Costs of Selling Land in Maryland

Selling Costs in Maryland: What to Know

Maryland stacks three taxes on a deed: the 0.5% state transfer tax, a county recordation tax and, in many counties, a county transfer tax. State law presumes buyer and seller split them equally unless the contract says otherwise.

This page lists the costs of selling land in Maryland, who pays each one, how capital gains and nonresident withholding work, and how the numbers change when you sell to a cash buyer who pays closing costs. This page is general information, not legal or tax advice.

State transfer tax

Maryland's state transfer tax is 0.5% of the price under Tax-Property section 13-203. A reduced 0.25% rate applies only to a home sold to a first-time Maryland buyer who will live in it, so it does not reach most land sales.

If the land has an agricultural use assessment, an agricultural land transfer tax can also apply. It is charged in addition to the other transfer taxes. Ask the county or the Department of Assessments and Taxation if your parcel is assessed as farmland.

County recordation and transfer taxes

Every county and Baltimore City sets its own recordation tax, charged per $500 of price when the deed is recorded. Many counties also add a local transfer tax. These local taxes are often larger than the state tax.

For example, the Cecil County circuit court clerk lists a recordation tax of $4.10 per $500. Check the land records page of the circuit court clerk and the finance office in your county for current rates.

Who pays what

Maryland is unusual because the default is in the statute. Real Property section 14-104 presumes that recordation tax and state and local transfer taxes are shared equally between seller and buyer unless the contract says otherwise. The rule shifts more to the seller for homes sold to first-time buyers, which rarely applies to land.

Other costs follow the contract. Sellers often pay to clear liens and their share of property taxes; buyers often pay recording and title insurance.

• Split by default: state transfer tax, county recordation tax, county transfer tax
• Often seller: lien releases, prorated property taxes
• Often buyer: recording fee, title insurance

Nonresident seller withholding

When a nonresident sells Maryland real property, tax is withheld from the payment before the deed is recorded. For sales after June 30, 2025, the Comptroller sets the rate at 8.75% for nonresident individuals and 8.25% for nonresident entities. It counts toward your Maryland tax, and you get back any excess when you file. Sellers at $1,500,000 or more can no longer ask for a tentative refund.

Settlement company or attorney

Most Maryland sales close through a title or settlement company, and attorneys also conduct settlements. The settlement agent collects the taxes, records the deed with the circuit court clerk and handles any withholding.

Ask for the settlement agent's fee to the seller in writing before you sign.

Capital gains tax when you sell Maryland land

Federal tax applies to the gain, not the full price. Gain is the sale price minus your basis (what you paid plus improvements and costs of buying and selling). If you held the land more than one year, the gain is long-term and the federal rate is 0%, 15% or 20% depending on your taxable income; land held one year or less is taxed at ordinary rates. See IRS Topic 409. Higher earners may also owe the 3.8% net investment income tax (IRS Topic 559).

Maryland taxes the gain as income. From tax year 2025, state rates run from 2% up to 6.5% on the highest incomes, and counties add a local income tax. The Comptroller's Technical Bulletin 58 adds a 2% tax on net capital gains when federal adjusted gross income is over $350,000; land under a conservation or agricultural preservation easement is excluded.

The closing agent usually reports the sale to the IRS on Form 1099-S. If you inherited the land, your basis is generally the value on the date of death, which often shrinks the gain. This page is general information, not legal or tax advice.

How selling to a cash buyer changes your Maryland costs

In a listed sale you pay an agent commission and your share of closing costs out of the price. When you sell to EasyLotBuyer, there are no fees or commissions and we pay the closing costs. You get a cash offer within 24 hours and can close in as few as 7 days.

We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale, so you do not need cash up front. Even though Maryland presumes a split of transfer and recordation taxes, the contract can change that, and our offer covers the closing costs. Start with the Maryland land page or check a rough number with the offer calculator.