Baltimore City
House flipping in Baltimore, MD: transfer taxes, property tax and a flip calculator
Every flip in Baltimore pays deed and transfer taxes twice: once when you buy and once when you sell. In Baltimore City they add up to about 3% of the price. Here is what each one is, who usually pays it, how property tax works for investors, and a calculator to run your deal.
Projected net profit
$47,476
15.8% margin on ARV over 6 months
Cash needed
$42,524
Return on cash
112%
Max offer
$170,500
$30k profit, 12% margin
70% rule
$160,500
70% of ARV minus rehab with 10% contingency
Where every dollar goes
- Purchase
- $160,000
- Rehab with contingency
- $49,500
- Buy closing costs
- $3,501
- Loan points and fees
- $5,880
- Loan interest
- $9,364
- Taxes, insurance, utilities
- $3,280
- Selling costs
- $21,000
- Total cost
- $252,524
- Break-even ARV
- $248,976
Planning defaults: hard money 11%, 2 points, $1,500 fees, 90% of price and 100% of rehab, interest on drawn funds; 5.5% commission and 1% concessions; state closing and transfer taxes. Not a quote.
Comps, rehab, refi and a verdict for a real address. Your numbers come with you.
Transfer and recording taxes in Baltimore
| Level | What it is |
|---|---|
| State | Maryland state transfer tax: 0.5% of consideration (0.25% for qualifying first-time Maryland buyers who will occupy, with the seller paying it in that case). Tax-Property 13-203. (source) |
| Local | Baltimore City transfer tax 1.5% of consideration plus recordation tax $5 per $500 (1%). Over $1M a yield tax adds 0.6% (transfer) and 0.15% (recordation). (source) |
| On your loan | Maryland recordation tax applies to deeds of trust too: in Baltimore City $5 per $500 of principal debt (1%) on a purchase-money loan recorded with the deed (purchase-money exemptions may apply, verify). (source) |
Who pays: set by contract and custom.
What it costs on a typical flip
- Buy at $200,000: deed and transfer taxes
- $6,000
- Record a $180,000 purchase loan
- $1,800
- Sell at $300,000: deed and transfer taxes
- $9,000
This adds every cited rate on each side, buyer and seller, so you see the full cost of the round trip. Who actually pays each piece depends on custom and your contract. Recording fees and title insurance are extra.
Property tax in Baltimore for investors
Maryland reassesses each property every three years; increases phase in equally over the next three years and decreases take effect immediately. The Homestead Tax Credit caps taxable increases only on owner-occupied homes. (source)
For a flip, property tax is part of carrying cost every month you own the house. For a rental, budget the bill the county will send after you buy, not the seller's bill.
One more Baltimore rule to know
Baltimore City Code 14-8: a seller must disclose in writing, before contract, whether the property has an unabated Vacant Building Notice; only a Use and Occupancy Permit removes it. Violation is a misdemeanor up to $1,000. (source)
Run the numbers
The calculator above uses general closing cost defaults outside Virginia, North Carolina and West Virginia. For Baltimore, add the taxes above to your numbers: about $7,800 on the buy side and $9,000 on the sale in this example.
Questions
How much is the transfer tax in Baltimore?
The cited deed and transfer taxes total about 3% of the price in Baltimore City. On a $300,000 sale that is about $9,000. Who pays: set by contract and custom.
Is Baltimore a good place to flip houses?
It depends on the deal, not the city. Buy at a price that leaves room for every cost: closing and transfer taxes on both ends, loan points and interest, carry, commission and concessions. Run the numbers on each house.
Is there a tax on the loan in Maryland?
Yes. Maryland recordation tax applies to deeds of trust too: in Baltimore City $5 per $500 of principal debt (1%) on a purchase-money loan recorded with the deed (purchase-money exemptions may apply, verify).
Facts checked 2026-10-10 against the linked official sources. Tax rates and fees change; confirm them with your closing attorney, title company or the locality. Not legal, tax or lending advice.
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