# Tax - Property (GTP)

## Title 13. Transfer Taxes

### Subtitle 4. County Transfer Taxes -- in General

#### Section 13-401

In this subtitle, "county transfer tax" means the transfer tax imposed by a county.

#### Section 13-402

(a) This subtitle applies in any county where the county imposes a transfer tax.

(b) The provisions of this subtitle are in addition to the public local laws of a county that relate to transfer taxes.

#### Section 13-402.1

(a) The governing body of a county that has adopted home rule powers under Article XI-F of the Maryland Constitution may impose a transfer tax on an instrument of writing:

  (1) recorded with the clerk of the circuit court for the county; or

  (2) filed with the Department.

(b) A transfer tax imposed under this section:

  (1) may not exceed 0.5%; and

  (2) does not apply to an instrument of writing exempt from the State transfer tax under Sec. 13-207 of this title.

#### Section 13-403

(a) In this section, "domestic partner", "evidence of a domestic partnership", "evidence of dissolution of a domestic partnership", and "former domestic partner" have the meanings stated in Sec. 12-101 of this article.

(b) An instrument of writing that transfers property between spouses or former spouses or between domestic partners or former domestic partners in accordance with a property settlement, divorce decree, or dissolution of a domestic partnership is not subject to a county transfer tax.

(c)

  (1) To qualify as a domestic partner under this section, an individual shall submit evidence of a domestic partnership.

  (2) To qualify as a former domestic partner under this section, an individual shall submit evidence of dissolution of a domestic partnership.

(d) The exemption under subsection (b) of this section for transfers between domestic partners or former domestic partners applies only to an instrument of writing for residential property.

#### Section 13-403.1

An instrument of writing pursuant to which the Maryland Stadium Authority transfers title to, or creates a leasehold interest in, real property if the transferee or lessee is an Authority affiliate as defined in Sec. 10-601 of the Economic Development Article is not subject to a county transfer tax.

#### Section 13-404

(a) The Department shall collect county transfer tax at the rate set by each county for articles of consolidation or articles of merger filed with the Department as required by Sec. 3-107, Sec. 4A-703, Sec. 9A-903, or Sec. 10-208 of the Corporations and Associations Article, or other document filed with the clerk of the circuit court of a county or the Department which evidences a merger or consolidation of foreign corporations, foreign limited liability companies, foreign partnerships, or foreign limited partnerships.

(b)

  (1) Articles of merger or other document which evidences a merger of foreign corporations are not subject to county transfer tax if the articles of merger or other document which evidences a merger of foreign corporations are for a transfer of real property from:

    (i) a parent corporation to its subsidiary corporation;

    (ii) a subsidiary corporation to its parent corporation where the parent corporation:

      (1) previously owned the real property;

      (2) owns the stock of the subsidiary and has owned that stock for a period greater than 18 months; or

      (3) acquires the stock of a subsidiary corporation which has been in existence and has owned the real property for a period of 2 years;

    (iii) a corporation merging out of existence to its successor corporation where recordation tax and, if then required to have been paid, transfer tax were paid when the corporation merging out of existence acquired title to the real property; or

    (iv) a corporation merging out of existence pursuant to reorganizations described in Sec. 368(a) of the Internal Revenue Code.

  (2) Articles of consolidation or other document which evidences a consolidation of foreign corporations are not subject to county transfer tax if the articles of consolidation or other document which evidences a consolidation of foreign corporations are for a transfer of real property from a consolidating corporation to its successor where recordation tax and, if then required to have been paid, transfer tax were paid when the corporation consolidating acquired title to the real property.

(c) A county that imposes a county transfer tax shall certify annually to the Department:

  (1) the rate of the tax;

  (2) the applicability of the county transfer tax; and

  (3) the legal authority for the county transfer tax.

(d) The Department shall:

  (1) collect any county transfer tax imposed under subsection (a) of this section;

  (2) deduct the cost to the Department of collecting county transfer tax under this section; and

  (3) distribute the remainder of the revenue to the county in which the property that is transferred is located.

(e)

  (1) Articles of merger, articles of consolidation, or other document which evidences a merger or consolidation of foreign corporations or foreign limited liability companies or foreign partnerships that are subject to county transfer tax under this section also may be taxable under Sec. 13-202 or Sec. 13-302 of this title or Sec. 12-102 of this article.

  (2) Before a transfer of title may be made under articles of transfer, articles of merger, articles of consolidation, or other document which evidences a merger or consolidation of foreign corporations or foreign limited liability companies or foreign partnerships for any property for which a property certificate is required under Sec. 3-112 or Sec. 4A-708 of the Corporations and Associations Article, all recordation and transfer taxes shall be paid.

#### Section 13-405

(a) Except as provided in subsection (c) of this section, county transfer tax applies to conveyances that transfer the real property of a corporation to its stockholders, a limited liability company to its members, or a partnership to its partners on:

  (1) liquidation;

  (2) dissolution; or

  (3) termination.

(b) For a conveyance that is taxable under this section, county transfer tax applies to the value of the real property determined by the Department at the date of finality immediately before the date of transfer.

