Prince George's County Transfer and Recordation Tax (Part 7 of 30: The Prince George's County Answer Guide)
This is Part 7 of The Prince George's County Answer Guide from Donnell Williams Jr. and DMV Prime Properties, a 30-part series answering the questions buyers, sellers, and people relocating are actually searching about Prince George's County, Maryland.
How does Prince George's County transfer and recordation tax work? Three taxes apply at recording: a 1.4% county transfer tax, a $2.75 per $500 county recordation tax, and a 0.5% state transfer tax, about $11,025 on a $450,000 home. Maryland splits them equally by default, but a qualifying first-time buyer pays none unless the contract expressly says otherwise.
Key Takeaways
- According to the Prince George's County FY2027 budget, the county transfer tax rate is 1.4% and the recordation tax rate is $2.75 per $500, both unchanged for FY2027.
- The Maryland state transfer tax is 0.5% of the price. For a qualifying first-time Maryland homebuyer, it drops to 0.25% under Md. Tax-Property §13-203.
- On a $450,000 purchase, county transfer tax is $6,300, county recordation tax is $2,475, and state transfer tax is $2,250, for $11,025 total before any exemption.
- Under Md. Real Property §14-104(c), the seller pays all recordation tax, county transfer tax, and state transfer tax when selling to a qualifying first-time buyer, unless the contract expressly provides otherwise. For other buyers, §14-104(b) presumes an equal split.
What Is the Difference Between Transfer Tax and Recordation Tax?
Both taxes are collected when the deed is recorded in the Prince George's County Land Records, and both are based on the price paid.
- Transfer tax is a tax on the transfer of ownership. Prince George's County charges one, and the State of Maryland charges a separate one.
- Recordation tax is a tax on recording the deed (and certain other documents) in the county land records. In Maryland, the county sets this rate. Prince George's County charges $2.75 for every $500 of consideration, which equals $5.50 per $1,000.
The settlement company collects these taxes at closing, and each appears as a separate line on the Closing Disclosure.
What Are the Prince George's County Transfer and Recordation Tax Rates in 2026?
The Maryland Department of Legislative Services county tax rate tables list the Prince George's County transfer tax at 1.4% and the recordation tax at $2.75 per $500 for every fiscal year from FY2022 through FY2027. The county's FY2027 budget confirms both rates are unchanged.
Combined, the county and state taxes come to 2.45% of the price before any exemption, one of the largest items in a Prince George's County closing.
Sample Math: Transfer and Recordation Tax on a $450,000 Purchase
The Prince George's County Association of REALTORS (PGCAR) April 2026 Market Watch reported a $450,000 county median sold price. Here is the math at that price, first for a repeat buyer under the default equal split, then for a qualifying first-time buyer under the default seller-pays rule.
Example 1: Repeat buyer, default equal split
Example 2: Qualifying first-time Maryland homebuyer
The state transfer tax drops to 0.25%, and Md. Real Property §14-104(c) assigns the entire recordation tax, county transfer tax, and state transfer tax to the seller, absent an express agreement otherwise.
By default, the first-time buyer saves $5,512.50 at this price, and the seller's share rises from $5,512.50 to $9,900. That shift matters in negotiation. Sellers, and builders in particular, may ask for an express contract term that moves some or all of these taxes back to the buyer, so read that paragraph before signing. Part 3 of this series ("Maryland first time home buyer transfer tax") explains who qualifies and the affidavit the settlement company needs.
Who Pays Transfer and Recordation Tax in Prince George's County?
Maryland law sets a default, and the contract can change it.
- The default equal split. Md. Real Property §14-104(b) presumes that recordation tax and state and local transfer taxes are split equally between buyer and seller unless the contract says otherwise.
- The first-time buyer rule. Under §14-104(c)(1), the seller pays the entire recordation tax and local transfer tax on improved residential property sold to a first-time Maryland homebuyer who will occupy it as a principal residence, unless there is an express agreement otherwise. Under §14-104(c)(2), the seller also pays the entire state transfer tax, which is reduced to 0.25%.
- The contract. An express term can change either default. Builders and some resale sellers write in terms that shift these taxes to the buyer.
Seller credits toward closing costs can also cover the buyer's share, within loan program limits. According to Bright MLS data for Prince George's County for September 2026, 396 of 580 September sales (68%) included seller concessions, with a median concession of $12,511. Part 13 of this series ("Prince George's County transfer tax who pays") covers the seller side in more detail.
