Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1213*
HOUSE BILL 1213
Q6 6lr2270
By: Delegates Ruth, Lehman, Pasteur, and Terrasa
Introduced and read first time: February 11, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
State Transfer Tax – Rate – Alterations 2
(Housing Affordability for Buyers and Sellers) 3
FOR the purpose of altering the State transfer tax rate; and generally relating to the State 4
transfer tax. 5
BY repealing and reenacting, with amendments, 6
Article – Tax – Property 7
Section 13–203 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Tax – Property 13
13–203. 14
(a) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE 15
MEANINGS INDICATED. 16
(II) “AFFORDABLE” MEANS THAT HOUSING C OSTS DO NOT 17
EXCEED 30% OF A HOUSEHOLD’S INCOME. 18
(III) “DEED–RESTRICTED PROPERTY” MEANS MULTIFAMILY 19
RESIDENTIAL PROPERTY THAT IS DEE D–RESTRICTED TO INCLUD E 15% OF UNITS 20
THAT ARE AFFORDABLE TO HOUSEHOLDS EARNIN G 80% OR LESS OF THE AREA 21
MEDIAN INCOME. 22
2 HOUSE BILL 1213
(2) Except as provided in subsections (a–1) and (b) of this section, the rate 1
of the transfer tax is: 2
(I) FOR SINGLE–FAMILY RESIDENTIAL PROPERTY: 3
1. 0.25% OF THE CONSIDERATION PAYABLE FOR THE 4
INSTRUMENT OF WRITING IF THE CONSIDERATION IS LESS THAN $300,000; 5
2. 0.375% OF THE CONSIDERATION PAYABLE FOR THE 6
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $300,000 BUT LESS 7
THAN $400,000; 8
3. 0.5% of the consideration payable for the instrument of 9
writing IF THE CONSIDERATION IS AT LEAST $400,000 BUT LESS THAN $650,000; 10
4. 0.75% OF THE CONSIDERATION PAYABLE FOR THE 11
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $650,000 BUT LESS 12
THAN $800,000; 13
5. 1% OF THE CONSIDERATION PAYABLE FOR THE 14
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $800,000 BUT LESS 15
THAN $1,000,000; 16
6. 1.25% OF TH E CONSIDERATION PAYA BLE FOR THE 17
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $1,000,000 BUT LESS 18
THAN $3,000,000; AND 19
7. 1.5% OF THE CONSIDERATION PAYABLE FOR THE 20
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $3,000,000; 21
(II) FOR DEED–RESTRICTED PROPERTY: 22
1. 0.25% OF THE CONSIDERATION PAYABLE FOR THE 23
INSTRUMENT OF WRITING IF THE CONSIDERATION IS LESS THAN $1,000,000; 24
2. 0.375% OF THE CONSIDERATION PAYABLE FOR THE 25
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $1,000,000 BUT LESS 26
THAN $10,000,000; AND 27
3. 0.5% OF THE CONSIDERATION PAYABLE FOR THE 28
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $10,000,000; 29
(III) FOR MULTIFAMILY RESI DENTIAL PROPERTY OTHER THAN 30
HOUSE BILL 1213 3
DEED–RESTRICTED PROPERTY: 1
1. 0.25% OF THE CONSIDERATION PAYABLE FOR THE 2
INSTRUMENT OF WRITING IF THE CONSIDERATION IS LESS THAN $1,000,000; 3
2. 0.375% OF THE CONSIDERATION PAYABLE FOR THE 4
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $1,000,000 BUT LESS 5
THAN $5,000,000; 6
3. 0.5% OF THE CONSIDERATION PAYABLE FOR THE 7
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $5,000,000 BUT LESS 8
THAN $10,000,000; 9
4. 0.75% OF THE CONSIDERATION PAYABLE FOR THE 10
INSTRUMENT OF WRITIN G IF THE CONSIDERATI ON IS AT LEAST $10,000,000 BUT 11
LESS THAN $20,000,000; 12
5. 1% OF THE CONSIDERATION PAYABLE FOR THE 13
INSTRUMENT OF WRITIN G IF THE CONSIDERATI ON IS AT LEAST $20,000,000 BUT 14
LESS THAN $40,000,000; AND 15
6. 1.25% OF THE CONSIDERATION PAYABLE FOR THE 16
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $40,000,000; AND 17
(IV) FOR NONRESIDENTIAL PROPERTY: 18
1. 0.375% OF THE CONSIDERATION PAYABLE FOR THE 19
INSTRUMENT OF WRITING IF THE CONSIDERATION IS LESS THAN $5,000,000; 20
2. 0.5% OF THE CONSIDERATION PAYABLE FOR THE 21
