In Montgomery County, Maryland, property tax bills are split into two installments: the first is due September 30 and the second is due December 31. Those are the Montgomery County property tax due dates that matter for owner-occupied homes and business properties. If you would rather pay the full year at once, you can prepay the second installment by September 30 at no extra charge, but you need to tell your mortgage lender before May 1 to formally switch to annual billing.
The Two Installment Deadlines
Maryland Tax-Property Code § 10-204.3 requires every county to offer a semi-annual payment schedule for owner-occupied residences and business properties.1Maryland General Assembly. Maryland Tax – Property Code Section 10-204.3 Your annual bill is split into two equal parts:
- First installment: due July 1, payable without interest through September 30.
- Second installment: due December 1, payable without interest through December 31.
You can prepay the second installment by September 30 with no service charge, which effectively turns the schedule into a single annual payment.1Maryland General Assembly. Maryland Tax – Property Code Section 10-204.3 To officially opt into the annual payment track, notify your mortgage lender before May 1.2Montgomery County Government. Montgomery County Department of Finance – Property Tax Due Dates
Miss September 30 and interest plus penalties begin accruing on October 1. The same rule applies to the second installment after December 31.2Montgomery County Government. Montgomery County Department of Finance – Property Tax Due Dates There is no grace period.
If Your Lender Pays Through Escrow
Most homeowners with a mortgage have an escrow account, meaning the lender collects a portion of the property tax each month and pays the county directly when the bill comes due. Under Maryland law, an escrow servicer must pay in semi-annual installments unless the homeowner provides written instructions to pay annually.1Maryland General Assembly. Maryland Tax – Property Code Section 10-204.3
Here is the catch that trips people up. Montgomery County does not automatically send your tax bill to your lender; the lender has to request billing information from the county. Supplemental tax bills go only to the homeowner, never to the lender. If you receive a supplemental bill and your taxes are escrowed, forward it to your lender yourself.3Montgomery County, Maryland. Frequently Asked Questions – Department of Finance Supplemental bills are due within 30 days.
Even with escrow, confirming that your lender actually paid on time is your job. Lenders often use third-party tax service bureaus, and there can be a month or more between when the lender sends the funds and when the county credits your account.3Montgomery County, Maryland. Frequently Asked Questions – Department of Finance If something goes wrong, the county holds the property owner liable for the delinquency, not the lender.
What Happens If You Pay Late
Delinquent bills accrue a combined charge of 1⅔% per month on the unpaid balance, which works out to 20% per year. That total breaks down into 8% annual interest and 12% annual penalty, set by County Council resolution.4Montgomery County Government. Montgomery County Department of Finance – Interest and Penalty Assessed on Property Tax Bills
Interest and penalty are calculated on the net amount of the bill after any credits are applied.4Montgomery County Government. Montgomery County Department of Finance – Interest and Penalty Assessed on Property Tax Bills On a $5,000 delinquent installment, you would owe roughly $83 in combined charges after one month. After six months, that figure approaches $500. The charges compound because the penalty applies to the unpaid balance including previously accrued amounts.
If the Bill Stays Unpaid: Tax Sale
If your property taxes remain unpaid, the county is required by law to sell your property’s tax lien at public auction.5Maryland General Assembly. Maryland Code GTP 14-808 Montgomery County holds a sealed-bid sale annually on the second Monday in June.6Montgomery County, Maryland. Tax Sale Information and Procedures
The sale involves tax lien certificates, not the property itself. A buyer purchases the right to collect the delinquent taxes from you, along with the ability to eventually foreclose if you do not pay.7Maryland Department of Assessments and Taxation. Office of the State Tax Sale Ombudsman You still own the property after a tax sale and can redeem it by paying off the full lien amount. The redemption interest rate for Montgomery County is 6% per year, or as otherwise set by the County Council.8Maryland General Assembly. Maryland Tax – Property Code Section 14-820
The certificate holder can file to foreclose your right of redemption after nine months for a principal residence or six months for a non-principal residence. The certificate becomes void if the holder does not begin foreclosure within two years of the sale date.8Maryland General Assembly. Maryland Tax – Property Code Section 14-820 Once a foreclosure action is filed, the clock moves fast. If you receive any notice related to a tax sale, contact the Maryland State Tax Sale Ombudsman or a local attorney right away.
How to Pay Your Bill
Montgomery County offers four payment methods, and the fees vary:9Montgomery County, Maryland. Tax Information – Department of Finance
- Online through the county’s Real Property Tax Payment Portal, using an electronic check at no charge, or a credit or debit card for a convenience fee of approximately 2.3% of the payment.
- By phone at 240-777-8898, by electronic check (free) or credit/debit card (2.3% fee).
- By mail, with a check payable to Montgomery County, Maryland and your payment coupon, sent to P.O. Box 824845, Philadelphia, PA 19182-4845. The county does not accept money orders.
- In person at the Division of Treasury, 27 Courthouse Square, Suite 200, Rockville, MD. Cash, check, and card are accepted; the 2.3% fee applies to card payments.
The convenience fee goes to the payment processor, not the county, and it is non-refundable even if you later receive a property tax refund.9Montgomery County, Maryland. Tax Information – Department of Finance For a $5,000 tax payment, that fee adds roughly $115 on a credit card versus nothing by e-check.
Finding Your Bill and Account Number
Your annual tax bill arrives by mail each July and contains your property account number and bill number. Include the account number with any mailed payment to prevent processing delays.
If you have lost your bill, look up your account through the Montgomery County Department of Finance website by searching your street address or the owner’s name. The online lookup shows the current amount due for each installment. Confirm the exact figure before paying so an underpayment does not leave a small balance behind that triggers late charges after the deadline passes.