Quick answer
A median-value Maryland home ($436,300) costs about $3,396 a month with 10% down at the 7.24% national average rate, including property tax at the state’s effective rate of 0.95%. What sets Maryland apart is the stack of taxes on the deed: a 0.5% state transfer tax plus county recordation and transfer taxes. First-time Maryland buyers get the state rate cut to 0.25%, paid entirely by the seller, and the Maryland Mortgage Program lends up to 5% of the first mortgage for the down payment at 0%.
Key facts
$436,300
Median home value in Maryland
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
$102,905/yr
Median household income
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
0.95%
Effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
0.25%
State transfer tax, first-time Maryland buyers
Maryland Code, Tax-Property § 13-203 · Oct 29, 2026
5%
MMP down payment loan, up to (share of first mortgage)
Maryland Mortgage Program: MMP 1st Time Advantage · Sep 4, 2026
10%
Homestead Tax Credit cap on yearly assessment growth
Maryland SDAT: Homestead Tax Credit · Oct 29, 2026
Maryland’s closing-day tax stack
Maryland can tax the same deed three times: once for the state and up to twice more locally. Its state transfer tax ranks 11th of 51 among the states and DC, and the local layers are set county by county.
| Tax | Set by | Rate | On the median home |
|---|---|---|---|
| State transfer tax | State law (Tax-Property § 13-203) | 0.5% of the price | $2,182 |
| State transfer tax, first-time Maryland buyer | State law | 0.25%, paid entirely by the seller | $1,091 |
| Recordation tax | Each county and Baltimore City | A local rate charged on each $500 of the price | Varies by county |
| Local transfer tax | Counties and Baltimore City that levy one | A local percentage | Varies by county |
Because each county and Baltimore City sets its own recordation rate, ask your title company for the exact local figures early. Your purchase loan generally isn’t taxed a second time: Maryland exempts a purchase-money mortgage recorded as part of the same transaction from recordation tax, so the tax falls on the deed. Outside the first-time buyer rule, the state statute doesn’t say who pays, so your sales contract decides. The closing cost calculator splits the state tax evenly by default.
What the first-time buyer rule is worth
To qualify, every buyer must sign a sworn statement that they have never owned a home in Maryland that they lived in as a principal residence, and that they will live in this one. Buying your first Maryland home after owning in another state still counts.
State transfer tax on the median Maryland home ($436,300)
| Regular sale, split evenly | First-time Maryland buyer | |
|---|---|---|
| State transfer tax | $2,182 at 0.5% | $1,091 at 0.25% |
| Buyer pays | $1,091 | $0 |
| Seller pays | $1,091 | $1,091 |
Under an even split, the first-time rule removes the buyer’s share entirely, while the seller’s cost stays the same. The county recordation and transfer taxes are separate: state law lets a county exempt first-time buyers from part or all of its recordation tax, but not every county does, so check your county’s rules.
A Maryland Mortgage Program purchase, step by step
The Maryland Mortgage Program (MMP), run by the state’s Department of Housing and Community Development, works through approved lenders. Its 1st Time Advantage loans are for first-time buyers, with exceptions for buyers who haven’t owned a principal residence recently, buyers in targeted areas and eligible veterans. Every option requires an approved homebuyer education class.
| MMP option | Down payment help | How it works |
|---|---|---|
| 1st Time Advantage 6000 | $6,000 | 0% second lien, no payments while the first mortgage is in place |
| 1st Time Advantage percentage loans | A set share of the first mortgage, up to 5% | 0% deferred second lien |
| HomeStart | 6% of the first mortgage | 0%, 30-year deferred; for the lowest-income tier of buyers |
| Partner Match | Up to $2,500 more | Matches help from an approved employer or partner on the 6000 loans |
First-time buyer, median home, 3% down with the 5% MMP loan
| Amount | |
|---|---|
| Price | $436,300 |
| Down payment at 3% | $13,089 |
| First mortgage | $423,211 |
| MMP loan at 5% of the first mortgage | $21,161 |
| Monthly payment (principal, interest, tax, insurance, PMI) | $3,619 |
The MMP loan covers the down payment and leaves $8,072 toward closing costs. Because it is deferred at 0%, it adds nothing to the monthly payment; it comes due when the first mortgage is paid off, including through a sale or refinance. Closing costs at the CFPB’s typical range would run $8,726–$21,815.
