Baltimore County’s local tax rates include a 3.20% county income tax, a real property tax of $1.10 per $100 of assessed value, a business personal property tax of $2.75 per $100, a county transfer tax of 1.5%, and a county recordation tax of $5.00 per $500 of sale price (1.0%). Real estate transactions also carry separate state transfer and recordation taxes on top of the county’s.
County Income Tax
Baltimore County residents pay a local income tax of 3.20%, calculated on Maryland state taxable income. It’s often called a “piggyback” tax because it rides on the state return. There’s no separate county filing. The local tax is computed and paid through Maryland Form 502, and the Comptroller’s office routes the revenue to the county.
Maryland law requires every county to set a local rate between 2.25% and 3.30%.1Office of the Comptroller of Maryland. Maryland Income Tax Rates and Brackets – Taxpayer Services Baltimore County sits near the top of that range but not at the ceiling. For most W-2 workers, employer withholding handles it automatically alongside state and federal tax.
Real Property Tax
The county real property tax rate is $1.10 per $100 of assessed value, applied uniformly to residential, commercial, and industrial real estate.2Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps To calculate the annual county property tax, divide the assessed value by 100 and multiply by 1.10. A home assessed at $300,000 owes $3,300 in county property tax.
The Maryland State Department of Assessments and Taxation (SDAT) sets each property’s assessed value. SDAT reviews every property once per three-year cycle, and any increase in market value is phased in equally over the following three years.3Maryland General Assembly. Fiscal and Policy Note for House Bill 1518 Property is assessed at 100% of full cash value.
Homestead Tax Credit
If you own and occupy your home as a principal residence, the Homestead Tax Credit caps how much your taxable assessed value can rise year to year. In Baltimore County that cap is 4%. If your property’s market value jumps 15% in a given year, the assessed value used on your tax bill can only grow by 4%.2Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps You must file a one-time eligibility application with SDAT to receive the credit.4Maryland OneStop. Homestead Tax Credit Eligibility Application Skipping the application means losing the credit even if you’d otherwise qualify, so it’s worth handling as soon as you close.
Other Property Tax Credits
The county offers targeted relief beyond the Homestead Credit. Disabled veterans and their surviving spouses can receive a full exemption from county real property tax on their home. Blind individuals and their surviving spouses qualify for a $15,000 reduction in assessed value. Disabled law enforcement officers, firefighters, and rescue workers who suffered a permanent total disability in the line of duty have their own credit.5Baltimore County Government. Tax Credits Applications are due by September 30 of the tax year in which the credit is to start. If you qualified for the veteran or blind exemption in earlier years but never applied, the county can issue refunds going back up to three years.
When Property Tax Bills Are Due
Baltimore County mails real property tax bills on July 1 each year, and payment is due by September 30. If you’re on semiannual billing, the first installment is also due September 30. Miss that deadline and interest starts accruing right away. The county grants no grace period.6Baltimore County Government. Late or Unpaid Taxes
Any balance outstanding after December 31 is delinquent and subject to interest and penalties. The county sends a delinquent notice in February and a final tax sale notice on March 1, giving you 30 days to pay in full with all accumulated interest and penalties. If you still don’t pay, the property can be sold at the annual tax sale. One trap worth knowing: the county is not responsible for non-delivery of your tax bill, and by law it cannot waive penalties just because you didn’t receive one.6Baltimore County Government. Late or Unpaid Taxes
Business Personal Property Tax
Businesses operating in the county pay a separate tax on tangible personal property, including furniture, fixtures, machinery, and equipment, at $2.75 per $100 of assessed value.2Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps That’s two and a half times the real property rate, which catches some new owners off guard. Businesses file a personal property return with SDAT each year; SDAT certifies the assessed value, and the county applies its $2.75 rate. The filing obligation exists even when the assets are modest.
Transfer and Recordation Taxes at Closing
Selling or buying real estate in Baltimore County triggers four one-time taxes at closing: a county transfer tax, a state transfer tax, a county recordation tax, and a state recordation tax. They’re paid when the deed is recorded and are separate from the annual property tax. Many buyers and sellers only budget for two.
Transfer Taxes
The county transfer tax is 1.5% of the sale price.7Baltimore County Government. Deed Transfer and Recordation For residential owner-occupied property, the first $22,000 is exempt, saving up to $330. Maryland adds a state transfer tax of 0.5%.8Maryland General Assembly. Maryland Tax – Property Code 13-203 Combined, transfer tax on a Baltimore County sale runs roughly 2.0%.
First-time Maryland homebuyers get meaningful relief. If you’ve never owned residential property in Maryland that served as your principal residence, the state rate drops from 0.5% to 0.25%, and the seller is required to pay it entirely.8Maryland General Assembly. Maryland Tax – Property Code 13-203 You’ll sign a sworn statement at closing confirming your first-time buyer status.
Recordation Taxes
The county recordation tax is $5.00 for each $500 of the sale price (or any fraction of $500), an effective rate of 1.0%.7Baltimore County Government. Deed Transfer and Recordation The state adds $2.50 per $500, or 0.5%. Combined recordation tax runs 1.5%.
What a Sale Actually Costs in Taxes
On a $400,000 sale of residential owner-occupied property, the closing taxes shake out roughly like this:
- County transfer tax: 1.5% × ($400,000 − $22,000) = $5,670
- State transfer tax: 0.5% × $400,000 = $2,000
- County recordation tax: 1.0% × $400,000 = $4,000
- State recordation tax: 0.5% × $400,000 = $2,000
- Total: approximately $13,670
How these are split between buyer and seller is usually negotiated in the purchase contract, though Maryland law assigns certain portions to the seller by default when the buyer is a first-time homebuyer purchasing improved residential property.
Federal Deductibility
If you itemize on your federal return, Baltimore County’s income tax and property taxes are deductible as state and local taxes under Internal Revenue Code Section 164.9Office of the Law Revision Counsel. 26 U.S. Code 164 – Taxes The business personal property tax qualifies as well, as an annual ad valorem tax. Transfer and recordation taxes paid at closing are not deductible as taxes; federal law treats them as part of the buyer’s cost basis or as a reduction in the seller’s amount realized.
The federal SALT deduction cap limits how much of your combined state and local taxes you can deduct. For 2026, the cap is $40,000 for most filers, with a reduced cap of $20,000 for married filing separately. The cap phases down for filers with modified adjusted gross income above $500,000, decreasing by 30 cents for each dollar over the threshold, but it won’t drop below $10,000. With the county income tax alone taking 3.20% of Maryland taxable income, homeowners with moderately valued properties can reach the SALT cap quickly once state income tax is added in.