Title 13. Transfer Taxes — Subtitle 3. Agricultural Land Transfer Tax
Statutes in effect as of October 1, 2026.
Md. Code Ann., Tax-Prop. § 13-301 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–301LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Agricultural land” means real property that is or was assessed on the basis of farm or agricultural use under § 8–209 of this article.
(c)
(1)
“Agricultural land transfer tax” means the tax imposed under § 13–302 of this subtitle.
(2)
“Agricultural land transfer tax” does not include the surcharge imposed under § 13–303(d) of this subtitle.
(d)
(1)
“Total value” means the value of the property as stated in the most recent assessment roll.
(2)
“Total value” includes any adjustment in the value of improvements that result from an increase in construction costs as determined by the Department as of the most recent date of finality.
Md. Code Ann., Tax-Prop. § 13-302 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–302LinkCopy Citation
(a)
Except as otherwise provided in § 13-305 of this subtitle, agricultural land transfer tax is imposed on an instrument of writing that transfers title to agricultural land.
(b)
Agricultural land transfer tax is payable in addition to any other transfer tax imposed under this title.
(c)
An instrument of writing subject to agricultural land transfer tax may not be recorded in any county until the agricultural land transfer tax is paid to the collector for the county or paid to the Department.
(d)
An instrument of writing subject to agricultural land transfer tax may not be filed with the Department until the agricultural land transfer tax is paid to the Department or the collector for the county.
Md. Code Ann., Tax-Prop. § 13-303 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–303LinkCopy Citation
(a)
The agricultural land transfer tax applies at the following rates:
(1)
for a transfer of 20 acres or more of agricultural land, 5%;
(2)
except as provided in item (3) of this subsection, for a transfer of less than 20 acres of agricultural land assessed for agricultural use or as unimproved agricultural land, 4%; or
(3)
for a transfer of less than 20 acres of agricultural land assessed as improved agricultural land or agricultural land with site improvements, 3%.
(b)
If an instrument of writing is subject to different rates of agricultural land transfer tax under subsection (a) of this section, the total agricultural land transfer tax due is computed separately for each portion of agricultural land to which a different rate applies.
(c)
Except as provided by § 13–305(b)(2) or (c)(4) of this subtitle, the agricultural land transfer tax determined under subsection (a) or subsection (b) of this section is reduced by:
(1)
25% if property tax on the agricultural land was paid on the basis of any assessment other than the farm or agricultural use assessment under § 8–209 of this article for 1 full taxable year before a transfer;
(2)
50% if property tax on the agricultural land was paid on the basis of any assessment other than the farm or agricultural use assessment under § 8–209 of this article for 2 full consecutive taxable years before a transfer; and
(3)
65% if property tax on the agricultural land was paid on the basis of any assessment other than the farm or agricultural use assessment under § 8–209 of this article for 3 or more full consecutive taxable years before a transfer.
(d)
(1)
Except as provided in paragraph (2) of this subsection, in addition to the agricultural land transfer tax, a surcharge in an amount equal to 25% of the tax determined under subsections (a) through (c) of this section is imposed on an instrument of writing that transfers title to agricultural land.
(2)
The surcharge imposed under paragraph (1) of this subsection does not apply to an instrument of writing that transfers property of 2 acres or less to be improved to a child or grandchild of the owner.
(e)
When determining the rate of the agricultural land transfer tax to be imposed under subsection (a) or (b) of this section, the amount of agricultural land transferred that is exempt from the tax in accordance with § 13–305 of this subtitle may not be included in the amount of agricultural land that is transferred.
Md. Code Ann., Tax-Prop. § 13-304 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–304LinkCopy Citation
(a)
The agricultural land transfer tax is imposed on the consideration payable for the instrument of writing less:
(1)
the total value of any improvements on the property; and
(2)
the total value of any land not subject to the agricultural land transfer tax.
(b)
(1)
If an instrument of writing transfers agricultural land with an improvement that has not been assessed by the supervisor, the grantor shall notify the supervisor at least 7 days before the date of transfer.
