Montgomery County Transfer and Recordation Taxes: What Sellers Pay in 2026
How much are transfer and recordation taxes for a seller in Montgomery County, Maryland?
A Montgomery County seller pays three separate taxes: half the recordation tax, half the 1% county transfer tax, and half the 0.5% state transfer tax. On a $1.5 million sale, that is about $12,355, $7,500 and $3,750.
Transfer and recordation taxes are the largest government charge on a Montgomery County settlement statement, and they surprise sellers more than any other line. Commission is a number you negotiated. Transfer taxes are set by the county and the state, they climb with price, and on a Bethesda or Chevy Chase, Maryland house they can reach five figures before anything else comes off your proceeds.
The good news is that they are predictable. Once you know the three taxes, how the county’s tiers work, and how the cost is split between buyer and seller, you can estimate your number to within a few hundred dollars before you ever list. Here is how it works in 2026, in plain terms, with worked examples at the price points I see most often in Bethesda, Chevy Chase MD, and Silver Spring.
The Three Taxes on a Montgomery County Sale
When a home sells in Montgomery County, three taxes are charged at settlement as the deed is recorded in the county land records:
- Maryland state transfer tax — 0.5% of the sale price.
- Montgomery County transfer tax — 1% of the sale price.
- Recordation tax, collected by Montgomery County — a tiered rate that rises with price. This is the one that grows fastest on higher-priced homes.
You do not write a separate check for any of them. Your title or settlement company collects them at closing and takes your share straight out of your proceeds, and they appear as separate lines on your settlement statement. If you have sold in Washington DC before, the structure is different there; I cover the District in DC transfer tax for sellers in 2026.
How the Recordation Tax Tiers Work
The Montgomery County Council raised recordation rates on higher-priced homes in late 2023. The tax is charged per $500 of price, and each tier applies only to the slice of the price that falls inside it, the way income tax brackets work:
| Slice of the sale price | Rate per $500 | Effective rate on that slice |
|---|---|---|
| Up to $500,000 | $4.45 | 0.89% |
| $500,000 to $600,000 | $6.75 | 1.35% |
| $600,000 to $750,000 | $10.20 | 2.04% |
| $750,000 to $1,000,000 | $10.78 | 2.16% |
| Above $1,000,000 | $11.35 | 2.27% |
There is one break that applies to most sales: when the buyer will live in the home as their primary residence, the first $100,000 of the price is exempt from recordation tax. That takes $890 off the total, or about $445 off each side. So on a $1.5 million sale to a buyer who will live there, the recordation tax comes to $24,710 in all. That is why the recordation tax, not the transfer taxes, is the biggest of the three on most homes in Bethesda and Chevy Chase MD.
Who Pays: Buyer and Seller Split It 50/50
In Montgomery County, buyer and seller split all three taxes equally. Each side pays half of the state transfer tax, half of the county transfer tax, and half of the recordation tax. Settlement statements from Bethesda closings show exactly that: the same dollar figure on the buyer’s side and the seller’s side for each of the three lines.
The one exception is a first-time Maryland homebuyer, covered below. I walk through the rest of the contract-to-closing timeline in what happens after a seller accepts an offer.
What It Costs a Seller: Worked Examples
Here is what the seller pays for each of the three taxes at the price points that cover most sales in Bethesda, Chevy Chase, and Silver Spring, with a buyer who will live in the home:
| Sale price | Recordation tax (seller’s half) | County transfer tax (seller’s half) | State transfer tax (seller’s half) | Seller’s total | Share of price |
|---|---|---|---|---|---|
| $800,000 | $4,524 | $4,000 | $2,000 | $10,524 | 1.32% |
| $1,000,000 | $6,680 | $5,000 | $2,500 | $14,180 | 1.42% |
| $1,500,000 | $12,355 | $7,500 | $3,750 | $23,605 | 1.57% |
| $2,000,000 | $18,030 | $10,000 | $5,000 | $33,030 | 1.65% |
| $2,500,000 | $23,705 | $12,500 | $6,250 | $42,455 | 1.70% |
Read across any row and the recordation column is the one that pulls ahead as prices rise; the two transfer taxes stay flat percentages. A seller in Sumner or Bannockburn at $2 million pays a noticeably larger share than a seller in Silver Spring at $800,000, even though both pay the same 1% county transfer rate and 0.5% state transfer rate.
Comparing Against an Older Settlement Statement
If you pull out the settlement statement from when you bought, or from a sale before late 2023, the recordation line will look much smaller. That is the rate increase, not a mistake. On a $1.5 million sale to a buyer who will live in the home, the seller’s half of the recordation tax was about $8,530 under the old rates and is about $12,355 today. The two transfer taxes have not changed.
