Maryland property taxes combine a flat statewide rate of $0.112 per $100 of assessed value with a local rate set by your county or municipality, and the local piece is what drives most of the variation in your bill. For the 2025–2026 fiscal year, county rates run from $0.6742 in Montgomery County to $2.2480 in Baltimore City.1Maryland Department of Assessments and Taxation. 2025-2026 Tax Rates and Homestead Credit Caps Where you live, what your home is worth, and which credits you file for will determine what you actually pay.
How Your Bill Is Calculated
Two taxes land on every Maryland property: a state tax and a local tax. Both use the same math. Take your assessed value, divide by 100, and multiply by the rate.
The state rate has held steady at $0.112 per $100. Your county or city sets its own rate each year after finalizing its budget, and SDAT posts the updated numbers in August.2Maryland Department of Assessments and Taxation. Tax Rates If your home sits inside an incorporated municipality, you’ll see a third line on the bill for the municipal rate.
A worked example: a home assessed at $350,000 in a jurisdiction with a combined state and local rate of $1.10 per $100 would owe about $3,850 per year before any credits ($350,000 ÷ 100 × $1.10).
How Your Property Gets Assessed
The Maryland Department of Assessments and Taxation (SDAT) is responsible for valuing residential property. Rather than reappraising everything at once, SDAT splits each county into three groups and revalues roughly a third of accounts every year, so your property gets a fresh appraisal once every three years.3Maryland Department of Assessments and Taxation. A Homeowner’s Guide to Property Taxes and Assessments
When a reassessment pushes your value up, the increase phases in over three years: one-third the first year, two-thirds the second, and the full amount by year three.4Maryland General Assembly. Maryland Code Tax-Property 8-103 – New Statewide Value If your value stayed flat or dropped, the lower figure takes effect right away.5Maryland Department of Assessments and Taxation. SDAT 2026 Reassessment News Release
Your reassessment notice arrives in late December of your reappraisal year. It shows the new market value along with the phased-in amounts you’ll be taxed on for the next three years.6Maryland Department of Assessments and Taxation. Questions and Answers About Real Property Assessments
Credits That Can Lower What You Owe
Maryland runs several credit programs, and a couple of them apply widely enough that many homeowners qualify without realizing it.
Homestead Tax Credit
The Homestead Tax Credit caps how fast your taxable assessment can rise. The state cap is 10% per year regardless of how much market value climbed, and counties and municipalities can set a tighter cap, as low as 5%.7Maryland General Assembly. Maryland Code Tax-Property 9-105 – Homestead Property Tax Credit
Here’s the catch that trips people up: you have to file a one-time application to receive the credit. A 2007 law requires every homeowner to apply, including long-time owners who assumed they were already covered. If you never submitted the form, you may be paying more than you need to. Applications go through SDAT online or by mail or fax.8Maryland Department of Assessments and Taxation. Maryland Homestead Property Tax Credit Program The property has to be your primary residence; rentals and second homes don’t qualify.7Maryland General Assembly. Maryland Code Tax-Property 9-105 – Homestead Property Tax Credit
Homeowners’ Property Tax Credit
This income-based credit helps households whose property tax eats a disproportionate share of their budget. Combined gross household income must stay at or below $60,000, and net worth, excluding the home and retirement accounts, must stay under $200,000.9Maryland General Assembly. Maryland Code Tax-Property 9-104 – Homeowners Property Tax Credit You must own and live in the property for at least six months of the year including July 1, and apply by October 1.10Maryland Department of Assessments and Taxation. Homeowners’ Property Tax Credit Program
“Gross income” is broad. Social Security, pensions, railroad retirement, and other items that may not be taxable federally still count. Household income includes what your spouse and other occupants earn, though dependents and anyone paying you rent are excluded. Filing by April 15 gets the credit applied to your July bill rather than issued as a later adjustment.10Maryland Department of Assessments and Taxation. Homeowners’ Property Tax Credit Program
Disabled Veteran Exemption
Veterans with a permanent, 100% service-connected disability as rated by the U.S. Department of Veterans Affairs pay no property tax on their home and surrounding yard.11Maryland General Assembly. Maryland Code Tax-Property 7-208 – Disabled Veteran or Spouses Home The disability must be expected to last the veteran’s lifetime and cannot have been caused by the veteran’s own misconduct. Active-duty service members with a permanent service-connected disability also qualify. The exemption extends to surviving spouses of veterans who died in the line of duty or who held a qualifying disability, as long as the spouse still owns the same home or acquires a replacement within two years. SDAT handles the application.