(2)
For the purposes of paragraph (1) of this subsection, the supervisor shall:
(i)
determine the estimated total value of the improvements on the most recent date of finality; and
(ii)
give the grantor at the time of the transfer a notice of the estimated value of the improvements.
(3)
The grantor may appeal the estimated total value stated in the notice as provided by § 8-407 of this article.
Md. Code Ann., Tax-Prop. § 13-305 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–305LinkCopy Citation
(a)
If the amount of agricultural land transferred is not greater than the applicable residential minimum zoning size in effect at the time of transfer, an instrument of writing for the residential use of the owner of the agricultural land or the owner’s immediate family is not subject to the agricultural land transfer tax.
(b)
(1)
Except as provided in paragraph (2) of this subsection, an instrument of writing that transfers title to agricultural land that is eligible for farm or agricultural use assessment under § 8–209 of this article is not subject to the agricultural land transfer tax if the transferee:
(i)
files with the supervisor before the transfer a declaration of intent to farm the agricultural land that specifies that all of the transferred agricultural land will remain in farm or agricultural use for at least 5 full consecutive taxable years; and
(ii)
applies for farm or agricultural use assessment under § 8–209 of this article for the land that is transferred.
(2)
(i)
If there is a failure to comply with a declaration of intent filed under paragraph (1) of this subsection including the building of nonagricultural improvements or nonagricultural site improvements or there is a failure to qualify for the farm or agricultural use assessment under § 8–209 of this article during the time that a declaration of intent is in effect, the agricultural land transfer tax, plus penalty, is due on that portion of the land that fails to comply with the declaration of intent or to qualify for farm or agricultural use.
(ii)
The tax and penalty due under this subsection are a lien on the agricultural land that was transferred. The tax and penalty are due on the earlier of:
(1)
the next date on which property tax on the agricultural land is due under § 10–102 of this article; or
(2)
the date of the next transfer of any part of the agricultural land.
(3)
For the purpose of paragraph (2) of this subsection, the supervisor shall calculate the amount of the agricultural land transfer tax due by:
(i)
determining the fair market value of the land subject to the tax as of the most recent July 1 and providing the property owner with a notice of that value, which the property owner may appeal as provided by § 8–404 of this article;
(ii)
multiplying the fair market value of the land subject to the tax by the rate of tax provided under § 13–303 of this subtitle; and
(iii)
adding to the tax calculated under subparagraph (ii) of this paragraph a penalty in the amount of 10% of the tax due.
(c)
(1)
An instrument of writing that transfers title to agricultural land that is eligible for farm or agricultural use assessment or that received the agricultural use assessment as of the most recent July 1 under § 8–209 of this article is subject to the agricultural land transfer tax as provided in paragraph (2) of this subsection, if the transferee:
(i)
files with the supervisor before the transfer a declaration of intent to farm the land that specifies that part of the agricultural land will remain in farm or agricultural use for at least 5 full consecutive taxable years;
(ii)
for a parcel that can be further subdivided into 2 or more parcels, provides the supervisor with a survey that accurately identifies the location of the land and the amount of acreage that is subject to the declaration of intent; and
(iii)
applies for farm or agricultural use assessment for part of the agricultural land that is transferred.
(2)
The agricultural land transfer tax applies to the value of the land not subject to the declaration of intent, exclusive of the items stated in § 13–304 of this subtitle.
(3)
For the purpose of paragraph (2) of this subsection, the supervisor:
(i)
shall determine the fair market value of the land not subject to the declaration of intent as of the most recent July 1 and provide the transferee with a notice of that value, which the transferee may appeal as provided by § 8–404 of this article; and
(ii)
calculate the amount of the tax due by multiplying the fair market value of the land subject to the tax by the rate of the tax provided under § 13–303 of this subtitle.
(4)
If there is a failure to comply with a declaration of intent filed under paragraph (1) of this subsection or a failure to qualify for the farm or agricultural use assessment under § 8–209 of this article during the time that a declaration of intent is in effect, the agricultural land transfer tax, plus penalty, is due on the land subject to the declaration of intent.
(5)
The tax and penalty due under this subsection are a lien on the agricultural land that was transferred. The tax and penalty are due on the earlier date of:
(i)
the date on which property tax on the agricultural land is due under § 10–102 of this article; or
(ii)
the date of the next transfer of any part of the agricultural land.
