Selling Maryland real estate but live outside the state? Here’s what you need to know!
If you own and are selling a property in Maryland, but do not currently reside in Maryland you will be required to fill out a form Form MW506NRS - Return of Income Tax Withholding for Nonresident Sale of Real Property. The title company or closing attorney is usually responsible for making sure funds required to pay for this tax are withheld at settlement. After settlement the title company pays the withholding tax due to the state clerk when the deed is recorded. Check with your title company or closing attorney to see if there are exemptions.
Effective January 1, 2016:
For individuals, the withholding tax is 7.5%
For businesses or corporations the withholding tax is 8.25%
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If you are thinking of selling your Maryland real estate, I’m here to assist you. Call or text 443.286.4365 or email me at Phillup411@gmail.com.