The median home with 10% down, and the income check
Maryland’s median household income of $102,905 ranks 4th of 51, above the US median, while the median home value ranks 15th. Homes cost 4.2 times income here, less than the US ratio of 4.4.
$436,300 home, 10% down, 30-year fixed at 7.24%
| Part of the payment | Monthly |
|---|---|
| Principal and interest on $392,670 | $2,676 |
| Property tax at 0.95% | $345 |
| Homeowners insurance at the national $4.90 per $1,000 | $178 |
| PMI (midpoint of Freddie Mac’s range) | $196 |
| Total | $3,396 |
Keeping housing under Freddie Mac’s 30% guideline, the median income supports a budget of $2,573 a month — enough for about $331,000 with 10% down, $105,300 less than the median home value. The affordability calculator runs the same test on your own income, and the payment calculator opens with these Maryland inputs.
Property tax and the Homestead Tax Credit
At 0.95% of value, Maryland’s effective property tax rate is above the national 0.89% and ranks 21st of 51. Bills combine the state rate with county and, in some places, municipal rates on the value set by the State Department of Assessments and Taxation (SDAT).
The Homestead Tax Credit limits how fast the taxable assessment on your principal residence can rise: no more than 10% a year for the state tax, and every county and municipality must use a cap at that level or lower. You file once, through SDAT, and the credit stays as long as you own and live in the home. New owners are mailed an application after the deed is recorded. Because the credit depends on the home not having changed hands in the prior tax year, its protection usually begins after your first full year of ownership.
Frequently asked questions
How much is the transfer tax in Maryland?
The state transfer tax is 0.5% of the price — $2,182 on the median $436,300 home. Counties and Baltimore City add a recordation tax charged on each $500 of the price, and some add their own transfer tax, so the total depends on where you buy.
Do first-time home buyers pay transfer tax in Maryland?
A first-time Maryland home buyer who will live in the home pays no state transfer tax: the rate drops to 0.25% and state law puts the whole amount on the seller. County taxes may still apply, although counties can exempt first-time buyers from part or all of the recordation tax.
What down payment help does the Maryland Mortgage Program offer?
MMP 1st Time Advantage loans come with a $6,000 0% second loan or a deferred 0% loan worth a set share of the first mortgage, up to 5%. HomeStart offers 6% for lower-income buyers, and Partner Match adds up to $2,500.
What is the property tax rate in Maryland?
Census figures put the median Maryland homeowner’s tax bill at $4,144 a year, an effective rate of about 0.95% of home value. Your county’s rate and any municipal rate decide the actual bill.
How does the Maryland Homestead Tax Credit work?
It caps yearly increases in the taxable assessment of your principal residence at 10% for the state tax, with local caps at that level or lower. You apply once with SDAT and the credit continues while you own and occupy the home.
How much income do you need to buy a house in Maryland?
To keep housing under 30% of gross income on the median $436,300 home with 10% down at today’s average rate, you would need about $135,837 a year, before other debts. The median Maryland household earns $102,905.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median household income (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- Freddie Mac My Home — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- CFPB — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price); Minimum down payment on some conventional loans (Oct 28, 2026)
- Maryland Tax-Property Article §13-203 — State real estate transfer tax; Maryland state transfer tax for a first-time Maryland home buyer (paid entirely by the seller) (Jan 21, 2026)
- Maryland Mortgage Program: MMP 1st Time Advantage — MMP 1st Time Advantage down payment loan, up to (share of the first mortgage); MMP 1st Time Advantage 6000 down payment loan; MMP HomeStart down payment loan for households at or below 50% of area median income (share of the first mortgage) (Sep 4, 2026)
- Maryland Mortgage Program: Down Payment Assistance — MMP Partner Match: partner assistance matched, up to (Mar 17, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- Maryland SDAT: Homestead Tax Credit — Maryland Homestead Tax Credit: yearly cap on taxable assessment increases (state tax, local caps can be lower) (Oct 29, 2026)
- Maryland Code, Tax-Property § 12-103 (recordation tax)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.