What Is the Status of HB 790 and the First-Time Buyer Exemption?
HB 790, titled "State Transfer Tax - Exemption for First-Time Home Buyers - Alterations," was introduced in the 2026 Maryland General Assembly session and referred to the House Ways and Means Committee. According to the DLS fiscal note, it would replace the reduced 0.25% rate with a full exemption from the state transfer tax for first-time buyers of a principal residence. DLS estimated the change would reduce state transfer tax revenue by about $20 million a year starting in FY2027.
The General Assembly bill page, last updated June 30, 2026, lists a February 17, 2026 hearing and no vote or passage. Until that changes, buyers should plan around current law: the 0.25% reduced state rate, paid by the seller under §14-104(c).
Where Do These Taxes Fit in Total Closing Costs?
A buyer's Closing Disclosure will also show items such as:
- Lender charges: origination fees, discount points if any, appraisal, and credit report.
- Title and settlement charges: settlement fee, title search, lender's title insurance, and optional owner's title insurance.
- Government recording fees: the clerk's fee to record the deed and deed of trust, which is separate from recordation tax.
- Prepaid items and escrow: homeowners insurance for the first year, prorated property taxes, and an escrow cushion. Part 6 of this series ("Prince George's County property tax rate") shows how to estimate the tax portion.
Donnell is a PMP, and he treats closing like a project schedule: every cost is listed, assigned, and confirmed with the settlement company before the walkthrough. Buyers using Pathway to Purchase, the county's zero-interest deferred loan of up to $50,000, can apply it toward down payment and closing costs (see Part 1 of this series).
How Can Buyers Lower Transfer and Recordation Tax Costs?
Rates are fixed, but the buyer's share is not.
- Confirm first-time buyer status early. The settlement company confirms eligibility under Md. Tax-Property §13-203 with an affidavit, and the home must be the buyer's principal residence.
- Watch for contract terms that shift the taxes. A first-time buyer pays $0 of these taxes by default, so an express clause moving them to the buyer is a real cost.
- Negotiate the split. In a market with more inventory, such as the 29.6% year-over-year increase in active listings PGCAR reported for April 2026, buyers may have room to ask the seller to cover more.
- Read new construction contracts closely. Builders often write in their own split. Part 9 of this series ("New construction townhomes Prince George's County MD") covers builder contract basics.
Frequently Asked Questions
What is the transfer tax in Prince George's County?
The Prince George's County transfer tax is 1.4% of the price, according to the county's FY2027 budget. The Maryland state transfer tax of 0.5% is charged on top of it. On a $450,000 sale, that is $6,300 for the county and $2,250 for the state.
How much is recordation tax in Prince George's County?
The county recordation tax is $2.75 per $500 of consideration, or $5.50 per $1,000. On a $450,000 purchase, that is $2,475. It is collected when the deed is recorded in the county land records.
Do first-time buyers pay transfer tax in Maryland?
By default, no. Under Md. Real Property §14-104(c), the seller pays the entire recordation tax, county transfer tax, and reduced 0.25% state transfer tax when selling to a qualifying first-time Maryland homebuyer who will live in the home. The contract can shift these costs to the buyer only through an express agreement.
Did Maryland pass HB 790 in 2026?
The General Assembly bill page shows HB 790 received a hearing on February 17, 2026, but lists no vote or passage. Buyers should plan around the current 0.25% reduced state rate and confirm the latest status with their settlement company.
Get Your Closing Cost Numbers Before You Sign
This article is general information, not legal, tax, or lending advice. Your settlement company, attorney, or CPA can confirm the exact taxes and exemptions for your purchase.
Donnell Williams Jr. has worked in Prince George's County real estate since 2000, starting at Asset Realty. He is a Broker-Owner licensed in Maryland, DC, and Virginia, a NACA registered agent, and the author of The Complete Guide to Buying a Home. The DMV Prime Properties philosophy, "Educate to Elevate," means buyers see their closing cost math before they write an offer.
Next Steps
If you are planning a purchase in Prince George's County and want to know exactly what you will owe at settlement, schedule a buyer consult with Donnell. He will walk through your estimated transfer and recordation tax, check first-time buyer eligibility with your settlement company, and help you structure an offer that accounts for seller credits. Visit DMV Prime Properties at 12815 Old Fort Road, Suite 105, Fort Washington, MD 20744, call 301.265.3446, email donnell@dmvprimerealty.com, or go to OWNDMV.COM.
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