Montgomery County, Maryland charges a recordation tax of $4.45 per $500 on all amounts, with premiums above $500,000, under Bill 17-23, and caps annual rent increases on many rentals.
Montgomery County adds three local layers to Maryland's rules: a tiered recordation tax, a yearly rental license and a rent stabilization law. For the Maryland rules that apply statewide, see DSCR loans in Maryland.
How much is Montgomery County's recordation tax?
Since October 1, 2023, Montgomery County's recordation tax is $4.45 per $500 on all amounts, a $2.08 base plus a $2.37 school increment, with added premiums per $500 above $500,000, under Bill 17-23.
| Amount | Rate per $500 |
|---|---|
| All amounts (base plus school increment) | $4.45 |
| Premium, $500,000 to $600,000 | $2.30 |
| Premium, $600,000.01 to $750,000 | $5.75 |
| Premium, $750,000.01 to $1,000,000 | $6.33 |
| Premium, over $1,000,000 | $6.90 |
Exception: The county page does not say whether each premium applies only to the amount within its band. Get the figure from the title company.
According to Montgomery County Bill 17-23 recordation tax changes, Montgomery County Department of Finance, as of October 2026.
Do Montgomery County rentals need a license?
Yes. Owners renting a single-family home or condo must get a county rental housing license every year, at $130 for a single-family home and $70 for a garden-style condo, and an unlicensed rental can draw a $500 civil citation.
- The license term runs July 1 to June 30.
- Rentals built before 1978 must be tested for lead and registered with the Maryland Department of the Environment.
Exception: Fees were effective July 1, 2024. Check the county's current fee schedule before applying.
According to the Montgomery County single-family rental license application (Rev. 06/03/2024), Department of Housing and Community Affairs, as of October 2026.
Does Montgomery County limit rent increases?
Yes. Under Bill 15-23, annual rent increases on covered units are capped at the lesser of CPI-U plus 3% or 6%, and the county set the maximum allowable increase at 5.2% effective July 1, 2026.
- Only one increase is allowed in 12 months, with 90 days' written notice and a two-year lease renewal offer.
- Exemptions include units owned by a natural person who owns two or fewer rental units in the county, and new construction offered for rent for less than 23 years.
Exception: An LLC-owned rental may not fit the natural-person exemption. Check the regulations for your ownership structure.
According to the Montgomery County Rent Stabilization overview for landlords and the Montgomery County Register, March 2026 notices, 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.