Closing Costs in DC, Maryland, and Virginia: What Buyers and Sellers Actually Pay
One of the most common moments of sticker shock in the DMV home buying process happens at the settlement table when buyers see the total cash required to close. Not because the mortgage payment is different from what they budgeted. Because the closing costs were significantly higher than they expected.
Here is the complete, honest breakdown of what buyers and sellers actually pay in closing costs in Washington DC, Maryland, and Northern Virginia in 2026.
Why DMV Closing Costs Are Higher Than Most Markets
The DMV sits in three jurisdictions, each with its own transfer and recordation tax structure. These government-mandated taxes represent the largest variable in closing costs and can swing your total out-of-pocket costs by $15,000 to $30,000 on a median-priced home depending solely on which side of the state line you are on.
Virginia is consistently the winner for lowest buyer closing costs in the DMV. On a $1,000,000 home, a buyer in DC might pay up to $50,000 in closing costs, while a buyer in Virginia might pay as little as $20,000. That gap is almost entirely driven by the difference in transfer and recordation taxes.
What Buyers Pay in Washington DC
For buyers purchasing in Washington DC, total closing costs typically range from 3% to 5% of the purchase price depending on loan type, down payment, and negotiated seller credits.
The largest variable cost specific to DC is the recordation tax. DC charges buyers a recordation tax of 1.1% for homes priced under $400,000 and 1.45% for homes priced at $400,000 and above. On a $600,000 DC purchase, the buyer's recordation tax alone is $8,700.
DC also has a homestead deduction for primary residences that reduces assessed value by $91,950 in 2026, which benefits long-term owners but does not directly affect closing costs.
First-time buyers in DC may qualify for a recordation tax reduction. The DC first-time homebuyer recordation tax rate is 0.725% rather than 1.45% for eligible buyers on homes purchased as a primary residence.
Standard buyer closing costs in DC include: lender origination fees, appraisal fee ($500 to $700), title insurance, recordation tax, settlement/closing fee, prepaid property taxes, prepaid homeowner's insurance, and prepaid mortgage interest. Total: typically $18,000 to $30,000 on a $500,000 to $600,000 DC purchase.
What Sellers Pay in Washington DC
DC sellers pay the transfer tax at the same rates: 1.1% for homes under $400,000 and 1.45% for homes at $400,000 and above. DC's combined transfer and recordation tax rates of 2.2% to 2.9% total for buyer and seller are among the highest in the DMV region.
DC sellers also pay any agreed-upon agent commissions, title and settlement fees, and prorated property taxes. Total seller closing costs in DC typically run 6% to 9% of the sale price when agent commissions are included.
Important DC note: Washington DC does not require an attorney for real estate transactions. Closings are handled by licensed title companies.
What Buyers Pay in Maryland
Maryland's closing cost structure is more complex than either DC or Virginia because of the layered combination of state and county-level transfer and recordation taxes.
Maryland state transfer tax for buyers: 0.5%, though this is typically waived for first-time buyers purchasing their principal residence, a saving of approximately $4,000 on an $800,000 home that many buyers do not know to ask about.
County-level transfer and recordation taxes vary significantly. Prince George's County charges a combined recordation and transfer tax of approximately 0.975% of the purchase price payable by the buyer. Charles County is similar. Montgomery County uses a tiered recordation tax that increases with sale price, ranging from lower rates at sub-$500,000 price points to over 2% at higher price points, making it one of the most expensive Maryland counties for real estate transactions.
In Maryland, transfer and recordation taxes are customarily split 50/50 between buyer and seller, though this allocation is negotiable.
Total Maryland buyer closing costs: typically 2% to 5% of the purchase price depending on county, loan type, and whether first-time buyer tax exemptions apply.
Maryland is a title company state. Settlements are conducted by licensed title companies rather than attorneys in most standard residential transactions.
What Sellers Pay in Maryland
Maryland sellers pay the state transfer tax (0.25% seller share after the 50/50 split), their share of county transfer and recordation taxes, agent commissions, title and settlement fees, and prorated property taxes.
Total seller closing costs in Maryland typically run 6% to 9% of the sale price with agent commissions included. On a $660,000 Montgomery County home (near the county median), total seller costs can range from $43,000 to $55,000.
Maryland sellers who own investment properties rather than primary residences are subject to an 8% withholding tax on proceeds from the sale, collected at closing and remitted to the Maryland Comptroller. This can be refunded via tax return filing but represents a significant upfront cash flow consideration.
What Buyers Pay in Northern Virginia
Virginia consistently offers the lowest buyer closing costs in the DMV due to significantly lower transfer and recordation taxes relative to DC and Maryland.
Virginia buyer closing costs typically range from 2% to 3% of the purchase price. Standard costs include: lender origination fees, appraisal fee, title insurance, state recordation tax (0.25% of the loan amount), county-level taxes that vary by jurisdiction but are generally lower than Maryland or DC, settlement fee, and prepaids.
In Arlington County and Fairfax County, regional congestion relief fees add a modest additional cost, but Virginia buyers still come out well ahead of their DC and Maryland counterparts on government-mandated transaction costs.
What Sellers Pay in Northern Virginia
Virginia sellers pay a grantor's tax (often called the state transfer tax) at 0.1% of the sale price, regional congestion relief fees in Northern Virginia localities, agent commissions, title and settlement fees, and prorated property taxes.
Total Northern Virginia seller closing costs typically run 6% to 8% of the sale price with agent commissions included, slightly below Maryland and DC seller costs because the transfer tax burden falls more heavily on buyers in Virginia.
How to Reduce Closing Costs in Any DMV Jurisdiction
Negotiate seller credits. In any DMV market where buyers have leverage, asking the seller to contribute to closing costs is a legitimate and frequently successful strategy. Seller credits for closing costs can be included in your offer and reduce your cash required at closing. VA loans allow essentially unlimited seller concessions for closing costs, making this strategy particularly powerful for VA buyers.
Ask about first-time buyer exemptions. In Maryland and DC, first-time buyers are eligible for transfer tax reductions that can save thousands. Make sure your agent and lender know you are a first-time buyer so these are applied correctly.
Shop your title company. In the DMV, buyers have the right to choose their own title and settlement company. Getting quotes from two or three reputable companies can save $500 to $1,500 in settlement fees.
Visit donnellwilliams.com/first-time-buyers for information on programs that can help offset closing costs in your specific DMV jurisdiction. Book your free consultation at donnellwilliams.com/donnells-calendar to get a property-specific closing cost estimate before you submit any offer.
Published as part of our June Homeownership Month series. New posts every day throughout June covering everything DMV buyers, renters, and homeowners need to know about the local market.
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