Estimate transfer & recordation taxes for DC, MD & VA
This calculator provides estimates only and should not be relied upon for legal, financial, or tax advice. Actual amounts may vary based on specific transaction details, exemptions, or rate changes. Always verify final amounts with your title company, settlement agent, or attorney before closing.
When buying or selling a home in the Washington DC metropolitan area, transfer and recordation taxes represent a significant portion of your closing costs. These government-imposed taxes vary considerably by jurisdiction—what you pay in Montgomery County, Maryland differs from Fairfax County, Virginia or Washington, DC. Our calculator above helps you estimate these costs accurately so you can plan your home purchase or sale with confidence.
Transfer taxes are fees charged by state and local governments when real property changes ownership. Think of them as the cost of officially transferring the deed from seller to buyer. Both Maryland and DC impose transfer taxes, while Virginia uses a grantor’s tax system instead.
Recordation taxes (sometimes called recording taxes or deed stamps) are charged when documents like deeds and mortgages are recorded in the public land records. These taxes apply to both the property purchase price and any mortgage amount being recorded.
Montgomery County has some of the most complex recordation tax rates in the region, thanks to Bill 17-23 which took effect October 1, 2023. The county uses a progressive, tiered system where higher-priced properties pay more per dollar.
The recordation tax is calculated in tiers, with each bracket applying only to the portion of the sale price within that range:
For owner-occupied principal residences, Montgomery County offers an $890 recordation tax credit, which our calculator automatically applies when you select “Principal Residence.”
Prince George’s County uses a simpler flat-rate structure but has a higher county transfer tax rate than Montgomery County.
Note that Prince George’s County is unique in Maryland—the county transfer tax also applies to mortgages and deeds of trust, not just deeds.
Washington, DC uses a two-tier system based on whether the property value is above or below $400,000.
In DC, the seller typically pays the transfer tax while the buyer pays the recordation tax. First-time DC homebuyers may qualify for a reduced recordation tax rate on properties up to $753,000 (as of tax year 2025).
Virginia structures its taxes differently than Maryland and DC. Instead of a transfer tax, Virginia uses a “grantor’s tax” paid by the seller, while buyers pay recordation taxes.
The Northern Virginia grantor’s tax and congestion relief fee apply specifically to properties in Fairfax County, Arlington County, Loudoun County, Prince William County, and the City of Alexandria.
The allocation of transfer and recordation taxes varies by jurisdiction and is often negotiable:
In a competitive market, buyers sometimes offer to pay a larger share of transfer taxes to make their offer more attractive. Conversely, sellers motivated to close quickly may offer to cover more of the taxes.
Each jurisdiction offers benefits for first-time homebuyers:
First-time Maryland homebuyers purchasing a principal residence pay a reduced state transfer tax rate of 0.25% instead of 0.50%. This effectively eliminates the buyer’s half of the state transfer tax. To qualify, you must not have previously owned a principal residence in Maryland.
DC offers a reduced recordation tax rate for qualified first-time homebuyers. For tax year 2025, the property purchase price cannot exceed $753,000, and income limits apply. The reduced rate can save thousands of dollars at closing.
Virginia does not offer a specific first-time homebuyer exemption for transfer or recordation taxes at the state level.
When refinancing your mortgage, you’ll typically pay recordation taxes only on the new debt—the difference between your new loan amount and your existing loan payoff. This is a significant savings compared to a purchase transaction.
For example, if you’re refinancing from a $400,000 loan balance to a $450,000 loan, you’ll only pay recordation tax on the $50,000 difference (the “new money”).
Use the “Refinance” tab in our calculator above to estimate your refinance recordation costs.
Transfer and recordation taxes in Montgomery County typically total between 2% and 3% of the purchase price, depending on the home’s value. For a $750,000 home, expect approximately $18,000-$22,000 in transfer and recordation taxes alone. Additional closing costs like title insurance, lender fees, and prepaid items can add another 1-2%.
Transfer taxes paid by the buyer are not directly tax deductible, but they are added to your cost basis in the property, which can reduce capital gains taxes when you sell. Transfer taxes paid by the seller reduce the net proceeds from the sale. Consult a tax professional for advice specific to your situation.
Transfer and recordation taxes are typically paid at closing from the buyer’s funds and cannot be financed as part of a conventional mortgage. However, in some cases, sellers may offer closing cost credits that effectively help cover these expenses.
Transfer tax is charged specifically on the transfer of property ownership (the deed). Recordation tax is charged on recording any document in the land records, including both deeds and mortgages. In practice, buyers pay recordation tax on both the purchase price and any mortgage amount.
Montgomery County uses a tiered system based on Bill 17-23. The recordation tax is calculated in increments of $500, with different rates applying to different portions of the sale price. Our calculator above handles this complex calculation automatically—simply enter your sale price to see the breakdown.
On a refinance, the homeowner (borrower) pays the recordation tax. However, the tax only applies to the new debt amount—the difference between your new loan and your existing loan payoff—not the full loan amount.
Understanding transfer and recordation taxes is an essential part of budgeting for your home purchase. These costs can add tens of thousands of dollars to your closing expenses, so it’s important to factor them into your planning from the start.
At Paramount Construction, we help clients navigate the entire home buying and building process throughout Montgomery County, Bethesda, Chevy Chase, Potomac, and the greater DC Metro area. Whether you’re purchasing an existing home, buying a lot to build on, or exploring custom home construction, our team can guide you through financing options, lot selection, floor plans, and realistic pricing.
Ready to discuss your new home plans? Schedule a consultation to explore your options for building or buying in the DC Metro area.e DC Metro area.