Prince George's County Transfer Tax: Who Pays? (Part 13 of 30: The Prince George's County Answer Guide)

This is Part 13 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.

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Prince George's County transfer tax: who pays? Maryland law presumes the buyer and seller split transfer and recordation taxes equally unless the contract says otherwise. When the buyer is a qualifying first-time Maryland home buyer, the seller pays all of the county transfer tax, the recordation tax, and a reduced state transfer tax, unless the contract expressly provides otherwise.

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This question usually comes up when a buyer sees the Loan Estimate or a seller sees a net sheet for the first time. Below is how each tax works and who pays by default.

Key Takeaways

• The Prince George's County Office of Finance lists the county transfer tax at 1.4% and the recordation tax at $5.50 per $1,000.
• Maryland's state transfer tax is 0.5%, under Md. Code, Tax-Property §13-203.
• Under Md. Code, Real Property §14-104(b), an equal split is presumed unless the contract says otherwise.
• For a qualifying first-time Maryland home buyer, §14-104(c) places all three taxes on the seller, with the state tax reduced to 0.25%.
• On a $450,000 sale, the three taxes total $11,025 before any exemption.

What Taxes Are Due When a Home Sells in Prince George's County?

Three separate taxes are collected when a deed is recorded in Prince George's County:

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1. County transfer tax. A tax on the transfer of real property, set by the county. The Prince George's County Office of Finance lists it at 1.4% of the consideration.
2. State transfer tax. A tax set by the State of Maryland. Md. Code, Tax-Property §13-203 sets the standard rate at 0.5% of the consideration.
3. Recordation tax. A tax on recording the deed (and, in some cases, a deed of trust). The county Office of Finance lists it at $5.50 per $1,000 of consideration.

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"Consideration" means the price paid for the property. In a standard sale, it is the contract sales price.

Prince George's County Transfer Tax: Who Pays Under the Contract?

Md. Code, Real Property §14-104(b) sets the default. In a standard sale, the law presumes the parties intended to share "any recordation tax or any State or local transfer tax" equally, unless the agreement says otherwise. A Smart Settlements guide to Maryland transfer and recordation taxes describes the same equal split as customary. The first-time buyer rule below is the main exception.

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[Donnell to confirm the exact tax paragraph in the current Maryland REALTORS residential contract.] Whatever the form says, the parties can change the split with an addendum or a counteroffer.

Common ways the split is negotiated

• Standard split. Each side pays half of all three taxes.
• Seller pays all. A seller may agree to pay the full amount to attract offers, often as part of a price discussion.
• Buyer pays all. Less common in resale, but possible in a competitive situation.
• Builder contracts. New construction contracts are written by the builder and may allocate taxes differently. Read that section before signing (see Part 9 of this series on new construction townhomes in Prince George's County).

How Much Is the Transfer Tax on a $450,000 Home?

The PGCAR April 2026 Market Watch reported a $450,000 median sold price in Prince George's County. Here is the math at that price.

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Each side pays about 1.2% of the price under a standard split when the buyer is not a first-time Maryland home buyer. For a buyer, that amount is part of closing costs (see Part 7 of this series on Prince George's County transfer and recordation tax). For a seller, it is a deduction on the net sheet (see Part 12 of this series on how much it costs to sell a house in Maryland).

What Happens When the Buyer Is a First-Time Home Buyer?

Two statutes work together. Md. Code, Tax-Property §13-203 reduces the state transfer tax to 0.25% when improved residential property is sold to a first-time Maryland home buyer who will occupy it as a principal residence. Md. Code, Real Property §14-104(c)(2) requires the seller to pay that entire state tax. Section 14-104(c)(1) adds that "the entire amount of recordation tax and local transfer tax shall be paid by the seller" in the same sale, unless the parties have an express agreement that the seller will not pay them entirely.

Who counts as a first-time Maryland home buyer?

Under §13-203, a first-time Maryland home buyer is an individual who has never owned residential real property in Maryland that was his or her principal residence. The buyer must also occupy the property as a principal residence. Under §14-104(c)(5), each buyer must provide a statement signed under oath. If there are two or more buyers, §14-104(c)(4) generally requires each one to qualify.

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This definition is different from the one used by Pathway to Purchase. That county program treats a buyer as first-time if they have not owned a home in the past three years. A buyer can qualify for Pathway to Purchase and still not meet the state transfer tax definition, or the reverse. Your settlement company will confirm eligibility.

What the first-time buyer rule means in dollars

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Under the default rule, a qualifying first-time buyer pays none of these taxes. The total tax bill drops from $11,025 to $9,900 because of the reduced state rate, but all of it shifts to the seller.

