Baltimore City charges a recordation tax of $5.00 per $500 of the principal debt secured by a mortgage or deed of trust, about 1.0%, according to the Baltimore City Department of Finance.
Baltimore City sets its own recordation and transfer taxes and requires every residential rental unit, including a single-family home, to be registered, inspected and licensed. For the Maryland rules that apply statewide, see DSCR loans in Maryland.
What closing taxes apply to a Baltimore City rental loan?
Baltimore City's recordation tax is $5.00 per $500 of consideration, or of the principal debt secured on a mortgage or deed of trust, and its transfer tax on the deed is 1.5%, or 2% with the state's 0.5%.
| Tax | Baltimore City rate |
|---|---|
| Recordation tax | $5.00 per $500 (about 1.0%) |
| City transfer tax | 1.5% of consideration |
| City plus state transfer tax | 2% |
Exception: The Finance Department lists a refinance exemption that applies only to an original mortgagor's principal residence, which does not fit a rental. Confirm the figures with the title company.
According to the Baltimore City Department of Finance, Recordation Tax and Transfer Tax, as of October 2026.
Do Baltimore City rentals need a license?
Yes. Baltimore City requires all residential rental units, including 1- and 2-family dwellings, to be registered, inspected by a state-licensed, city-registered home inspector, and licensed.
- Registration is $30 per dwelling unit per year for a non-owner-occupied 1-2 family property, under Baltimore City Code Art. 13, 4-8.
- Vacant structures owe an extra annual fee of $100 per residential structure under Art. 13, 4-8.
Exception: License terms, renewal intervals and penalties are set in Art. 13; read them before you close on a Baltimore rental.
According to Baltimore City DHCD rental licensing and Baltimore City Code Art. 13, 4-8, as of October 2026.
What is Baltimore City's property tax rate?
The Maryland Department of Legislative Services lists Baltimore City's real property tax rate at $2.248 per $100 of assessed value for fiscal years 2022 through 2026.
- On a $200,000 assessment, $2.248 per $100 equals $4,496 a year in city property tax.
Exception: Rates are set annually. Check the current year's rate and the property's assessment before you run the numbers.
According to the Maryland Department of Legislative Services, Local Tax Rates table, as of October 2026.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.