Maryland Transfer Tax on an Inherited House Sale in Baltimore County

If you are selling a house in Baltimore County, expect 2.5% of the sale price in combined state and county transfer and recordation tax. That is the highest combined rate in Maryland. How much of that you personally pay as the seller depends on your contract, not a fixed rule; we break that down below, along with what changes if the house came to you through an inheritance.

This page explains how Maryland's transfer tax generally works for an inherited house sale. It is general information, not legal or tax advice, and rules and rates can change. Confirm current figures for your specific sale with Baltimore County, the Maryland Comptroller, or a licensed Maryland attorney or CPA before making a decision.

How Much Is Maryland's Transfer Tax?

Maryland charges a state transfer tax of 0.5% of the sale price on every deed. Baltimore County adds its own local transfer tax of 1.5%, the highest county rate in Maryland, tied with Baltimore City. On top of that, Baltimore County charges a recordation tax of $2.50 per $500 of the sale price, which works out to another 0.5%. Add all three together and a typical sale carries 2.5% of the sale price in transfer and recordation tax combined.

Baltimore County also excludes the first $22,000 of the price from certain owner-occupied residential transactions. This exclusion is tied to the buyer's occupancy, so a sale to an investor or cash buyer, rather than someone who will live in the house, typically will not qualify. Confirm with your title company whether it applies to your specific sale.

Figures verified September 2026 against Baltimore County Government and the Maryland Code, Tax-Property Article. See sources below.

Who Actually Pays It?

Maryland law does not fix who pays. By long-standing custom in the region, the state's 0.5% is typically split evenly between buyer and seller, 0.25% each. Baltimore County's 1.5% local transfer tax is customarily paid by the buyer, though this is negotiable and set out in the contract of sale, not by statute. The split on the recordation tax varies by contract. Do not assume a fixed rule applies to your sale; ask your title company or attorney what your specific contract sets out.

Is There an Exemption for Inherited Property?

Yes, but it applies to a different step than most people expect. When a personal representative transfers a house out of an estate to an heir, that deed is exempt from both recordation and transfer tax under Maryland law. That exemption covers the estate-to-heir transfer only. When you, as the heir, later sell that same house to a buyer, the sale is a new, separate transaction, and the normal 2.5% applies in full. Inheriting the house does not reduce or exempt you from transfer tax when you go to sell it.

Transfer Tax vs. Maryland Inheritance Tax

These are two different taxes people often confuse. Transfer tax is charged on the sale of the property and is calculated on the sale price. Inheritance tax is charged on the act of inheriting and is calculated on the value of what you received, and who you are to the person who died. In Maryland, a spouse, child, grandchild, parent, or sibling owes no inheritance tax at all. More distant relatives, like a niece, nephew, or cousin, owe 10%. If you are a lineal heir selling an inherited Baltimore County house, you likely owe no inheritance tax on the inheritance itself, but you will owe transfer tax on the sale.

Worked Example: Selling a $300,000 Inherited House in Baltimore County

Tax	Rate	Amount
State transfer tax	0.5%	$1,500
Baltimore County transfer tax	1.5%	$4,500
Baltimore County recordation tax	0.5%	$1,500
Total	2.5%	$7,500

How that splits between buyer and seller depends on your contract. By regional custom, the $1,500 state transfer tax is typically split evenly, $750 each, and Baltimore County's $4,500 local transfer tax is customarily paid by the buyer. The $1,500 recordation tax is often split as well, but this varies. Ask your title company or attorney for the exact split on your transaction.

Frequently Asked Questions

Do I owe transfer tax just for inheriting the house?

No. The deed moving the house from the estate to you is exempt from transfer and recordation tax. The tax applies when you later sell it.

Does selling to a cash buyer or investor change the transfer tax?

No, the rate is the same regardless of who buys it. What can change is the $22,000 residential exclusion, which generally requires an owner-occupant buyer, something a cash-buyer or investor sale often will not qualify for.

Can multiple heirs split the transfer tax?

The tax is on the transaction, not divided per heir. How the net proceeds, taxes included, get split among heirs is a separate agreement between them.

Is this different from Maryland's inheritance tax?

Yes. Transfer tax applies to the sale and is based on the sale price. Inheritance tax applies to the inheritance itself and depends on your relationship to the person who died. Most heirs selling an inherited Baltimore County house owe transfer tax but no inheritance tax.

Questions about how this applies to your specific property or estate? See our full Disclaimer, or call 410-862-4130 to talk through the property side of an inherited house sale in Baltimore County.

Sources

Figures verified September 2026.