Does a first-time buyer cost the seller more?

Yes, under the default rule. In the $450,000 example, the seller's tax cost rises from $5,512.50 to $9,900, an increase of $4,387.50. Sellers can negotiate. Section 14-104(c)(1) allows an express agreement that the county transfer tax and recordation tax will not be paid entirely by the seller. The reduced state transfer tax stays with the seller under §14-104(c)(2). Sellers reviewing a first-time buyer's offer should ask their agent to run the net sheet both ways.

Did Maryland Pass a Full Transfer Tax Exemption for First-Time Buyers in 2026?

House Bill 790 in the 2026 session proposed changes to the first-time buyer exemption in §§13-203 and 13-207. According to the Maryland General Assembly bill page, the bill had a hearing in the House Ways and Means Committee on February 17, 2026, and the page shows no further action. Based on that record, the current 0.25% rule paid by the seller remains the rule. [Donnell to confirm with a settlement company that no other 2026 legislation changed the first-time buyer transfer tax rule.] Part 3 of this series covers the buyer side of this topic.

Are There Other Transfer Tax Exemptions in Prince George's County?

Yes, in specific situations. The county Office of Finance refinance affidavit describes county transfer tax exemptions for certain principal residence refinances by the same borrower. Other Maryland exemptions can apply to certain transfers, each with conditions. A settlement company or real estate attorney should confirm one applies before you rely on it.

Why the Split Matters in Fall 2026

With more inventory, buyers have more room to ask sellers to cover costs. According to the PGCAR April 2026 Market Watch, active listings reached 1,872, up 29.6% year over year. The PGCAR June 2026 Market Insight report showed sellers received an average of 98.4% of original list price, down from 99.3% a year earlier.

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Many buyers also ask for a seller credit toward closing costs, within the limits the lender sets for the loan type. According to Bright MLS data for Prince George's County for September 2026, 396 of the 580 homes sold that month (68%) included seller concessions, with a median of $12,511 when paid. Both requests change the seller's net, so judge the full offer, not one line.

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Donnell has worked in Prince George's County real estate since 2000, beginning as a high school intern at Asset Realty, and is a Broker-Owner licensed in Maryland, DC, and Virginia. Transfer tax custom differs across those jurisdictions, so DMV Prime Properties reviews the tax section of every contract instead of assuming the default. Donnell is also a NACA registered agent and author of The Complete Guide to Buying a Home.

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This article is general information, not legal, tax, or lending advice.

Frequently Asked Questions

Does the buyer or seller pay transfer tax in Prince George's County?

Maryland law presumes an equal split of transfer and recordation taxes unless the contract says otherwise. When the buyer is a qualifying first-time Maryland home buyer, Real Property §14-104(c) places the county transfer tax, recordation tax, and reduced state transfer tax on the seller, unless the contract expressly provides otherwise for the county and recordation taxes.

What is the transfer tax rate in Prince George's County, Maryland?

The Prince George's County Office of Finance lists the county transfer tax at 1.4%. The Maryland state transfer tax is an additional 0.5%. Recordation tax is $5.50 per $1,000 of the price.

How much is the transfer tax on a $400,000 house in Prince George's County?

At $400,000, the county transfer tax is $5,600, the state transfer tax is $2,000, and the recordation tax is $2,200, for a total of $9,800. Under a standard split, each side pays $4,900. If the buyer is a qualifying first-time Maryland home buyer, the state tax drops to $1,000 and, by default, the seller pays all $8,800.

Do first-time buyers pay county transfer tax in Prince George's County?

Usually not. The 1.4% county transfer tax is still due, but Real Property §14-104(c)(1) requires the seller to pay it, along with the recordation tax, unless the contract expressly says otherwise. The buyer must sign a statement under oath to qualify.

Can I negotiate who pays transfer tax?

Yes. The split is a contract term that can be changed in the offer, a counteroffer, or an addendum. With a first-time buyer, the county and recordation taxes shift only by an express agreement, and the reduced state transfer tax stays with the seller.

Next Steps

Sellers: request a free home valuation and a seller net sheet from Donnell Williams Jr. and DMV Prime Properties to see your transfer and recordation tax share before you list. Buyers: book a first-time buyer strategy call to see whether you qualify for the state first-time buyer rule and how it affects your cash to close. The brokerage philosophy is "Educate to Elevate," so every tax line is explained before you sign. DMV Prime Properties is at 12815 Old Fort Road, Suite 105, Fort Washington, MD 20744. Call 301.265.3446, email donnell@dmvprimerealty.com, or visit OWNDMV.COM.

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