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $5,000,000 BUT LESS 22
THAN $10,000,000; 23
3. 1% OF THE CONSIDERATION PAYABLE FOR THE 24
INSTRUMENT OF WRITIN G IF THE CONSIDERATI ON IS AT LEAST $10,000,000 BUT 25
LESS THAN $20,000,000; 26
4. 1.25% OF THE CONSIDERATION PAYABLE FOR THE 27
INSTRUMENT OF WRITIN G IF THE CONSIDERATI ON IS AT LEAST $20,000,000 BUT 28
LESS THAN $40,000,000; AND 29
5. 1.5% OF THE CONSIDERATION PAYABLE FOR THE 30
INSTRUMENT OF WRITING IF THE CONSIDERATION IS AT LEAST $40,000,000. 31
4 HOUSE BILL 1213
[(2)] (3) The consideration: 1
(i) includes the amount of any mortgage or deed of trust assumed 2
by the grantee; and 3
(ii) subject to item (i) of this paragraph, includes only the amount 4
paid or delivered in return for the sale of the property an d does not include the amount of 5
any debt forgiven or no longer secured by a mortgage or deed of trust on the property. 6
(a–1) (1) Except as provided in subsection (b) of this section, the rate of the 7
transfer tax is [0.5%] THE APPLICABLE RATE UNDER SUBSE CTION (A) OF THIS 8
SECTION of the consideration paid for the transfer of a controlling interest in a real 9
property entity as defined in § 13 –103 of this title that has developed real property under 10
Section 42 of the Internal Revenue Code, the Low Income Housing Tax Credit Program. 11
(2) The consideration under this subsection shall be the actual payment 12
made by the purchaser to the seller for the purchase of the interest. 13
(b) (1) In this subsection, “first –time Maryland home buyer” means an 14
individual who has never owned in the State residential real property that has been the 15
individual’s principal residence. 16
(2) If there are two or more grantees, this subsection does not apply unless 17
each grantee is a first–time Maryland home buyer or a co–maker or guarantor of a purchase 18
money mortgage or purchase money deed of trust as defined in § 12 –108(i) of this article 19
for the property and the co –maker or guarantor will not occupy the residence as the 20
co–maker’s or guarantor’s principal residence. 21
(3) Notwithstanding any other provision of law, for a sale of improved 22
residential real property to a first–time Maryland home buyer who will occupy the property 23
as a principal residence, the rate of the transfer tax is 0.25% of the consideration payable 24
for the instrument of writing and the transfer tax shall be paid entirely by the seller. 25
(4) To qualify for the exemption under paragraph (3) of this subsection, 26
each grantee or an agent of the grantee shall provide a statement that is signed under oath 27
by the grantee or agent of the grantee stating that: 28
(i) 1. the grantee is an individual who has never owned in the 29
State residential real property that has been the individual’s principal residence; and 30
2. the residence will be occupied by the grantee as t he 31
grantee’s principal residence; or 32
(ii) 1. the grantee is a co –maker or guarantor of a purchase 33
money mortgage or purchase money deed of trust as defined in § 12 –108(i) of this article 34
for the property; and 35
HOUSE BILL 1213 5
2. the grantee will not occupy the res idence as the 1
co–maker’s or guarantor’s principal residence. 2
(5) A statement under paragraph (4) of this subsection by an agent of a 3
grantee shall state that the statement: 4
(i) is based on a diligent inquiry made by the agent with respect to 5
the facts set forth in the statement; and 6
(ii) is true to the best of the knowledge, information, and belief of the 7
agent. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2026, and shall be applicable to instruments of writing recorded on or after July 1, 2026. 10