Transfer taxes are extra fees you have to pay when you buy a house in Maryland. They’re like a bonus cost on top of the house price. Maryland has two types of transfer taxes: state and county.

Understanding Transfer Taxes:

• State Transfer Tax: This is a fee set by the state of Maryland. It’s usually 0.5% of the house’s price. For example, if your house costs $200,000, you’d pay $1,000 in state transfer tax.
• County Transfer Tax: Some counties in Maryland have their own transfer tax on top of the state tax. The amount varies depending on where you’re buying. It could be a fixed fee or a percentage of the house price. Make sure to check the rate in your county.

Why Transfer Taxes are Important?

It affects how much money they’ll need to pay when they buy a house. These taxes are like extra fees that come with buying a home, and they can add up quite a bit. By knowing about these taxes, first-time buyers can plan ahead and make sure they have enough money saved up.

They can also see if there are any ways to lower the taxes they have to pay, which could save them some cash. So, understanding these taxes helps first-time buyers make smart choices and avoid any surprises when they’re ready to buy their dream home.