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On a $500,000 home in Bowie, the government transfer and recordation taxes alone come to $12,250, and Prince George’s County’s 1.4% transfer tax is the biggest piece at $7,000. Who pays that money is set by Maryland law and by one checkbox in your contract, and if the buyer is a first-time Maryland homebuyer, the default flips almost entirely onto the seller.
Here is how each tax is calculated, who pays it by default, and a worked $500,000 example for both sides of the table.
What are the transfer and recordation taxes in Prince George’s County?
Three government taxes hit every Bowie sale, whether the house is inside city limits or in unincorporated Fairwood or Mitchellville. Prince George’s County’s FY2027 budget (July 1, 2026 to June 30, 2027) keeps the county rates unchanged.
| Tax | Rate (FY2027) | On $500,000 |
|---|---|---|
| Prince George’s County transfer tax | 1.4% of price | $7,000 |
| County recordation tax | $2.75 per $500 of price (0.55%) | $2,750 |
| Maryland state transfer tax | 0.5% of price (0.25% for a qualifying first-time Maryland buyer) | $2,500 ($1,250 first-time) |
| Total | $12,250 ($11,000 first-time) |
The recordation math trips people up: $500,000 divided by $500 is 1,000 units, times $2.75 is $2,750. These taxes are collected at settlement and paid when the deed is recorded in Upper Marlboro.
Who pays transfer and recordation taxes in Maryland?
Under Maryland Real Property Article §14-104(b), if the contract is silent, recordation tax and the state and county transfer taxes are presumed to be shared equally between buyer and seller. That 50/50 split is how most Bowie resales close, though the contract can say otherwise.
First-time buyers change the default. Under §14-104(c), when a first-time Maryland homebuyer will live in the home as a principal residence:
- The seller pays the entire state transfer tax, which drops to 0.25% (Tax-Property §13-203). This is mandatory.
- The seller also pays the entire county transfer tax and recordation tax, unless the contract contains an express agreement that the seller will not pay them entirely.
Maryland defines a first-time homebuyer as someone who has never owned residential property in Maryland as a principal residence. If there are two buyers, both must qualify, unless the second is a non-occupying co-signer on the loan. The buyer signs a sworn statement at settlement.
Worked example: $500,000 Bowie sale, standard 50/50 split
Assume a buyer who has owned in Maryland before, a contract that splits taxes evenly, and a price of $500,000.
| Item | Buyer pays | Seller pays |
|---|---|---|
| County transfer tax (1.4%) | $3,500 | $3,500 |
| State transfer tax (0.5%) | $1,250 | $1,250 |
| Recordation tax ($2.75 per $500) | $1,375 | $1,375 |
| Total government taxes | $6,125 | $6,125 |
Worked example: same sale to a first-time Maryland buyer
| Item | Buyer pays | Seller pays |
|---|---|---|
| County transfer tax (1.4%) | $0 | $7,000 |
| State transfer tax (0.25%) | $0 | $1,250 |
| Recordation tax ($2.75 per $500) | $0 | $2,750 |
| Total government taxes | $0 | $11,000 |
The total tax drops by $1,250, but the seller’s share jumps from $6,125 to $11,000 unless the contract shifts the county and recordation taxes back. The county transfer and recordation pieces are negotiable in the contract; the state 0.25% always stays with the seller.
What else is on a Bowie buyer’s closing statement?
Beyond the taxes, a buyer’s settlement statement usually includes:
- Lender charges: origination, points if you buy down the rate, appraisal and credit report. On a VA loan, the funding fee is 2.15% on first use with less than 5% down, unless you are exempt for a service-connected disability (VA.gov).
- Title: settlement fee, title search, lender’s title insurance and optional owner’s title insurance. Prices vary by company, so get two quotes.
- Prepaids and escrow: homeowner’s insurance for the first year plus a cushion of property tax and insurance in escrow.
- Tax proration: you reimburse or receive credit for property taxes depending on what the seller already paid.
- HOA or condo transfer fees where they apply. Most original Levitt sections in Belair have no mandatory HOA; many newer 20720 and 20721 subdivisions do.
Property tax escrow is where Bowie buyers get surprised. Inside city limits the FY2027 combined rate is $1.890 per $100 of assessment after the city’s 18 cent increase. On a $500,000 assessment that is $9,450 a year, or about $788 a month. Outside city limits the core rate is about $1.432. Our Bowie property tax guide has the full rate breakdown.
What does a Bowie seller pay at closing?
On the seller side, the larger items are:
- Mortgage payoff and any home equity line.
- Listing commission, and buyer agent compensation if you agree to offer it. Both are negotiable and are now handled in separate agreements.
- Your share of transfer and recordation taxes, as shown above.
- Prorated property taxes through the settlement date.
- Any repair credits negotiated after inspection, and any seller concessions toward the buyer’s closing costs.
- Final water reading. City-water sections such as Somerset, Kenilworth and Tulip Grove are billed by the City of Bowie; others by WSSC Water.
Here is a simplified seller net sheet on a $500,000 sale with a 50/50 tax split, a $300,000 payoff and, purely for illustration, 2.5% listing commission and a $5,000 buyer closing cost credit. Your real numbers depend on your agreements.
| Line | Amount |
|---|---|
| Sale price | $500,000 |
| Mortgage payoff (example) | minus $300,000 |
| Listing commission at 2.5% (illustrative) | minus $12,500 |
| Seller share of transfer and recordation taxes | minus $6,125 |
| Credit toward buyer closing costs (example) | minus $5,000 |
| Estimated proceeds before title fees and tax proration | $176,375 |
Are there exemptions that cut the county transfer tax?
A few. Prince George’s County exempts first-time homebuyers who are Prince George’s County police officers, municipal police officers (including Bowie Police) and deputy sheriffs from the 1.4% county transfer tax, and reduces it to 1% for officers who already own a home. The officer must occupy the home as a principal residence and stay in the job for three years, or repay the tax.
On an assumption sale, remember that Maryland’s transfer tax is calculated on the full consideration, including any mortgage the buyer assumes. Taking over a seller’s VA loan does not shrink the tax base. See our assumable VA loan guide for how those deals work.
Can a seller pay the buyer’s closing costs?
Yes, through a seller concession written into the contract, subject to the buyer’s loan program limits. With a median sold-to-list ratio of 100% and a median of 19 days on market across Bowie’s four ZIP codes (Bright MLS data, April to September 2026), concessions are common on homes that have sat past a month and rare on fresh, well-priced listings.
First-time buyers should also look at Prince George’s County’s Pathway to Purchase program, which can cover down payment and closing costs. Our first-time buyer programs guide covers the limits.
Want a written net sheet or a buyer cost estimate on a specific Bowie address? Call or text Bruno at (240) 418-3809, 9 a.m. to 9 p.m. daily, or request a home value estimate to start a seller net sheet.
Sources: Maryland Real Property §14-104, Maryland Tax-Property §13-203, Prince George’s County FY2027 Operating Budget, Revenues, PGCAR police and sheriff transfer tax savings, Comptroller of Maryland Tax Alert on nonresident withholding, Maryland SDAT FY2027 tax rates, VA.gov funding fee and closing costs, Bright MLS data, April to September 2026.
