Learn about Harford County’s transfer tax: a quick guide

What is the type of transfer tax?

Transfer taxes may vary according to local regulations, but are usually divided into three types: state, city, and county. Here is a brief introduction to how Harford County works.

National transfer tax

At the state level, Maryland transfer tax is levied at 0.5% of the purchase price (or actually considered) of the property. However, first-time home buyers in the state who purchase primary residence are eligible to be taxed at a rate of 0.25%.

First-time home buyers must submit a waiver form to determine eligibility.

County transfer tax

Harford County has transfer and record taxes, combined with state-level taxes.

Harford’s transfer tax collects 1% of the price of a home selling price.

Record tax is $6.60 per $1,000 for home sales.

Other transfer fees

In addition to the transfer tax, additional fees may be considered, such as fees for homeowners’ associations or local neighborhood organizations. As these may vary by location, it is recommended to consult a professional.

If you are considering selling a home without a real estate agent, seeking professional advice can clarify the process and help you understand your expectations about the process Pros and cons of selling a home without a real estate agent.

Is transfer tax deductible?

Unfortunately, transfer tax is not taxable. However, the seller can reduce its capital gain obligations.

Capital gainsdefined as profits obtained from the sale of a house or property, paid federal taxes just like profits from the sale of other assets.

According to the IRS, sellers can choose to treat Payment tax as sale feeallowing them to subtract these from the closing price of the house. By doing so, they can reduce the capital gains tax owed to any profits they earn.

Harford County Transfer Tax Free

According to the Harford County website, the first $30,000 of the sale price of a home can be exempted from the county’s transfer tax as long as the home changes are property for residential improvements.

Additionally, transfers of mortgages or any other instruments that burden the property are tax-free.

There are other exemptions Maryland The seller may be eligible for a relationship with the buyer.

• When property is transferred to a state agency, state itself, or political subdivision within the state.
• When property transfers between family members or family partners, such as spouse, son, daughter, stepson, stepdaughter, parents, siblings, grandchildren, grandparents, grandparents or domestic partners.

Estimated Harford County Transfer Tax

If you are ready to sell a Harford County home, it’s time to estimate what you’re earning from the sale. look Homelight’s Network Revenue Calculator. This easy-to-use tool can help you calculate such as closing costs, transfer taxes, agency fees, etc., as well as the costs you may want to improve your property. This will give you a better understanding of the money you can earn for selling a home.

If you want to be more at ease, consider working with experts Harford County Real Estate Agent. Homelight can connect you with trusted professionals in Maryland today who can help you review your options, bring home to buyers, and earn the highest dollar by selling your home.

Editor’s Note: This post is for educational purposes only and is not intended as legal or financial advice. Quotations of Harford County Area Tax Services or Attorneys should not be construed as endorsement.

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