Property Taxes in Maryland

Property taxes on real estate in Maryland are collected by local (county or city) governments, but a portion of property taxes go to the state of Maryland. Local governments are responsible for collecting all property taxes, including those for the state of Maryland.

Various property tax credits and exemptions are available, including the Homestead Credit.

Property Tax Bills

Your local government will send a property tax bill in July or August for the current tax year which runs from July 1 to June 30. Taxes are due by September 30, although if you pay sooner you can get a small discount in some jurisdictions.

Taxes can be paid in two installments with the second installment due December 31. However, there is a fee for this. Even if your mortgage company pays the taxes from the escrow it collects in your monthly payment, you should still receive a property tax bill too.

To change your mailing address, you must write a letter to the local government agency that handles your property taxes.

Property Tax Rates

In 2007-08 Maryland property tax rate was $0.112 per $100 of assessed value. Local tax rates, which are in addition to the state tax, ranged from $0.475 to $2.268. Taxes are calculated by multiplying the tax rate by the assessed value of the property and dividing by 100.

For example, for a house assessed at $100,000, the Maryland property tax would be $112 (.112 x 100,000 รท 100=$112).

Tax Assessments

Property tax assessments are done every three years. Property tax assessments come out at the end of the December prior to the tax year that begins in July. Properties that are the principal residence of their owner-occupied are eligible for the Homestead Credit, which caps the amount property tax assessments can increase. So be sure to check that the information about whether this is your principal residence is correct.

Property tax assessment increases are phased in equal installments over three tax years. If you disagree with your assessment you may appeal your assessment. The assessment will include a deadline for an appeal.

Maryland's Homestead Credit caps the tax assessment increase allowed at 10% or less.

In addition to the Homestead Credit, which is for all owner-occupied properties, Homeowners Property Tax Credit can cut property taxes for those with incomes under $60,000. Unlike the Homestead Credit, eligible homeowners must apply for this credit yearly.

Maryland Historical Trust provides information on tax credit for historic properties. These credits may be on Maryland income taxes or local property taxes.

Blind persons (and their surviving spouses) and disabled veterans are among those who can apply for special property tax exemptions.

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