Maryland Real Estate Exam Math Practice

Math questions make up approximately 10% of the national section of the Maryland real estate exam. Maryland also tests the state transfer tax rate — a straightforward calculation that many candidates miss by using the wrong rate.

Essential Formulas

Commission Commission = Sale Price × Commission Rate Example: 5% commission on a $400,000 sale = $400,000 × 0.05 = $20,000

Commission Split Listing broker splits 50/50 with buyer's broker: Each broker receives: $20,000 × 0.50 = $10,000 If listing agent splits 60/40 with the broker (agent gets 60%): Agent earns: $10,000 × 0.60 = $6,000

Maryland Transfer Tax Maryland state transfer tax = 0.5% of sale price Example: $350,000 × 0.005 = $1,750 (state transfer tax) Note: County transfer taxes are additional. Combined rate is typically ~1.5% total. Total transfer tax (state + county at 1.0%): $350,000 × 0.015 = $5,250

Proration Used for property taxes, rent, and HOA fees at closing. Method: Daily rate = Annual amount ÷ 360 (or 365 if specified) Seller's share = Daily rate × Number of days seller owned property in the closing period

Example: Annual taxes = $4,500, closing October 15. Days Jan 1 through Oct 15 = 285 days (using 30-day months: 9 months × 30 + 15 days = 285) Daily rate = $4,500 ÷ 360 = $12.50/day Seller owes: $12.50 × 285 = $3,562.50 (debit seller, credit buyer at closing)

Loan-to-Value (LTV) LTV = Loan Amount ÷ Appraised Value $320,000 loan on $400,000 property: $320,000 ÷ $400,000 = 80% LTV

Down Payment Down Payment = Sale Price × Down Payment % 20% down on $380,000: $380,000 × 0.20 = $76,000 down Loan amount: $380,000 − $76,000 = $304,000

Practice Problems

Problem 1: A home in Baltimore sells for $425,000. The listing broker charges 5.5% and splits equally with the buyer's broker. The listing agent receives 55% of the listing broker's share. What does the listing agent earn? *Total commission:* $425,000 × 0.055 = $23,375 *Listing broker's share:* $23,375 × 0.50 = $11,687.50 *Listing agent's share:* $11,687.50 × 0.55 = $6,428.13

Problem 2: Maryland state and county transfer taxes total 1.5%. What is the total transfer tax on a $280,000 sale? $280,000 × 0.015 = $4,200

Problem 3: Annual property taxes are $5,040. Closing is July 1. Using a 360-day year, how much does the seller owe for taxes at closing? Days Jan 1 through July 1 = 6 months × 30 = 180 days Daily rate: $5,040 ÷ 360 = $14/day Seller owes: $14 × 180 = $2,520

Exam Day Tips for Math

PSI provides an on-screen calculator — use it for every calculation.
Write down what you know before you calculate.
For transfer tax questions, pay attention to whether the question asks for state tax only (0.5%) or total tax (state + county).
Always check whether the proration question specifies 360 or 365 days.

Maryland Math Practice

[CARealestate.com/states/maryland](https://carealestate.com/states/maryland) includes math practice problems with step-by-step solutions. 5 free questions — no signup needed.

Maryland Real Estate Exam Math Practice