In an effort to raise funds for Capital Projects and Housing Initiatives, council members in Anne Arundel and Montgomery counties each passed budgets for the upcoming year that includes increases in Transfer and Recordation Taxes.
This may start affecting your closings as early and July 1 in Anne Arundel County. Upon the transfer or sale of properties valued at $1 million or more, the previous 1% transfer tax will become 1.5%.
Council members passed this budget change last week. Specific details as to the logistics within the recorder’s office have not been released. If you are currently under contract in Anne Arundel County for $1 million or more, please contact your Settlement Agent for updated transfer costs.
Montgomery County will also increase recordation tax effective October 1. This change will apply to transfers, sales and refinance transactions valued over $600,000.
For recordation value between $600,001 and $750,000, the rate will be $5.75/$500 (a 150% increase).
For recordation value between $750,001 and $1 million, the rate will be $6.33/$500 (a 175% increase).
For recordation value over $1 million, the rate will be $6.90/$500 (a 200% increase).
All changes in transfer and recording costs are updated in our Seller Net Sheet and Buyer Estimate Calculator.
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