If you’re preparing to sell your home in Baltimore County, understanding the costs involved is key to a smooth transaction. One expense you may encounter is the Baltimore County transfer tax, which is charged when real estate ownership changes hands. Transfer taxes are typically calculated as a percentage of the sale price, and state and local governments can assess them. Depending on where your property is located in Baltimore, you could owe state, county, and even city transfer taxes at closing. In this guide, we’ll explain how transfer taxes work in Baltimore County, including who typically pays them, what rates apply, and whether any exemptions exist. We’ll also show you how to estimate the amount you might owe, so there are no surprises when it’s time to close the deal. Real estate transfer taxes are charges assessed by the government when property ownership changes hands. According to the Federal Trade Commission, these taxes are typically imposed at the state or local level. They are payable when the title — the legal proof of property ownership — is transferred from the seller to the buyer. The amount you owe in transfer taxes depends on your property, with different rates set by state, county, and sometimes city authorities. Like other forms of taxation, transfer taxes help generate revenue for government services and infrastructure. Sellers should be aware of these potential costs to avoid surprises during the closing process. In Baltimore County, the responsibility for paying transfer taxes can fall to the buyer and the seller of a property, but it depends. The sales agreement contract can specify which party is responsible for the tax, but in lieu of that, Baltimore transfer taxes are split evenly between the buyer and the seller.What are transfer taxes?
Who pays for transfer taxes?
