Updated July 2026 · Written by James Armel, licensed Maryland Realtor (License #676208) and active investor in Southern Maryland
Most buyers in Maryland are told to budget “2 to 5 percent” for closing costs — and then left to figure out what that actually means on their own. This guide breaks down exactly what you will pay as a buyer in each Southern Maryland county, including taxes, lender fees, title costs, and prepaid items, with real dollar examples at $450,000.
One number to keep in mind before we get into it: on a $450,000 purchase in Southern Maryland, a typical buyer pays between $8,000 and $14,000 in total closing costs, depending on the county, the lender, and how the contract is negotiated. Here is where that money goes.
What Are Buyer Closing Costs in Maryland?
Buyer closing costs in Maryland are the fees and taxes due at settlement on top of your down payment. They fall into three buckets: government taxes (recordation and transfer taxes), lender fees (origination, appraisal, underwriting), and third-party fees (title, settlement, homeowners insurance, escrow deposits). All three show up on your Closing Disclosure — the final document your lender is required to give you at least three business days before closing.
What Taxes Does a Buyer Pay in Maryland?
Maryland buyers are responsible for the recordation tax plus their share of the transfer tax. The recordation tax is the fee charged to record the deed with the county — it is traditionally the buyer’s cost and is not split with the seller. The state transfer tax (0.5% total) is split 50/50 by default, so buyers typically pay 0.25% of the sale price. County transfer taxes are also typically split 50/50.
Important exception: if you are a first-time Maryland homebuyer, the state transfer tax drops to 0.25% total — and the seller pays all of it. You pay zero state transfer tax. This is one of the most underused benefits in Maryland real estate, and many buyers don’t know to ask for it.
| County | Recordation Tax (buyer pays) | Buyer’s Share: County Transfer Tax | Buyer’s Share: State Transfer Tax |
|---|---|---|---|
| Charles County | $10.00 per $1,000 | 0.25% | 0.25% (0% if first-time buyer) |
| Calvert County | $10.00 per $1,000 | None | 0.25% (0% if first-time buyer) |
| St. Mary’s County | $8.00 per $1,000 | 0.5% | 0.25% (0% if first-time buyer) |
| Prince George’s County | $5.50 per $1,000 | 0.7% | 0.25% (0% if first-time buyer) |
| Anne Arundel County | $7.00 per $1,000 | 0.5% | 0.25% (0% if first-time buyer) |
| Howard County | $5.00 per $1,000 | 0.625% | 0.25% (0% if first-time buyer) |
Source: Capitol Title Group rate chart, verified July 2026. Rates subject to change — confirm with your settlement attorney.
For a full breakdown of how transfer taxes are split between buyer and seller — including what sellers pay in each county — see our Maryland Transfer Tax and Recordation Tax guide.
What Are Lender Closing Costs?
Lender fees are the costs your mortgage company charges to process and fund your loan. Every lender charges differently, which is why getting at least two Loan Estimates before choosing a lender is one of the most effective ways to reduce your total closing costs.
- Origination fee: What the lender charges to make the loan. Typically 0.5% to 1% of the loan amount. On a $360,000 loan (80% of $450K), that is $1,800 to $3,600.
- Discount points: Optional prepaid interest to buy a lower rate. One point = 1% of the loan. Whether this makes sense depends on how long you plan to keep the loan.
- Appraisal fee: $400 to $600 for a standard single-family home in Southern Maryland. Paid upfront before closing in most cases.
- Credit report fee: $25 to $50. Small but itemized on your Loan Estimate.
- Underwriting fee: $500 to $900. The lender’s cost to review and approve the file.
- Rate lock fee: Some lenders charge for extended rate locks (60+ days). Ask upfront.
What Are Title and Settlement Fees?
Title and settlement fees cover the work of making sure the property you are buying has a clear title — no liens, unpaid taxes, or competing ownership claims — and the cost of closing the transaction. In Maryland, a licensed settlement attorney typically handles closing.
- Title search: $200 to $400. A search of public records to confirm clean title.
- Lender’s title insurance: Required by your lender. Protects the lender (not you) against title defects. Typically 0.4% to 0.5% of the loan amount.
- Owner’s title insurance: Optional but recommended. Protects you as the buyer for as long as you own the property. One-time premium, typically 0.5% to 0.6% of the purchase price.
- Settlement/attorney fee: $300 to $600 for the buyer’s portion. Covers preparation of closing documents and running the settlement.
- Survey: Not always required but may be needed for rural properties or if the lender requires it. $300 to $600 in Southern Maryland.
What Are Prepaid Items and Escrow Deposits?
Prepaid items are not fees — they are costs you are paying in advance that you would owe anyway. They often surprise buyers because they show up on the Closing Disclosure and look like extra charges, but they are money going into your own escrow account or covering your first days of ownership.
- Prepaid homeowners insurance: First year’s premium paid at closing. Expect $1,200 to $1,800 annually for a typical Southern Maryland home.
- Prepaid mortgage interest: Interest from your closing date to the end of the month. If you close on the 5th, you prepay 25 days of interest.
