How Much Are Property Taxes in Maryland?

Property taxes in Maryland are a financial consideration for homeowners, contributing to the overall cost of owning a home. These taxes are levied by both the state and local jurisdictions, including counties and municipalities. The revenue generated funds public services such as education, public safety, and infrastructure. The amount a homeowner pays varies depending on the assessed value of their property and its location within the state.

Understanding Property Tax Assessment

The Maryland Department of Assessments and Taxation (SDAT) determines the value of properties for tax purposes across the state. SDAT conducts these property assessments to provide an objective analysis of property values.

Properties in Maryland are assessed on a triennial cycle, meaning each property is re-evaluated every three years. When determining a property’s market value, SDAT considers factors such as recent sales of comparable properties, the property’s physical characteristics (size, age, condition, and amenities), and its location.

Increases in a property’s assessed value are phased in over the three-year assessment cycle. Any increase in the full cash value of a property is applied in equal increments over the next three years.

Homeowners who disagree with their property assessment can appeal the valuation. The appeal process begins with an informal review with an SDAT assessor. If a resolution is not reached, a formal appeal can be filed with the local Property Tax Assessment Appeal Board. Information on the appeal process is available on the SDAT website.

Maryland Property Tax Rates and Calculation

Property tax bills in Maryland comprise two components: a state property tax and a local property tax. The state property tax rate is set annually and applied to the assessed value of all real property. This state levy contributes to the payment of principal and interest on state general obligation bonds.

Local property tax rates are established by individual counties and, in some cases, by municipalities within those counties. These rates can vary depending on the jurisdiction’s budgetary needs for local services. Local governments depend on property tax revenue to fund public schools, police and fire departments, and other community services.

The gross property tax amount is calculated by applying these rates to the property’s assessed value. For example, if a property has an assessed value of $300,000, and the state tax rate is $0.112 per $100 of assessed value, the state portion would be $336. If the local county rate is $0.983 per $100, the county portion would be $2,949. The total gross tax would be $3,285.

Current state property tax rates are available on the SDAT website. Local county and municipal tax rates can be found on their respective government websites. These rates are adopted by July 1st annually and are applied to the assessments to generate the real property tax bill.

Property Tax Credits and Exemptions

Maryland offers various property tax credits and exemptions designed to reduce the tax burden for eligible homeowners. One program is the Homestead Tax Credit, which limits the annual increase in a homeowner’s taxable assessment. This credit provides a credit on any assessment increase exceeding 10 percent, or a lower cap set by local governments.

Another program is the Homeowners’ Tax Credit, an income-based program that can reduce a homeowner’s property tax bill. Eligibility for this credit depends on household income and the amount of property taxes paid. Applications for this credit are typically due by May 1st for consideration with the initial July tax bill.

Exemptions are also available for specific groups of property owners. For instance, certain senior citizens and 100 percent disabled veterans may qualify for property tax exemptions. These exemptions can reduce or eliminate the taxable assessment of their primary residence.

To apply for these credits and exemptions, homeowners need to submit specific application forms, often available online through the SDAT website or local county tax offices. Review eligibility criteria and submit applications by the specified deadlines.

Accessing and Paying Your Property Tax Bill

Property tax bills are typically issued annually in July or August by local governments, including Maryland’s counties and incorporated municipalities. These bills cover the upcoming fiscal year, which begins on July 1st. Homeowners can often access their specific property tax bill online through their respective county or city government’s tax portal.

To use online lookup tools, homeowners usually need to provide their property address or an account number. These online platforms allow for convenient viewing of current and past tax bills, as well as payment history. Many jurisdictions also mail physical tax bills to property owners.

Common payment methods include online payments, often via e-check or credit/debit card, though credit card payments may incur a processing fee. Mail-in payments using checks or money orders are also widely accepted. Additionally, many county tax offices offer in-person payment options.

Property tax payments in Maryland are typically due in annual or semi-annual installments. For properties designated as a “principal residence,” semi-annual installments are commonly offered, with the first installment due by September 30th and the second installment due by December 31st of the tax year. Failure to pay property taxes by the due dates can result in the assessment of interest and penalties on the unpaid balance.