Maryland Senior Tax Credit: Eligibility, Net Worth Cap, and How to Apply

The Maryland senior property tax credit reduces your property tax bill when your income is low relative to what you owe on your home. The main program, run by the Maryland State Department of Assessments and Taxation (SDAT), is the Homeowners’ Property Tax Credit. It’s open to homeowners of any age, but seniors 65 and older typically benefit most and unlock additional county supplements on top. To qualify, your combined household income must be under $60,000, your net worth under $200,000, and the home must be your principal residence. Apply by April 15 to see the credit on your July tax bill, or by the final October 1 deadline to still receive it that year.¹

Who Qualifies

The state credit has no age minimum on its own. What most people call the “senior tax credit” is actually two things working together: the state Homeowners’ Property Tax Credit, plus a county supplement that many jurisdictions offer only to residents 65 and older.²

Four rules control eligibility for the state credit:

You own and occupy the property as your principal residence, meaning you live there more than half the year and it isn’t primarily used for business.
Your combined gross household income for the prior calendar year is $60,000 or less. This includes wages, Social Security, pensions, annuities, and essentially every other income source.
Your combined net worth is $200,000 or less as of December 31 of the year before you apply.
The dwelling is your principal residence.

These income and net worth limits are set in statute and apply to 2026 applications based on 2025 figures.³

What Counts Toward the $200,000 Net Worth Cap

The net worth test sounds strict, but the biggest assets most retirees hold are excluded. Your home doesn’t count. Neither does the cash value of life insurance, money in qualified retirement plans or IRAs, or tangible personal property such as vehicles, furniture, and belongings.³

What does count: cash in checking and savings, stocks, bonds, other investment accounts, and any real property besides your home. For retirees whose wealth is concentrated in the house and in retirement accounts, the cap is easier to clear than it looks. SDAT measures net worth as of December 31 of the year before your application.⁴

How the Credit Is Calculated

The credit isn’t a flat amount. It pays the difference between your actual property tax bill and a “tax limit” tied to your income. The tax limit uses a sliding scale:¹

First $8,000 of income: 0%
Next $4,000 ($8,001–$12,000): 4%
Next $4,000 ($12,001–$16,000): 6.5%
Income above $16,000: 9%

An example. A senior with $20,000 in combined household income has a tax limit of $780: zero on the first $8,000, plus $160 on the next $4,000, plus $260 on the next $4,000, plus $360 on the remaining $4,000. If the actual property tax bill is $3,200, the credit covers $2,420. Someone with $8,000 or less in income owes nothing under the formula, so the credit covers the whole bill.

This is the “circuit breaker” mechanic: when property taxes get out of proportion to income, the credit absorbs the excess. Lower income means a larger credit.

County Senior Supplements

The state credit is the floor. Many counties add supplements just for homeowners 65 and older, and these can substantially increase total relief. Structures vary.

Montgomery County builds its senior credit on top of the state credit or the county supplement, whichever is higher, to maximize the benefit.² Frederick County gives seniors with household income under $50,000 a supplement equal to 50% of their net county property tax after other credits, with a smaller percentage for those earning between $50,000 and $100,000.⁵ St. Mary’s County offers 10% off county tax liability for up to five years, plus a match of the state credit.⁶

Call your county finance or treasurer’s office to see what’s available locally and whether a separate application is needed. Some counties set higher income ceilings than the state, so even if you’re over the $60,000 state limit, the county supplement may still be within reach.

How and When to Apply

Applications go to SDAT, not your county tax office, though your county may help you file. You can apply online through SDAT’s tax credit portal or mail a paper HTC-1 form. SDAT does not accept applications by email.¹

Two dates matter for 2026:

April 15, 2026. If your completed application arrives by this date and isn’t flagged for audit, the credit appears on your July 1 property tax bill.
October 1, 2026. Final filing deadline. Applications received after April 15 but before October 1 are still processed, but the credit may come as a refund or adjustment rather than a reduction on the original bill.

These are the state deadlines. County supplements can run on their own calendars. St. Mary’s County, for instance, sets May 1 for a credit that shows on the bill and September 1 as its final cutoff.⁶

After you file, SDAT cross-checks your income against tax records and may ask for more documentation. Clean applications submitted before April 15 usually get a decision in time for the July bill.⁴

Documents to Have Ready

Missing paperwork is a common cause of delay. Pull these together first:

Proof of age. A Maryland driver’s license, state ID, passport, or birth certificate showing you’re at least 65.
Proof of ownership and residency. Your most recent property tax bill, deed, or settlement paperwork. Utility bills, voter registration, or a Maryland income tax return can also confirm residency.
Income verification. Copies of your 2025 federal and Maryland tax returns with all schedules. The 2026 credit uses 2025 income.
If you don’t file returns, Social Security statements (SSA-1099), pension or annuity forms (1099-R), or other proof covering all household income.
Non-taxable income documentation. Public assistance, veterans’ benefits, and similar income that doesn’t show on tax returns need award letters or bank statements.

First-time applicants have to submit proof of age and ownership. Returning applicants often don’t need to resubmit those, but income verification is required every year.⁶

You Have to Reapply Every Year

The credit doesn’t renew automatically. Because eligibility hinges on annual income, SDAT wants a fresh application each year. Skip a year and you get no credit that year, even if nothing has changed financially. Put a reminder on the calendar well before April 15 so the credit lands on your July bill instead of coming later as a refund.

If You’re Denied or Lose the Credit

SDAT can deny or revoke the credit for incomplete paperwork, income above $60,000, net worth above $200,000, selling the property, or moving out. A mid-year income bump from a pension change or inheritance can knock you out the following year. SDAT can also audit an application at any time and request verification even after the credit has been granted.⁴

If you’re denied, file a written appeal with SDAT. If SDAT’s final decision goes against you, the next step is the Maryland Tax Court.⁷ A tax attorney is worth considering at that stage, because the Tax Court runs on formal procedures.

Not the Same as Maryland’s Senior Income Tax Credit

Maryland also has a separate income tax credit for residents 65 and older, claimed on your state income tax return rather than through SDAT. It’s a different program with different income limits and its own rules, and it reduces state income tax rather than property tax.⁸ Many seniors qualify for both and should claim each independently.

1
Maryland SDAT. Homeowners’ Property Tax Credit Program
2
Montgomery County Maryland. Montgomery County Senior Property Tax Credit
3
Maryland General Assembly. Maryland Code Tax-Property 9-104
4
Maryland OneStop. Homeowners’ Property Tax Credit Application Form HTC 2026
5
Frederick County, Maryland. Frederick County Code 1-8-66 – Senior Citizens’ Local Supplement to Homeowners Property Tax Credit
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St. Mary’s County, Maryland. Senior Tax Credit Application
7
Maryland General Assembly. Maryland Code Tax-Property 14-512 – Appeals to Maryland Tax Court
8
Maryland General Assembly. Fiscal and Policy Note for House Bill 902