When the Buyer Is a First-Time Maryland Homebuyer
Maryland gives first-time homebuyers a break on the state transfer tax. The tax drops from 0.5% to 0.25%, and the seller pays that 0.25%. On a settlement statement it shows up as a single state transfer tax line on the seller’s side and nothing on the buyer’s. For you, the dollars come out the same as your usual half; the saving goes to the buyer. Federal Title & Escrow has a clear explainer on how the first-time buyer rule works.
If an offer comes in from a first-time buyer, the practical point is simply to confirm with your settlement company how the taxes will be allocated, so the numbers on your estimate match the numbers at the table.
Where These Taxes Fit in Your Net Proceeds
Transfer and recordation taxes are one line in a longer list. Your settlement statement will also show your mortgage payoff, commission, the property tax proration, the deed preparation and settlement fees, and any credits you agreed to give the buyer. I break down the full picture in how to estimate seller net proceeds in DC, Maryland and Virginia.
For income tax purposes, transfer taxes a seller pays are generally treated as a selling expense, which reduces the gain on the sale. The IRS covers this in Publication 523, Selling Your Home. Your own situation is a question for your CPA; I am not a tax advisor.
Can You Lower the Bill?
No. The rates are fixed and the tax follows the price, so the real levers are elsewhere:
- Price and prepare so the net is right. A home that sells well the first time protects your proceeds far more than any tax line. My approach to staging a Bethesda home as an interior designer and my concierge pre-listing model both start there.
- Get the estimate early. I build a line-by-line net sheet, taxes included, before we set a price, so there are no surprises at settlement.
If you are weighing a sale in Glen Echo Heights, Tulip Hill, Georgetown Village, or anywhere else in Montgomery County, start with a home value conversation and my seller’s guide. If you are also comparing the Maryland and DC sides of Chevy Chase, this comparison covers how the two differ.
Frequently Asked Questions
How much are transfer and recordation taxes in Montgomery County, Maryland?
Three taxes apply: the Maryland state transfer tax at 0.5%, the Montgomery County transfer tax at 1%, and the county recordation tax, which rises in tiers to $11.35 per $500 on the portion of the price above $1 million. When the buyer will live in the home, the first $100,000 is exempt from recordation tax. Each is a separate line on the settlement statement, and the seller pays half of each.
Who pays transfer taxes in Montgomery County, the buyer or the seller?
Buyer and seller split all three taxes 50/50, so each pays half of the recordation tax, half of the county transfer tax and half of the state transfer tax. When the buyer is a first-time Maryland homebuyer, the seller pays the reduced 0.25% state transfer tax on their own.
How much will I pay in transfer taxes selling a $1.5 million home in Bethesda?
With a buyer who will live in the home, the seller pays about $12,355 in recordation tax, $7,500 in county transfer tax and $3,750 in state transfer tax, or about $23,605 across the three.
Why is the recordation tax higher than the transfer tax on expensive homes?
Montgomery County’s recordation tax is tiered. The rate on the slice of the price above $1 million is about 2.27%, more than double the 1% county transfer tax, so it becomes the largest of the three taxes as prices rise.
Does a first-time homebuyer change what the seller pays?
No. For a qualifying first-time Maryland homebuyer, the state transfer tax drops to 0.25% and the seller pays it, which is the same amount as the seller’s usual half. The saving goes to the buyer.
Why is my old settlement statement’s recordation tax so much lower?
Montgomery County raised recordation rates on homes above $600,000 in late 2023. On a $1.5 million sale, the seller’s half of the recordation tax rose from about $8,530 to about $12,355. The state and county transfer taxes did not change.
When are transfer and recordation taxes paid?
They are paid at settlement. The title or settlement company collects them and deducts the seller’s share from the sale proceeds, so the seller does not pay them separately.
Sources: Montgomery County Council, recordation tax rate update; Montgomery County Department of Finance, county taxes information; Starfield & Smith, calculating Maryland recording taxes (2026); ATG Title, Maryland transfer tax guide; Federal Title & Escrow, first-time homebuyer exemption; Montgomery Planning Board, 2023 recordation tax bill staff report; IRS Publication 523. Rates current as of September 2026. This article is general information, not legal or tax advice.
If you are thinking about selling in Bethesda, Chevy Chase MD, or Silver Spring, I would be glad to build your net sheet with you. Call or text me at 202.536.4043, or reach out here. Sherine is here whenever you’re ready.
About Sherine Monir
Sherine Monir is a Realtor with Compass and also a licensed Interior Designer in DC (NCIDQ, CID, ASID). She represents sellers and buyers across Upper Northwest DC, Bethesda, Chevy Chase MD, Arlington, Alexandria, and McLean. She is named to RealTrends America’s Best 2026, a Washingtonian Elite Producer, and a Bethesda Magazine Top Producer.
Recent Posts
