LA PLATA, Md. — Charles County has proposed a $594.29 million general fund budget for fiscal year 2026 that avoids raising property or income tax rates. Instead, the county is recommending a single targeted tax increase on real estate transactions known as the recordation tax.
This is the first time since 1991 that the county has proposed raising the recordation tax. The rate would increase from $5 to $7 per $500 of a property’s sale price. County officials estimate the increase would generate $4.3 million to support public schools and $700,000 for affordable housing programs. To implement the change, Charles County has introduced a bill titled “Revisions to Recordation Tax.” The bill would amend Section 281-1 of the Charles County Code to raise the rate to $7 for every $500.
Who Pays the Recordation Tax?
Recordation tax is a one-time fee paid to the county when certain real estate documents, such as deeds or deeds of trust, are recorded. It typically applies to property purchases, some refinancing and property transfers involving a new mortgage. In most cases, the buyer pays this tax at settlement, though responsibility for payment can be negotiated between the buyer and seller.
The proposed increase would not affect homeowners who are not buying, selling or refinancing. It applies only to those involved in qualifying real estate transactions, most commonly, new homebuyers or developers.
Why Increase This Tax?
Officials say the recordation tax was chosen because it targets specific transactions instead of increasing taxes for everyone. The county has not raised property or income taxes since 2013.
According to budget feedback summaries, residents strongly preferred increasing taxes on specific groups, such as new property buyers, rather than implementing general tax increases across all residents.
No Change to Property or Income Taxes
Despite increased school costs, public safety needs and new state-mandated expenses such as teacher and college employee retirement contributions, Charles County is not proposing changes to its property or income tax rates. The county plans to use $21 million from its fund balance to close budget gaps and maintain essential services.
In Summary:
- The proposed budget does not raise property or income taxes.
- The only tax increase is the recordation tax, paid during property transactions.
- Most residents will not be affected unless they buy, sell or refinance property.
The Charles County commissioners voted 3-1 to introduce the proposed recordation tax increase. Commissioner Gilbert Bowling opposed the measure, and Commissioner Ralph Patterson was absent. The public hearing is scheduled for Tuesday, May 20, 2025, at 6 p.m. at the Charles County Government Building in La Plata.
Learn more: Charles County FY 2026 Budget Page
Read the official press release: Charles County Presents Proposed Fiscal 2026 Budget
Contact our news desk at news@thebaynet.com
