MD HB1213

Replaces the flat 0.5% state transfer tax rate with a graduated, tiered structure based on property type and sale price, with rates ranging from 0.25% to 1.5%

Single-family residential properties taxed at 0.25% for sales under $300,000, scaling up to 1.5% for properties selling at $3,000,000 or more

Deed-restricted affordable housing properties (requiring 15% of units affordable to households at 80% or less of area median income) receive preferential lower rates, maxing out at 0.5% for sales of $10,000,000 or more

Nonresidential and non-deed-restricted multifamily properties face graduated rates starting at 0.25-0.375% for lower-value transactions and increasing to 1.25-1.5% for sales of $40,000,000 or more

Takes effect July 1, 2026, applying to instruments recorded on or after that date