(c) A corporate, limited liability company, or partnership transfer as described in Sec. 12-108(p), (q), (v), (w), (y), and (bb) of this article is not subject to the county transfer tax.

#### Section 13-406

In a transfer of property located in 2 or more counties, the county transfer tax of the counties where the property that is transferred is located is apportioned as required under Sec. 12-110(b) of this article.

#### Section 13-407

(a) In this section, "total rate of tax" means the rate of tax imposed for the agricultural land transfer tax under Sec. 13-303(a) of this title plus the rate of tax for a county transfer tax imposed under this section.

(b)

  (1) Unless a greater rate of tax was imposed before July 1, 1979, a county may not impose county transfer tax on a transfer subject to the agricultural land transfer tax under Subtitle 3 of this title at a rate greater than the county rate applicable to the transfer of improved residential property in that county.

  (2) If a county has imposed a county transfer tax at a rate that exceeds the rate applicable to the transfer of improved residential property, the total rate of tax that applies to a transfer subject to the agricultural land transfer tax may not exceed 5% plus the rate that applies to improved residential property under the county transfer tax.

  (3) If the total rate of tax that applies to a transfer subject to the agricultural land transfer tax exceeds the maximum rate allowed under paragraph (2) of this subsection:

    (i) the agricultural land transfer tax is payable at the rate specified in Sec. 13-303(a) of this title; and

    (ii) the rate of the county transfer tax shall be reduced as necessary to comply with the 5% limit.

(c) After July 1, 1979, for the transfer of land subject to the agricultural land transfer tax, a county may not:

  (1) impose a county transfer tax at a rate above the rate that was in effect on July 1, 1979; or

  (2) increase the rate of a county transfer tax above the rate that was in effect on July 1, 1979.

#### Section 13-408

Any county having a county transfer tax may provide for an exemption from the tax of a specified amount of the consideration payable on the conveyance of owner-occupied residential property if the buyer intends to use the property as the buyer's principal residence by actually occupying the residence for at least 7 months of a 12-month period.

#### Section 13-409

(a) Any county having a county transfer tax may provide for an exemption from the tax for an instrument of writing for residentially improved owner-occupied real property if the instrument of writing is accompanied by a statement under oath signed by each grantee or an agent of the grantee that:

  (1)

    (i) the grantee is an individual who has never owned in the State residential real property that has been the individual's principal residence; and

    (ii) the residence will be occupied by the grantee as the grantee's principal residence; or

  (2)

    (i) the grantee is a co-maker or guarantor of a purchase money mortgage or purchase money deed of trust as defined in Sec. 12-108(i) of this article for the property; and

    (ii) the grantee will not occupy the residence as the co-maker's or guarantor's principal residence.

(b) A statement under subsection (a) of this section by an agent of a grantee shall state that the statement:

  (1) is based on a diligent inquiry made by the agent with respect to the facts set forth in the statement; and

  (2) is true to the best of the knowledge, information, and belief of the agent.

#### Section 13-410

An instrument of writing is not subject to the county transfer tax to the same extent that it is not subject to the recordation tax under:

(1) Sec. 12-108(cc) of this article (Certain transfers to land trusts); or

(2) Sec. 12-108(hh) of this article (Transfer of real property within the Pimlico racing facility site, Pimlico site, Bowie Race Course Training Center property, or training facility site).

#### Section 13-411

An instrument of writing that a county or Baltimore City exempts from recordation tax under Sec. 12-118 of this article may be exempted from the county or Baltimore City transfer tax. 

#### Section 13-412

(a)

  (1) Except as provided in subsection (c) of this section and paragraph (2) of this subsection, a county transfer tax shall apply to the consideration payable for an instrument of writing.

  (2) If a county transfer tax applies to mortgages or deeds of trust, the county transfer tax shall apply to the consideration payable or the principal amount of the debt secured for an instrument of writing.

(b) Except as provided in subsection (c) of this section, the consideration:

  (1) includes the amount of any mortgage or deed of trust assumed by the grantee; and

  (2) subject to item (1) of this subsection, includes only the amount paid or delivered in return for the sale of the property and does not include the amount of any debt forgiven or no longer secured by a mortgage or deed of trust on the property.

(c)

  (1) A county transfer tax applies to the consideration paid for the transfer of a controlling interest in a real property entity as defined in Sec. 13-103 of this title that has developed real property under Section 42 of the Internal Revenue Code, the Low Income Housing Tax Credit Program.

  (2) The consideration under this subsection shall be the actual payment made by the purchaser to the seller for the purchase of the interest.

#### Section 13-413

An instrument of writing that is exempt from recordation tax under Sec. 12-108(gg) of this article (Transfer of principal residence surrendered in bankruptcy) is not subject to the county transfer tax.

#### Section 13-414

An instrument of writing that is exempt from recordation tax under Sec. 12-108(ii) of this article (real property transfer-on-death deed) is not subject to county transfer tax.

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Md. Code Ann., Tax-Prop. (as displayed at mgaleg.maryland.gov, October 16, 2026)