Maryland Non-Resident Seller Transfer Withholding Tax
Maryland Non-Resident Seller Transfer Withholding Tax is very confusing, Realtors, title companies & accountants all with different perspectives. The clear part of the picture, Maryland Non-Resident sellers are taxed at 7.5% of the total proceeds, after mortgage pay-off and settlement costs. (8.25% if they are a non-resident entity).
What if you moved within the last year to year and a half? What’s the defining moment? Well, at settlement you’ll be asked for your driver’s license for ID purposes, that’s standard operating procedure at settlement. Secondly, what does the state department of assessments have on file? Does it list the property as your primary residence? If not, you will be paying the tax or at least, it will be held in escrow until all the wrinkles are worked out. Apparently, if it was your primary residence for at least 3 of the last 5 years, then you may be exempt.
I am not an accountant or an attorney, I am, however, confused....or maybe not?
On $100,000 proceeds that $7,500 all because I moved out of state for work, retirement or just because? Holy Cow! See Comptroller of Maryland website.
On $100,000 proceeds that $7,500 all because I moved out of state for work, retirement or just because? Holy Cow!
See Comptroller of Maryland website.