(6)
For the purpose of paragraph (4) of this subsection, the supervisor shall calculate the amount of the agricultural land transfer tax due by:
(i)
determining the fair market value of the land subject to the tax as of the most recent July 1 and providing the property owner with a notice of that value, which the property owner may appeal as provided by § 8–404 of this article;
(ii)
multiplying the fair market value of the land subject to the tax by the rate of the tax under § 13–303 of this subtitle; and
(iii)
adding to the tax calculated under subparagraph (ii) of this paragraph a penalty in the amount of 10% of the tax due.
(d)
The owner of real property which is subject to the agricultural use assessment must notify the Department when there is:
(1)
a failure to comply with a declaration of intent; or
(2)
failure to continue the property in agricultural use.
(e)
If there is a failure to comply with a declaration of intent filed under subsection (b) or subsection (c) of this section, the supervisor in determining the fair market value of the land subject to the violation shall:
(1)
identify the size and location of the land by:
(i)
making a physical inspection of the property;
(ii)
considering pertinent governmental records such as building permits, zoning maps, and regulations;
(iii)
considering information provided by the property owner; and
(iv)
determining that in the case of the building of a dwelling for the residential use of the owner, the size of the building site is 1 acre unless more land is actually used; and
(2)
appraise the land utilizing generally accepted appraisal approaches including consideration of the sales of comparable land.
(f)
For the purposes of subsections (c) and (e) of this section, if under current governmental land use regulations the parcel cannot be further subdivided into 2 or more parcels, the supervisor shall:
(1)
appraise the entire parcel; and
(2)
apportion the amount of the total market value of the parcel to that part of the parcel subject to the tax in accordance with generally accepted appraisal approaches including consideration of prevailing homesite land values in that area.
(g)
In addition to the exemptions otherwise provided by this section, the agricultural land transfer tax does not apply to an instrument of writing described in § 13–207(a) of this title.
(h)
The agricultural land transfer tax does not apply to an instrument of writing that transfers title to agricultural land that was previously transferred by an instrument of writing that was subject to the agricultural land transfer tax.
Md. Code Ann., Tax-Prop. § 13-306 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–306LinkCopy Citation
(a)
(1)
Except in Montgomery County and except as provided in subsection (b)(1) of this section for a certified county, each county collector shall remit from a special account to the Comptroller, as the Comptroller specifies:
(i)
the revenue from:
(1)
the agricultural transfer tax that is attributable to the taxation of instruments of writing that transfer title to parcels of land that are entirely woodland; and
(2)
the surcharge imposed under § 13–303(d) of this subtitle; and
(ii)
two–thirds of the balance of revenue from the agricultural land transfer tax that remains after the remittance under item (i) of this paragraph.
(2)
In Montgomery County, if § 52–21(d) (1979) of the Montgomery County Code is in effect or a transfer tax substantially similar to that provision is in effect, the collector for Montgomery County shall remit to the Comptroller:
(i)
the revenue from:
(1)
the agricultural transfer tax that is attributable to the taxation of instruments of writing that transfer title to parcels of land that are entirely woodland; and
(2)
the surcharge imposed under § 13–303(d) of this subtitle; and
(ii)
one–third of the balance of revenue from the agricultural transfer tax that remains after the remittance under item (i) of this paragraph.
(3)
The Comptroller shall deposit:
(i)
up to $200,000 annually of the revenue remitted under paragraphs (1)(i) and (2)(i) of this subsection or subsection (b) of this section into the Mel Noland Woodland Incentives Fund established in § 5–307 of the Natural Resources Article; and
(ii)
of the revenue in excess of $200,000 annually remitted under paragraphs (1)(i) and (2)(i) of this subsection or subsection (b)(1) of this section and the revenue remitted under paragraphs (1)(ii) and (2)(ii) of this subsection or subsection (b)(2) of this section:
(1)
subject to paragraph (4) of this subsection, for fiscal year 2011 and each fiscal year thereafter, $2,756,250 into the Maryland Agricultural Land Preservation Fund to be used for the purposes stated in § 2–505 of the Agriculture Article;
(2)
after the distribution made under item 1 of this item, 37.5% of the agricultural land transfer tax revenue remitted to the Comptroller, up to a maximum of $4,000,000 annually, into a special fund to be used by the Maryland Agricultural and Resource–Based Industry Development Corporation for the Next Generation Farmland Acquisition Program; and
(3)
after the distributions made under items 1 and 2 of this item, the remainder into the Maryland Agricultural Land Preservation Fund to be used for the purposes stated in § 2–505 of the Agriculture Article.
