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HB 1398

State Transfer Tax - Temporary Suspension

2026 Regular Session Introduced by Lauren Arikan and 6 co-sponsors

HB 1398 temporarily suspends Maryland's transfer tax on real property sales, reducing transaction costs but eliminating state revenue during the suspension period.

Hearing 3/03 at 1:00 p.m.
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Bill Summary · HB 1398

Legislative bill overview

HB 1398 proposes a temporary suspension of Maryland's state transfer tax, which is a tax imposed on the sale or transfer of real property. The bill would reduce or eliminate this tax for a defined period, lowering costs for property buyers and sellers during the suspension window.

Why is this important

The transfer tax affects housing affordability and transaction costs in Maryland's real estate market. Suspending it could stimulate property sales and reduce friction in home purchases, but it also represents foregone state revenue that must be offset or absorbed elsewhere in the budget.

Potential points of contention

  • Revenue impact: The state loses tax income during suspension, raising questions about how this affects education, transportation, and other services funded by general revenue
  • Equity concerns: Property transfers skew toward higher-income households, so tax suspension may disproportionately benefit wealthier Marylanders rather than those with greater affordability needs
  • Temporary vs. permanent: Declaring it "temporary" may create pressure to make suspension permanent, complicating long-term budget planning and creating uncertainty for the real estate market

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

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