Maryland property tax rates have two mandatory layers and sometimes a third. Every property owner pays a flat state rate of $0.112 per $100 of assessed value, plus a local county or Baltimore City rate that ranges from $0.791 in Talbot County to $2.248 in Baltimore City for the 2025–2026 fiscal year.1Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps Homeowners inside an incorporated town pay a municipal rate on top of both. Statewide, the average effective tax runs around 0.92% of market value, but that average hides the fact that where you live matters far more than any statewide figure.
The State Rate
The General Assembly sets a single state property tax rate that applies to every property in Maryland. Under Maryland Tax-Property Code Section 6-101, all property located in the state is subject to assessment and taxation.2Maryland General Assembly. Maryland Tax Property Code Section 6-101 The current rate is $0.112 per $100 of assessed value, and it shows up as its own line on every bill.1Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps
Revenue from the state rate is dedicated to paying off bonds that fund capital projects like bridge repairs and university construction. It cannot be diverted to general operating expenses. Because this rate is identical in every jurisdiction, it is the one piece of your bill that does not change based on location.
County and Baltimore City Rates
The local rate is the largest piece of a Maryland tax bill, and it varies sharply across the 23 counties and the independent City of Baltimore. County governments set their rates each year during the spring budget cycle. The 2025–2026 picture looks roughly like this:1Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps
- Lowest rates (under $0.90): Talbot County ($0.791), Queen Anne’s County ($0.830), Worcester County ($0.845), Wicomico County ($0.847), and St. Mary’s County ($0.848). These are generally rural Eastern Shore or Southern Maryland jurisdictions.
- Middle range ($0.95–$1.10): Anne Arundel ($0.977), Calvert ($0.967), Caroline ($0.980), Cecil ($0.982), and Carroll ($1.018), among others.
- Higher rates ($1.10 and up): Baltimore County ($1.100), Charles County ($1.141), and Frederick County ($1.100).
- Baltimore City: $2.248, more than double most suburban counties. The city funds its own school system, police, and fire department independently from Baltimore County, and the rate reflects that.
The dollar impact is substantial. A $350,000 home in Talbot County generates roughly $2,770 in county taxes; the same home in Baltimore City produces about $7,868 before any credits apply. If you’re comparing properties across county lines, pull the current rate for each jurisdiction before you compare prices.
Municipal and Special District Rates
Living inside an incorporated city or town adds a third layer. Municipalities like Annapolis, Frederick, and Rockville charge their own property tax rate to fund local services such as trash collection, street lighting, and town police. The municipal rate is on top of the state and county rates.
Some counties offer a tax differential credit to residents of incorporated municipalities, reducing the county portion of the bill to account for services the town provides instead. The credit varies by county and does not always fully offset the municipal rate, so a home inside town limits usually carries a higher combined rate than one in the surrounding unincorporated area.
Special taxing districts add charges for specific infrastructure like stormwater management or erosion control. They apply only to properties within a defined boundary and fund only improvements in that zone. The amounts are modest next to the county rate but appear as separate line items.
Calculating Your Bill
Your bill is the sum of each taxing authority’s rate applied to your assessed value. Divide the current phased-in assessment by 100, then multiply by the combined rate of every jurisdiction that taxes your property.
For a home with a phased-in taxable assessment of $300,000 in Anne Arundel County:
- State tax: ($300,000 ÷ 100) × $0.112 = $336
- County tax: ($300,000 ÷ 100) × $0.977 = $2,931
- Total: $3,267 before any credits
If the same home sat inside the City of Annapolis, the municipal rate would push the total higher.
How Assessments Work
The State Department of Assessments and Taxation (SDAT) handles valuations for every county and Baltimore City.3Maryland Department of Assessments and Taxation. Maryland Department of Assessments and Taxation Maryland uses a triennial cycle: SDAT divides the state’s roughly two million property accounts into three groups and reappraises one group each year, using recent comparable sales and neighborhood conditions.
