If you own or rent a home in Montgomery County, several Montgomery County property tax exemptions and credits can lower your annual bill. The main ones are the Homestead Tax Credit, the income-based Homeowners’ Property Tax Credit (with a county supplement on top), a county senior credit, a full exemption for 100% disabled veterans, an assessment reduction for legally blind residents, and a Renters’ Tax Credit. Each has its own eligibility rules, and almost all of them run through the Maryland State Department of Assessments and Taxation (SDAT) rather than the county itself.
Homestead Tax Credit
The Homestead Tax Credit caps how much your taxable assessment can rise in a single year, no matter how much the market value actually jumped. Montgomery County uses the maximum allowed under Maryland Tax-Property § 9-105: 10%.1Maryland General Assembly. Maryland Tax-Property Code Section 9-105
In practice, if your assessed value rises from $400,000 to $460,000, only $40,000 of that increase becomes taxable in the first year. The credit covers the tax on the remaining $20,000, and the rest phases in over later years.
To qualify, the home must be your principal residence and you must live there at least six months of the year, including July 1.2Maryland Department of Assessments and Taxation. Maryland Homestead Property Tax Credit Program Convert the home to a rental and the credit disappears. The Homestead credit is unusual in one helpful way: you apply once through Maryland OneStop and never have to renew.3Maryland OneStop. Homestead Tax Credit Eligibility Application
Homeowners’ Property Tax Credit
The Homeowners’ Property Tax Credit is income-based. It caps property tax at a set percentage of your gross household income, and the state covers anything above that. Combined gross household income for 2025 must be $60,000 or less to qualify for the 2026 credit.4Maryland OneStop. Homeowners’ Property Tax Credit Application Form 2026
The state’s sliding scale sets your “tax limit” like this:
- First $8,000 of income: 0%
- Next $4,000: 4%
- Next $4,000: 6.5%
- Income above $16,000: 9%
If your actual property tax bill exceeds that calculated limit, the difference is credited back.5Maryland Department of Assessments and Taxation. Homeowners’ Property Tax Credit Program
Montgomery County adds a supplement. It doubles the maximum assessment used in the calculation to $300,000 and stretches the income formula, so households above the state cutoff can still receive county-funded relief. You do not file a separate application; applying for the state credit puts you in line for the county supplement automatically.6Montgomery County, Maryland. Property Tax Credit and Exemption Information Homeowners aged 70 or older can file retroactively for up to three prior years.
You must submit your prior year’s federal tax return, authorize income verification, and live in the home at least six months of the year including July 1. This one has to be renewed every year. The deadline for the 2026 credit is October 1, 2026.
Senior Tax Credit
Montgomery County offers its own credit for older homeowners under County Code § 52-110, authorized by Maryland Tax-Property § 9-258. It knocks 20% off the county portion of your property tax for seven consecutive years.7American Legal Publishing. Montgomery County Code Sec 52-110 – Property Tax Credit for Individuals 65 and Above Three groups qualify:
- Long-term residents age 65 or older who have lived in the same home for at least 40 years, with an assessed value no higher than $700,000 at the time of the first application.
- Retired military members age 65 or older, with an assessed value no higher than $550,000 at the time of the first application.
- Surviving spouses of retired military members, who must be at least 65 and not remarried.
The credit reduces county taxes only. State property tax is not affected.8New York Codes, Rules and Regulations. Maryland Code Tax-Property 9-258 – Dwellings of Certain Elderly Individuals and Veterans
Disabled Veteran Exemption
Veterans with a permanent, 100% service-connected disability rating from the U.S. Department of Veterans Affairs pay no property tax on their primary residence. The disability must be permanent, reasonably certain to last the veteran’s lifetime, and not the result of the veteran’s own misconduct. The home must be occupied by no more than two families and must be the veteran’s legal residence.9Maryland Department of Assessments and Taxation. Real Property Exemptions
The exemption carries over to a surviving spouse who has not remarried if the veteran owned the home at death, or if the spouse acquired the home within two years of the veteran’s death and either the veteran or the spouse was a Maryland resident at that time. Surviving spouses of service members who died in the line of duty also qualify, even without a disability rating on the service member.
You apply with a VA certification confirming the 100% rating. There is no filing deadline — applications are accepted year-round.10Maryland Department of Veterans and Military Families. State Property Tax Exemptions
Blind Individual Exemption
Maryland exempts $40,000 of assessed value from property tax when the home is owned by a legally blind resident.11New York Codes, Rules and Regulations. Maryland Code Tax-Property 7-207 – Blind Individual or Spouse’s Home A surviving spouse continues to receive the exemption as long as the occupancy rules are still met. You cannot combine this exemption with the disabled veteran exemption on the same property.
Renters’ Tax Credit
Renting rather than owning does not shut you out entirely. Maryland’s Renters’ Tax Credit pays up to $1,000 a year to offset the property tax built into rent. You need a real lease, the unit must be your principal residence for at least six months of the year, and the building cannot itself be tax-exempt.12Maryland Department of Assessments and Taxation. Renters’ Tax Credits
Two eligibility tracks apply:
- If you are 60 or older, or 100% disabled, eligibility is based on the relationship between your gross household income and your monthly rent.
- If you are under 60, you must have had at least one dependent under 18 in the home, meet published income limits, and not receive federal or state housing subsidies or live in public housing.
Income for this program means all gross household income before deductions, including non-taxable income, Social Security, and retirement benefits. Applications are due October 1 of the year you’re claiming.13Maryland OneStop. Renters’ Tax Credit Application Form RTC 2026
How to Apply and Key Deadlines
Every program listed here is administered by SDAT, not by Montgomery County. Applications go through Maryland OneStop online or by mail to SDAT. Once approved, credits and exemptions appear as line-item reductions on your next annual property tax bill, and you can check your current assessment and any active exemptions through SDAT’s real property search.
- Homestead Tax Credit: one-time application, no renewal.
- Homeowners’ Property Tax Credit: annual, due October 1, prior year’s federal return required. The county supplement is triggered automatically.
- Renters’ Tax Credit: annual, due October 1.
- Disabled Veteran Exemption: no deadline, VA certification required.
- Blind Individual Exemption: filed with SDAT.
- Senior Tax Credit (County Code § 52-110): filed with SDAT for the county’s determination.
Missing the October 1 deadline generally means waiting a full year, with no retroactive relief. The one meaningful exception is the Homeowners’ Property Tax Credit for applicants aged 70 or older, who can go back up to three prior tax years.6Montgomery County, Maryland. Property Tax Credit and Exemption Information
Appealing a Denial or Assessment
If SDAT denies a credit or you think your assessed value is too high, Maryland provides a three-level appeal. Start with an informal meeting with an assessor from the local Supervisor of Assessments office. These hearings run about 15 minutes and focus on how the appraisal was calculated.14Maryland Department of Assessments and Taxation. Assessment Appeal Process
If the answer still isn’t right, you have 30 days from the final notice to appeal to the Property Tax Assessment Appeals Board (PTAAB), an independent panel of local residents. There is no filing fee. Beyond PTAAB sits the Maryland Tax Court, which is more formal, exchanges evidence before hearing, and typically issues decisions within about a month. Circuit Court review is available after that. Most homeowners resolve the dispute at the first or second level.