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HB 790

State Transfer Tax - Exemption for First-Time Home Buyers - Alterations

2026 Regular Session Introduced by Steve Arentz and 6 co-sponsors

Maryland bill exempts first-time home buyers from state transfer tax to reduce home purchase costs and improve housing market entry affordability, but reduces state revenue.

Hearing 2/17 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 790

Legislative bill overview

HB 790 proposes to create or expand an exemption from Maryland's state transfer tax for first-time home buyers purchasing their primary residence. The bill modifies existing transfer tax provisions to reduce the financial burden on individuals entering the housing market for the first time.

Why is this important

Transfer taxes add significant costs to home purchases, potentially ranging from thousands of dollars depending on property value. Reducing these costs for first-time buyers could improve housing affordability and increase homeownership accessibility, though it also affects state revenue that funds public services.

Potential points of contention

  • Revenue impact: The exemption reduces state tax revenue that currently supports education, infrastructure, and other programs—lawmakers must decide if those services can absorb the loss or require offsetting funding sources
  • Definition challenges: The bill must clearly define "first-time buyer" (some people may have owned property decades ago; others may have recently lost homes to foreclosure) to prevent abuse and ensure fairness
  • Inequitable outcomes: The tax savings benefit higher-income buyers purchasing expensive homes more than lower-income buyers, raising questions about whether this effectively targets those most needing affordability assistance

Compiled from official sources — confirm details with the bill’s official record.

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