situation.
Filing Fees
Quitclaim deed filing fees in Maryland currently include both a base fee and a surcharge fee. Maryland land and property recording fees may differ by county, but are generally as follows:
| Service | Amount |
|---|---|
| A legal document involving only a principal residence, other than a release. | $60 |
| A legal document that is less than nine pages, other than a release or a document involving only a principal residence. | $60 |
| A legal document that is more than 10 pages, other than a legal document involving only a principal residence. | $115 |
| A release that is less than 9 pages. | $50 |
The above amounts include a $40 surcharge fee added on top of base prices for all recordable legal documents involving land except power of attorney, notice of sale, plats, and financing statements to be recorded in financing only.
Taxes
Many different types of taxes affect quitclaim deed filers in Maryland. Transfer taxes at the state and county level and recordation taxes may apply.
1. Documentary Transfer Tax (DTT)
Deeds transferring property require state and county transfer taxes (MDC Tax Prop. § 13-101) and state recordation tax differing by amount for each county (MDC Tax Prop. § 12-105).
The state transfer tax rate is 0.5% of the consideration, or value/purchase price, of the property. For deeds to a first time Maryland home buyer, the state transfer tax rate lowers to 0.25%.
Who Pays the Transfer Tax?
While in many other states, it’s customary for the grantor to cover taxes, splitting taxes between the two parties may be the better option in Maryland. Since more taxes apply to quitclaim deeds in the state, grantors and grantees can each pay an equal amount of the total taxes to make the process more affordable. However, either party can pay more or less taxes if agreed upon in a written contract.
Exemptions to Transfer Tax
See Tax Property Article, §13-207 for exemptions from tax. Some transfers are exempt from certain taxes, such as gifts of property to parents, children, or spouses (MDC Tax Prop. § 12-108).
The state itself, and many counties, also offer lower tax rates to certain groups — particularly first time home buyers. If this applies to your situation, check with your local Maryland county clerk of the circuit court to see if a lower transfer tax rate is available to you.
Tax Rates
While recordation tax amounts differ from county to county, their rates are decided at the state level. Some Maryland counties have their own transfer taxes on top of the state transfer tax, while others do not.
| County | Recordation Tax | County Transfer Tax |
|---|---|---|
| Allegany | $0 to $500 = $3.50; $500.01 to $1,000 = $7.00 | 0.5% of purchase price ($50,000 exemption if owner-occupied) |
| Anne Arundel | $7 per each $1,000 of consideration, rounded up to the nearest $500. | 1% on transactions up to $999,999.99; 1.5% for transactions of $1,000,000 or more. |
| Baltimore City | $5 per each $500 (or fraction thereof) of consideration. | 1.5% of consideration. |
| Baltimore County | $2.50 per each $500 (or fraction thereof) of consideration. | 1.5% of consideration. |
| Calvert | $5 per each $500 of consideration, rounded up to the nearest $500 | None |
| Caroline | $5 per each $500 of consideration, rounded up to the nearest $500 | 0.5% of consideration |
| Carroll | $5 per each $500 of consideration | None |
| Cecil | $4.10 per each $500 of consideration, rounded | 0.5% of consideration |
| Charles | $5 per each $500 of consideration | 0.5% of consideration |
| Dorchester | $5 per each $500 of consideration, rounded up to the nearest $500 | 0.75% of consideration (The first $30,000 of the consideration is exempt if the buyer is an owner occupant and the document is submitted with an affidavit of owner occupancy) |
| Frederick | $7 per each $500 of consideration | None |
| Garrett | $3.50 per each $500 of consideration | 1% of consideration |
| Harford | $6.60 per each $1,000 of consideration | 1% of consideration |
| Howard | $2.50 per each $500 (or fraction thereof) of consideration | 1.25% of consideration |
| Kent | $6.60 per each $1,000 of consideration | 1% of consideration |
| Montgomery | $8.90 per each $1,000 of consideration, rounded up to the next increment of $500 up to $500,000 | 1% of consideration |
| Prince George's | $5.50 per each $1,000 of consideration | 1.4% of consideration |
| Queen Anne's | $4.95 per each $500 of consideration | 0.5% of consideration |
| St. Mary's | $4 per each $500 of consideration | 1% of consideration |
| Somerset | $3.50 per each $500 (or fraction thereof) of consideration | None |
| Talbot | $6 per each $500 of consideration, rounded up to the nearest $500 | 1% of consideration |
| Washington | $3.80 per each $500 (or fraction thereof) of consideration | The first $50,000 of consideration is exempt, tax is 0.5% of remaining consideration |
| Wicomico | $3.50 per each $500 (or fraction thereof) of consideration | None |
| Worcester | $3.30 per each $500 of consideration, rounded up to the next higher $500 | 0.5% of purchase price ($50,000.00 exemption if owner-occupied) (If you pay agricultural tax the county tax does not apply to that portion of the property) |
2. US Gift Tax (Form 709)
Maryland does not have a state gift tax, so grantors need only consider the federal gift tax. To find out how much US gift tax is owed from a quitclaim deed or if you are exempt, complete IRS form 709.
3. Capital Gains Tax
Maryland has both short- and long-term capital gains taxes. The US also has federal capital gains taxes.
Since the federal gift taxes only apply if a property is sold for more than it was purchased for, and quitclaim deeds often involve little to no exchange of money, this may only come into effect when the grantee decides to sell the property later. IRS Topic No. 409 and IRS Publication 551 both discuss the topic in detail.
