Taxes Paid at Closing

District of Columbia

Recordation Tax

There is zero transfer / recordation tax for refinances.

Recording fees (Deeds, Deeds of Trust, etc.)

• $31.50 for a Deed
• $156.50 for a Deed of Trust

Property taxes (paid semi-annually)

Further Reading: Real Estate Tax and Escrow Reserves Explained

• Taxes due 3/31 for the period of 10/1 – 3/31
• Taxes due 9/15 for the period of 4/1 – 9/30

UPDATED 5 JUNE 2020 | INFORMATION IS RELIABLE BUT NOT GUARANTEED.

Maryland

Recordation tax

• State Transfer Tax is 0.5% of transaction amount for all counties
• State Recordation or Stamp Tax (see chart below)
• County Transfer Tax (see chart below)

Borrower pays on the difference of the principal payoff and the new mortgage.

• EXAMPLE: Original mortgage was for $500,000 and the principle payoff is now $350,000. The new mortgage is for $400,000
• $400,000 - $350,000 = $50,000
• The taxed amount is on $50,000
• Borrower must affirm under oath:
  1. Borrower is the original mortgagor
  2. Mortgaged property is the principal residence of the original mortgagor
  3. The amount of unpaid principal of the original mortgage or deed of trust that is being refinanced.

Borrower pays on the entire loan amount for investment properties.

The chart below shows the total amount of taxes, by county, to be paid at settlement based on the transaction amount.

Recording fees (Deeds, Deeds of Trust, etc.)

• $60 for each Deed or Deed of Trust
• $50 per release

This generally results in a total recording charge of approximately $110 for purchase transactions.

Property taxes

Further Reading: Real Estate Tax and Escrow Reserves Explained

Principal residences are paid semi-annually, and non-principal residences and investment properties are paid annually.

For principal residences:

• Taxes due on 9/30 for the period of 7/1 – 12/31
• Taxes due on 12/31 for the period of 1/1 – 6/30

For non-principal residences and investment properties:

• Taxes due on 9/30 for the period 7/1 – 6/30

UPDATED 5 JUNE 2020 | INFORMATION IS RELIABLE BUT NOT GUARANTEED

Virginia

Recordation tax

• State and County Trust Tax = $3.33 per $1000 of the new Deed of Trust loan amount
• $2.00 per $1000 is charged on "new money" (difference of increase in loan amount) if payoff lender and new originating lender are the same.
  • EXAMPLE: Original mortgage was for $500,000 and the principle payoff is now $350,000. The new mortgage is for $400,000
  • $400,000 - $350,000 = $50,000
  • The taxed amount is on $50,000

Recording fees (Deeds, Deeds of Trust, etc.)

Property taxes

Further Reading: Real Estate Tax and Escrow Reserves Explained

Taxes are paid semi-annually, due dates vary by county. A few counties are outlined below:

UPDATED 5 JUNE 2020 | INFORMATION IS RELIABLE BUT NOT GUARANTEED.