Renters’ Tax Credit
You don’t have to own a home to get property tax relief in Maryland. Renters who meet certain age, disability, or dependent-related income limits can receive up to $1,000 per year.12Maryland OneStop. Renters Tax Credit Application Form RTC Thresholds depend on household size and whether you’re over 60, have a disability, or have dependents under 18, so there’s no single cutoff.13Maryland Department of Assessments and Taxation. Renters Tax Credits Applications are due October 1.
Payment Deadlines and Late Charges
Maryland’s property tax year runs from July 1 through June 30. Bills go out in July or August, and the full amount is technically due on July 1.14New York Codes, Rules and Regulations. Maryland Code Tax-Property 10-102 – Due Dates
If you live in your home, Maryland law puts you on a semi-annual schedule automatically. The first half is due by September 30 and the second half by December 31. You can also pay in full by September 30.15Maryland General Assembly. Maryland Code Tax-Property 10-204.3 – Semiannual Payment Schedule Properties that aren’t owner-occupied residential or qualifying business property don’t get the split option; the full balance is due by September 30.
Miss a deadline and interest starts right away. The state charges 1% per month on overdue state taxes.16Maryland General Assembly. Maryland Code Tax-Property 14-602 – State Interest Rate for Property Tax Counties pile on their own penalties, and some jurisdictions reach close to 20% annually once interest and penalty components are combined. These charges can’t be waived, so pay on time even if you’re planning to appeal.
If You Fall Far Behind: The Tax Sale
Unpaid taxes end up at the county’s annual tax sale, where an investor buys a certificate covering what you owe. You don’t lose your home immediately, but a redemption clock starts.
For non-owner-occupied properties, the certificate holder can file a foreclosure complaint as early as six months after the sale. For owner-occupied homes, the window extends to nine months. Before filing, the certificate holder has to send two written notices, with the first no earlier than four months after the sale for non-owner-occupied property (seven months for owner-occupied) and the second at least a week later.17Maryland General Assembly. Maryland Code Tax-Property 14-833 – Foreclosure of Rights of Redemption
To get your property back before foreclosure is filed, you’ll owe the sale amount plus interest, any additional taxes the certificate holder has paid since the sale, recording costs, a title search fee up to $250, and attorney’s fees up to $500. Costs climb once a foreclosure action is underway. If the certificate holder doesn’t file within two years, the certificate expires, though most investors file well before then.17Maryland General Assembly. Maryland Code Tax-Property 14-833 – Foreclosure of Rights of Redemption
Appealing Your Assessment
If your reassessment notice looks too high, you have 45 days from the notice date to file an appeal online or by mailing the paper form that came with the notice to your local assessment office.18Maryland Department of Assessments and Taxation. Assessment Appeal Process The process has three levels.
The first step is a Supervisor’s Level hearing, an informal meeting with a local assessor. Bring comparable home sales, photos of deferred maintenance, or anything else suggesting the appraised value is off. The assessor will explain how they reached the number, and you can point out what they may have missed.18Maryland Department of Assessments and Taxation. Assessment Appeal Process
If the supervisor’s decision goes against you, you have 30 days to appeal to the Property Tax Assessment Appeal Board (PTAAB), which reviews evidence from both sides and issues a written decision.18Maryland Department of Assessments and Taxation. Assessment Appeal Process
The final administrative step is the Maryland Tax Court, an independent state agency that holds a more formal hearing where legal arguments carry real weight.19Maryland Tax Court. Petition Forms By this stage you’ll want strong evidence: a professional appraisal, detailed comparable sales data, or documentation of property issues that affect value. Appraisals for tax appeals typically run $250 to $500 or more depending on the property, so it only pays off if the projected tax savings over the three-year assessment cycle clearly beat the fee.