Alert: New recordation tax rates in effect as of October 1, 2023

Earlier this year, the Montgomery County Council raised recordation tax rates, which went effect on October 1, 2023. Previously, there were three rates to consider when calculating recordation taxes:

• A base rate ($2.08 per $500)
• A school increment ($2.37 per $500) for the entirety of the purchase
• A premium rate ($2.30 per $500) for consideration paid above $500,000

As of October 1, the base rate and school increment remain the same, while the premium rate has increased and expanded with three additional tiers. See this chart for details.

GCAAR’s updated Buyer and Seller Estimated Cost Worksheets were published on October 2 and will help you calculate these amounts. GCAAR also has set up an easy-to-use recordation tax calculator, as you'll see below.

The Montgomery County Department of Finance has produced a calculation help sheet as well.

GCAAR fought these tax increases, alongside the 4.7% property tax increase, by testifying against the proposals and launching a comprehensive campaign decrying the massive increase in closing costs that will push homeownership further away from first time buyers. Read more in our statements following the recordation tax vote and on the county’s 2024 operating budget. 

Try our Recordation Tax Calculator!