The phase-in rule changes what the rate actually costs you. If your property’s value increased, only one-third of the increase is added to your taxable assessment each year across the three-year cycle. If the value dropped, the lower figure takes effect immediately in the first year with no phase-in.4Maryland Department of Assessments and Taxation. A Homeowner’s Guide to Property Taxes and Assessments Increases are gradual; decreases are instant.
SDAT mails assessment notices in December. The notice shows the new market value assigned to your land and improvements and starts the 45-day clock for an appeal.
Credits That Lower What You Pay
Homestead Tax Credit
The Homestead Tax Credit caps how much your taxable assessment can rise each year on your principal residence. The statewide cap is 10%, so even if your phased-in value jumps by more than 10% in a year, you only pay taxes on a 10% increase.5Maryland Department of Assessments and Taxation. Maryland Homestead Property Tax Credit Program Counties and municipalities can set a lower cap for their portion of the bill, and several do. Check the SDAT tax rates publication each year to see your jurisdiction’s cap.
The common mistake: the credit is not automatic. You have to file a one-time application to establish eligibility.6Maryland OneStop. Homestead Tax Credit Eligibility Application If you’ve never applied, you aren’t receiving it, even after years of ownership. SDAT’s online Real Property search tool shows whether you already have one on file.
Homeowners’ Property Tax Credit
The Homeowners’ Property Tax Credit, sometimes called the circuit breaker, limits your bill based on income. To qualify, combined gross household income cannot exceed $60,000, and net worth (excluding the home and retirement accounts) must be under $200,000. The credit applies only to taxes on the first $300,000 of assessed value, and unlike the Homestead Credit, you must reapply every year.7Maryland Department of Assessments and Taxation. Homeowners’ Property Tax Credit Program
The formula sets a sliding tax ceiling based on income, and anything above that ceiling is credited back. For a household earning $40,000, the tax limit works out to roughly $2,840. Retirees and others on fixed incomes in rising-assessment counties should check eligibility every year.
Appealing Your Assessment
You have 45 days from the date on your December assessment notice to file an appeal.8Maryland Department of Assessments and Taxation. Assessment Appeal Process Miss that window and you live with the number for the rest of the three-year cycle.
The first level is an informal hearing with an assessor designated by the local Supervisor of Assessments. No lawyer is required. Bring evidence that comparable homes in your area sold for less than SDAT’s estimate, or documentation of conditions that reduce value such as structural problems, flood risk, or environmental contamination. If the first-level decision goes against you, the next step is the local Property Tax Assessment Appeal Board, then the Maryland Tax Court. Filing costs nothing.
When Bills Are Due
Tax bills go out in July or August for the fiscal year that begins July 1.4Maryland Department of Assessments and Taxation. A Homeowner’s Guide to Property Taxes and Assessments Maryland law requires every county and municipality to offer a semi-annual payment schedule for owner-occupied residential and business properties.9Maryland General Assembly. Maryland Code Tax Property 10-204.3 The first installment is due by September 30 and the second by December 31. Paying the full annual amount by September 30 avoids the service charge some counties attach to the second installment.
What Happens If You Don’t Pay
Unpaid property taxes become a lien on the property from the day they’re due, and interest and penalties start accruing immediately. In some jurisdictions, delinquent county taxes accrue interest at 1.5% per month.
If taxes remain unpaid, the county tax collector is required to sell the property at a public tax sale within two years of the date the tax went into arrears. The lien is auctioned to the highest bidder. You keep a right to redeem by paying the full lien amount plus interest, penalties, and the purchaser’s expenses. Six months after the sale (nine months for owner-occupied homes in Baltimore City), the buyer can file in circuit court to permanently foreclose that right. If the court rules against you, the buyer receives absolute title to the property.10Maryland Department of Assessments and Taxation. Office of the State Tax Sale Ombudsman
Costs escalate quickly once a foreclosure action is filed because you become responsible for the buyer’s attorney fees on top of the back taxes. If you’re falling behind, contact the county tax office before the sale date.