More Tax on the Sale of Real Estate?

Maryland has a new year surprise for non-Maryland residents who sell real estate in Maryland. 

For non-Maryland residents who sell real estate in Maryland, the withholding tax on the proceeds of sale has been quietly raised from 8% to 8.75%. This can take a hefty bit out of the proceeds received by a Seller. 

There are ways that a non-resident Seller can lessen, or perhaps avoid this withholding. A Seller must be proactive and plan for the withholding tax well in advance of settlement to take advantage of the ways to lessen or avoid the withholding tax.