- Property tax escrow: Typically 2 to 3 months of property taxes deposited into your escrow account at closing so your lender can pay the tax bill when it’s due.
- Homeowners insurance escrow: 2 to 3 months deposited alongside property taxes in the same escrow account.
What Does a Buyer Actually Pay? Real Dollar Examples at $450,000
Here is what the tax-side of buyer closing costs looks like on a $450,000 purchase in each county, assuming a standard (non-first-time) buyer and the default 50/50 split on transfer taxes. Lender fees, title, and prepaid items add roughly $6,000 to $10,000 on top of these depending on your lender and loan type.
| County | Recordation Tax | Buyer Transfer Tax (state + county) | Total Tax-Side Closing Costs |
|---|---|---|---|
| Charles County | $4,500 | $2,250 | $6,750 |
| Calvert County | $4,500 | $1,125 | $5,625 |
| St. Mary’s County | $3,600 | $3,375 | $6,975 |
| Prince George’s County | $2,475 | $4,275 | $6,750 |
| Anne Arundel County | $3,150 | $3,375 | $6,525 |
| Howard County | $2,250 | $3,938 | $6,188 |
Use our free Maryland closing cost calculator to build a complete estimate with your actual purchase price, county, and loan amount.
Does Maryland Have First-Time Homebuyer Benefits at Closing?
Yes — and it is one of the most meaningful financial benefits available to first-time buyers in the state. If you have never owned residential property in Maryland before, the state transfer tax is reduced to 0.25% total, and the seller pays all of it. On a $450,000 purchase, that saves you $1,125 at closing compared to a standard buyer.
Maryland also offers down payment and closing cost assistance through the Maryland Mortgage Program (MMP), administered by the Maryland Department of Housing and Community Development. MMP products include the 1st Time Advantage loan and various Partner Match programs that can contribute toward down payment or closing costs. Eligibility depends on income, purchase price, and county. Verify current programs and limits directly with DHCD or an MMP-approved lender before counting on any specific amount. For a full look at loan types, down payment programs, and the Southern Maryland buying process, see our first-time home buyer guide.
Can You Negotiate Closing Costs as a Buyer in Maryland?
Yes — seller-paid closing costs (also called seller concessions or seller credits) are one of the most common negotiating tools in a buyer’s market. The seller agrees to contribute a set dollar amount toward your closing costs, which reduces your cash due at closing without changing the purchase price. In a competitive market, sellers are less likely to agree to this; in a slower market, it is often on the table.
There are limits: conventional loans cap seller concessions at 3% of the purchase price for buyers putting down less than 10%, and FHA loans cap at 6%. Your lender sets the ceiling based on loan type and down payment.
A second lever is lender credits — your lender agrees to cover some closing costs in exchange for a slightly higher interest rate. This reduces cash needed at closing but increases your monthly payment. Run the numbers carefully before accepting this trade-off.
For the full picture of what sellers typically pay at closing in Southern Maryland, see the Cost of Selling a House in Southern Maryland guide.
Frequently Asked Questions
Who pays closing costs in Maryland, the buyer or the seller?
Both. Buyers typically pay recordation tax, their share of transfer taxes, lender fees, title fees, and prepaid items. Sellers typically pay their share of transfer taxes, real estate commission, and their own title fees. The split is customary but negotiable in the contract.
How much are buyer closing costs in Maryland?
On a $450,000 purchase in Southern Maryland, total buyer closing costs typically run $8,000 to $14,000 — roughly 2% to 3% of the purchase price. The range is wide because lender fees vary significantly from one lender to another. Getting two Loan Estimates before committing to a lender is one of the easiest ways to save $1,000 to $2,000 at closing.
What is the recordation tax in Maryland and who pays it?
The recordation tax is a fee charged by the county to record the deed in public records. It is traditionally paid by the buyer and ranges from $5.00 to $10.00 per $1,000 of the purchase price depending on the county. On a $450,000 purchase, that is $2,250 (Howard County) to $4,500 (Charles or Calvert County).
Do first-time homebuyers pay transfer tax in Maryland?
No — if you qualify as a first-time Maryland homebuyer, you pay zero state transfer tax. The state rate is reduced from 0.5% to 0.25%, and the seller covers all of it. You still pay your share of the county transfer tax (except in Calvert County, which has no county transfer tax). Make sure your contract identifies you as a first-time buyer so the settlement attorney applies the exemption correctly.
What is the cheapest county for buyer closing costs in Southern Maryland?
Calvert County is the best county for buyer tax costs. There is no county transfer tax, and first-time buyers save an additional $1,125 on the state transfer tax. On a $450,000 purchase, a first-time buyer in Calvert County pays $4,500 in recordation tax and nothing in transfer tax — compared to $6,750 or more in most other counties.
Disclaimer: Closing cost figures in this post are estimates based on typical Maryland transactions as of 2026. Actual costs vary by loan type, lender, purchase price, and county. This post is for informational purposes only and does not constitute financial or legal advice. Verify all figures with your lender and title company.
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