(4)
For each fiscal year after 2011, the amount distributed into the Maryland Agricultural Land Preservation Fund under paragraph (3)(ii)1 of this subsection shall be increased by 5% over the amount distributed for the preceding fiscal year.
(5)
The revenues required to be distributed to the Maryland Agricultural and Resource–Based Industry Development Corporation under paragraph (3) of this subsection shall be distributed on a quarterly basis on or about the first day of the month in July, October, January, and April.
(b)
If a county is certified by the Department of Planning and the Maryland Agricultural Land Preservation Foundation under § 5–408 of the State Finance and Procurement Article as having established an effective county agricultural land preservation program, the collector for the county shall remit to the Comptroller:
(1)
the revenue from:
(i)
the agricultural land transfer tax that is attributable to the taxation of instruments of writing that transfer title to parcels of land that are entirely woodland; and
(ii)
the surcharge imposed under § 13–303(d) of this subtitle; and
(2)
25% of the balance of revenue from the agricultural land transfer tax that remains after the remittance under item (1) of this subsection.
(c)
(1)
In this subsection, “development rights” means the potential for improvement of a parcel of real property that is measured in dwelling units or units of commercial or industrial space and that exist because of the zoning classification of the parcel.
(2)
Each county collector shall hold the remainder of the revenue in a special county account for 6 years to be used for an approved agricultural land preservation program that meets the requirements of this subsection, including use for bond annuity funds or matching funds.
(3)
For purposes of this subsection, an approved agricultural land preservation program is a program to purchase development rights, guarantee loans that are collateralized by development rights or provide financial enhancements related to purchase of development rights, for agricultural land that, except as provided in paragraph (4) of this subsection, meets the minimum standards set by the Maryland Agricultural Land Preservation Foundation under § 2–509(d) of the Agriculture Article.
(4)
In lieu of any acreage requirement set by the Foundation under § 2–509(d) of the Agriculture Article, development rights purchased by or collateralizing loans guaranteed by a county or financial enhancements related to purchase of development rights under this subsection shall be for agricultural land of significant size to promote an agricultural operation.
(5)
(i)
Subject to the limitation under subparagraph (ii) of this paragraph, the funds described in paragraph (2) of this subsection may be used to pay administrative expenses.
(ii)
The costs of the administrative expenses may not exceed 10% of the funds or $30,000, whichever is the greater.
(6)
This subsection does not prohibit any county from accepting funds from private sources and using those private funds to purchase development rights, guarantee loans that are collateralized by development rights, or provide financial enhancements related to purchase of development rights.
(d)
If any revenue in the special county account has not been expended or committed on or before 6 years from the date of deposit into the county account, the county collector shall remit that revenue to the Comptroller for deposit in the Maryland Agricultural Land Preservation Fund.
(e)
From the agricultural land transfer tax collected by it, the Department shall remit the county part of the revenue to the collector for the county in which the land is located for distribution under this section.
Md. Code Ann., Tax-Prop. § 13-307 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–307LinkCopy Citation
The Department shall adopt regulations to implement this subtitle.
Md. Code Ann., Tax-Prop. § 13-308 (2026)
Title 13. Transfer Taxes
Subtitle 3. Agricultural Land Transfer Tax
§ 13–308LinkCopy Citation
(a)
When a contract is executed for the transfer of any interest in agricultural land, the seller shall notify the buyer, in writing, that the transfer may be subject to the agricultural land transfer tax.
(b)
If a seller fails to notify a buyer as required by subsection (a) of this section, the seller is liable to the buyer for the agricultural land transfer tax paid by the buyer.