You’ve found a place in Sussex County, and one number keeps showing up in your research. It’s 4%, and what’s hard to find is a straight answer on whose pocket it comes from. Is it your Maryland sale proceeds, your cash at the Delaware table, or both? Moving across a state line means two settlements and two tax bills, which can feel like a lot to hold. I’m Nechelle Robinson, a Seniors Real Estate Specialist (SRES) and Certified Senior Advisor (CSA) licensed in Maryland and Delaware. I’ll put Maryland and Delaware transfer tax side by side so you can build one budget. You’ll also know what to ask your lender and settlement attorney.
What Is the Combined Bill on a $500,000 Move?
On a $500,000 move, your combined transfer tax bill runs from about $14,500 to $15,625, depending on your Maryland county.
Let’s put real numbers on it. Here’s a hypothetical, not a client, with $500,000 on both sides and Delaware’s 4% Sussex County rate. It assumes an even split of each state’s tax and no exemptions. The Maryland rates come from the Maryland Department of Legislative Services.
| County | Maryland total | Your half as seller | Delaware half as buyer | Combined bill | Share of price |
|---|---|---|---|---|---|
| Carroll | $9,000 | $4,500 | $10,000 | $14,500 | 2.90% |
| Harford | $10,800 | $5,400 | $10,000 | $15,400 | 3.08% |
| Howard | $11,250 | $5,625 | $10,000 | $15,625 | 3.13% |
Your Delaware half stays flat at $10,000, so Maryland does the moving. Carroll to Howard is a $1,125 difference, which is worth knowing but won’t rewrite your budget.
That 4% you keep seeing covers the whole Delaware tax, and your share is 2% of the price. Maryland adds a second bill on top, which is how the total lands near 3%.
Where Does Delaware’s 4% Come From?
Delaware’s 4% is a Sussex County combined rate built from a 2.5% state tax and a 1.5% local tax.
How the State and County Pieces Stack
Delaware’s transfer tax law sets the state rate at 3%. Where the county or town has enacted the full 1.5% local tax, the state share drops to 2.5%. Sussex County has done that, so 2.5% plus 1.5% gets you to your 4%. Some Sussex County towns have their own transfer tax rules, so confirm what applies to your town with your settlement attorney.
Two bills in the General Assembly would lower the tax. One cuts a quarter point, and the other exempts homes under $350,000 from the state share. As of October 2026, both are still in committee with no vote recorded. I’d budget at 4% until a cut becomes law.
Transfer tax is a one-time cost at closing. The ongoing tax picture after you move lives in my post on Delaware tax savings for Maryland seniors.
How the Delaware Share Splits
The Delaware tax is split equally by statute and custom, negotiable by contract. On a $500,000 purchase, that means $10,000 from you and $10,000 from the seller. Your $10,000 is cash at the Delaware table.
What Does Maryland Add on the Sale Side?
Maryland adds a 0.5% state transfer tax plus county taxes that vary, so there’s no single Maryland number.
Here’s how the three counties in the example compare on their local rates:
- Carroll skips the local transfer tax but carries the highest recordation rate, $6.50 per $500.
- Harford charges a 1.0% local transfer tax plus a $3.30 per $500 recordation tax.
- Howard lands at a 1.25% local transfer tax and a $2.50 per $500 recordation tax.
Maryland Real Property §14-104 presumes buyer and seller share these taxes equally. On $500,000, your half comes to $4,500 in Carroll, $5,400 in Harford, and $5,625 in Howard. Carroll’s total sits lowest because it has no local transfer tax, even with the highest recordation rate of the three.
Selling in another county? Your rates will differ, so ask your settlement attorney for yours before you lock in a number.
Which Bill Comes From Sale Proceeds and Which Needs Cash?
Your Maryland half comes out of your sale proceeds, and your Delaware half is cash at the Delaware table.
Two bills, two sources of money. In the Howard example, $5,625 leaves your proceeds in Maryland and $10,000 has to be in hand in Delaware.
That split is why the order of your closings matters. If you close on Delaware first, your Maryland proceeds haven’t landed, so the $10,000 comes from somewhere else. I cover which closing should come first in a separate post, since the answer changes your cash needs.
Bring these questions to your lender and your settlement attorneys:
- Can the Delaware transfer tax be financed, or does it have to be paid in cash?
- How will my Maryland proceeds reach me if the Delaware closing comes first?
- What are the exact recordation and transfer tax rates in my Maryland county?
- Does my Sussex County town add its own local tax on top of the county’s?
- Do any exemptions or reductions apply to my sale or my purchase?
Collect the answers as you go and ask for them in writing, and your budget firms up with each one.
What Can Change the Number?
A first-time Maryland buyer or a Delaware builder’s contract can move these numbers.
When the Maryland Buyer Is a First-Time Buyer
One curveball is worth planning for. Say your buyer is a first-time buyer who’ll live in the home. Maryland Real Property §14-104 then puts the entire transfer and recordation tax on you as the seller. A contract can change that. Without a change, your Maryland bill climbs to about $7,750 in Carroll, $9,550 in Harford, and $10,000 in Howard. Those figures already reflect the state transfer tax reduction first-time buyers receive. Add Delaware’s $10,000, and your combined bill lands between $17,750 and $20,000. Ask me early whether your buyer fits that profile, because it can add thousands to your budget.
When a Delaware Builder’s Contract Shifts the Tax
Delaware’s equal split is a default, and a builder’s contract can rewrite it. If your contract puts the whole tax on you as the buyer, your Delaware side doubles. That takes it from $10,000 to $20,000 on a $500,000 purchase, a $10,000 swing tucked into one clause. Read it before you sign, and bring the contract to your settlement attorney and your lender.
Bringing Both Bills Into One Budget
Moving across a state line is a big step. The tax math shouldn’t be the part that keeps you up at night. Delaware’s 4% in Sussex County splits equally by default, and Maryland’s tax varies by county. On a $500,000 move, your combined bill runs from about $14,500 to $15,625. A first-time buyer or a builder’s contract can change that. Your Maryland half comes from sale proceeds, and your Delaware half is cash at the table.
I’m a realtor, not a tax advisor, so I can’t give tax advice. Your title company and a tax professional should confirm every final figure. If you have a Maryland sale and a Delaware purchase lined up, reach out to me about your situation and I’ll help you build your two-settlement budget.
