Enter the property value, mortgage amount, and recordation tax rate into the calculator to determine the tax amount.
Recordation Tax Calculation Formula
The following formula is used to calculate the recordation tax amount.
Tax Amount = (Property Value + Mortgage Amount) * (Recordation Tax Rate / 100)
Variables:
- Tax Amount is the total recordation tax ($)
- Property Value is the value of the property being recorded ($)
- Mortgage Amount is the amount of mortgage on the property ($)
- Recordation Tax Rate is the percentage rate of the tax (%)
To calculate the tax amount, sum the property value and mortgage amount, multiply by the recordation tax rate, and divide by 100.
What is Recordation Tax?
Recordation tax is a tax imposed by the state of Maryland on the recording of real estate transactions. This tax is typically calculated based on the property’s value and the amount of the mortgage. Understanding this tax is crucial for anyone buying or selling property in Maryland as it affects the overall cost of the transaction. Proper calculation of the recordation tax ensures that you are fully aware of the financial obligations associated with your real estate deal.
How to Calculate Recordation Tax?
The following steps outline how to calculate the recordation tax using the given formula.