Are you buying or selling a home in Anne Arundel County? If so, you might have a lot of questions about closing costs, especially transfer taxes. Does Anne Arundel County even have a transfer tax? How much is it? Who is responsible for paying it? How do transfer taxes work in Maryland? This guide will explain how the Anne Arundel County transfer tax works: what it costs and who pays for it. We will also provide a list of exemptions you might qualify for and break down how transfer taxes apply to capital gains. Real estate transfer taxes are charged by state or local governments when property ownership is transferred from one individual to another. According to the Federal Trade Commission, these taxes are due when the title of a property, essentially the document that verifies your legal ownership, is officially transferred to a new owner. This can occur through sales, inheritance, or gifting of property. The amount owed in transfer taxes can vary significantly based on the property’s location. Different states, counties, and cities establish their rates and regulations for these taxes. Transfer taxes primarily serve as a means for local and state governments to generate revenue, which helps fund various public services and infrastructure projects. Both the buyer and the seller of a property are responsible for transfer taxes in Anne Arundel County. Typically, the buyer and the seller (sometimes referred to as the “grantee” and “grantor”, respectively) will split these costs, which are usually negotiated as part of the sales agreement. This is generally true for all Maryland real estate transactions, but will vary based on the location. There are also several exemptions that can apply, which we will discuss later in this guide.What are transfer taxes?
Who pays for transfer taxes?
