Effective October 1, 2023, Montgomery County transactions will see a new, increased recordation tax. The new schedule is below.
The First $500,000 is taxed at the rate of $8.90 per $1000, or fraction thereof
From $500,000-$600,000, the tax rate is $13.50 per $1000, or fraction thereof
From $600,000.01 to $750,000, the tax rate is $20.40 per $1000, or fraction thereof
From $750,000.01 to $1,000,000, the tax rate is $21.56 per $1000, or fraction thereof
From $1,000,000.01 and over, the tax rate is $22.70 per $1000, or fraction thereof.
The recordation Tax exemption of $100,000 will remain the same for individual buyers who intend to use the property as the individual’s principal residence.
The new recordation tax rates apply to any transaction that occurs on or after October 1, 2023. The County will rely on the latter of the date of the document or the last acknowledgement to determine when the transaction occurs. If a document is received October 1, 2023 or later, the new rates will apply. Therefore, we suggest scheduling settlements well in advance of October 1, 2023 to avoid having your clients pay the new, higher rates.
