Maryland Property Taxes
Overview of Maryland Property Taxes
Maryland property taxes form a big portion of the local governments' budget. Every homeowner in the state is subjected to property taxes. The state collects $62 billion in revenue every year, $9 billion from property taxes. This is equivalent to 15.2% of total revenue. In Maryland, property values are relatively high, and homeowners subsequently pay more in property taxes than in other states. The average property tax bill in Maryland ranges between $1,403 and $5,389. Subsequently, Maryland has the 24th highest property tax rate in the country.
As is the case with most states, Maryland property taxes are primarily a local revenue. However, the state government is responsible for property assessment. Properties are assessed every three years to determine their fair market value, which is the price an unobligated buyer would pay for the property. The assessed value increases with the property value, although the state caps increases at 10%. However, local authorities are at liberty to use lower limits.
Every homeowner in Maryland is notified of any changes in their property's assessed value. Should you feel your home has been wrongly assessed, you can appeal your property taxes within 45 days of being notified.
The state of Maryland allows local authorities to set property tax rates depending on their required budget. The rates can, therefore, fluctuate from year to year. In the event of an increase in Maryland property tax rates, the governing body is obligated to advertise the additions and conduct a public hearing.
The average home value in the state is $343,936, and homeowners pay 1.03% of their home value every year in Maryland property taxes or $10.27 for every $1,000 in home value. However, Maryland property tax rates do vary across various jurisdictions in the state. Homeowners in Baltimore City, which is independent of any county, pay some of the state's highest property taxes at a rate of 1.70% of home value.
If you are planning to buy a home in Maryland and want to understand how much your property tax bill could potentially cost, check out our Maryland Property Tax Tool to see what your bill would be.
Maryland Property Tax Due Dates
The State of Maryland's Department of Assessments and Taxation (SDAT) is tasked with administering and enforcing property assessment and tax laws in the state. Maryland property tax bills are issued in July and August every year. Tax bills are issued for the upcoming financial year and are effective as of July 1st. Homeowners are advised to contact their local jurisdiction's Treasurer or Finance offices for more information regarding Maryland's property taxes billing and collection.
But when are property taxes due in Maryland? Unless paying semiannually, homeowners are required to pay their property taxes by September 30th. If you own a residential property that you also occupy, the state allows you to pay Maryland property taxes in two equal installments. Your tax bill should indicate "Principal Residence" if you qualify to pay semiannually. The first payment is due by September 30th, while the second should be paid by December 31st. Property tax bills become delinquent on January 1st.
The state offers no discounts to homeowners who pay early. However, failure to adhere to Maryland's property tax due dates attracts interest and penalties at a rate of 1.67% of the unpaid bill per month until the bill is cleared. Maryland State law allows local jurisdictions to recover the delinquent property taxes through a tax sale of the property in question. Tax sales take place on the second Monday in June of the following calendar year. Homeowners receive tax sale notices by April. Note that homeowners whose property has been put up for a tax sale may be subjected to an extra advertisement and legal fees.
TaxProper's main search can help you determine if you have been overpaying your Maryland property taxes.
Maryland Property Tax Exemptions
Besides the option to appeal property taxes if you disagree with your home's assessed value, the State of Maryland offers several exemptions to eligible homeowners. They include senior and homestead exemptions. Exemptions can reduce the amount of Maryland property taxes. However, they don't apply to levies and special taxes. Additionally, eligible homeowners still have to abide by Maryland's property tax due dates.
Maryland Homestead Exemption
The homestead exemption or Homestead Tax Credit provides tax relief on homeowners by capping the increase in their home's taxable assessment. The State of Maryland requires municipalities and local authorities to limit the increase to 10% or lower. Technically, the homestead tax relief has no bearing on your home's market value increase as determined by the Department of Assessments and Taxation. However, if you own a home that you use as a principal residence, you are exempt from Maryland property taxes on the property's market value increase above the 10% limit. You can check your homestead eligibility on Maryland's real property database.
Maryland Senior Citizens Exemption
Maryland's senior exemption is also referred to as the Senior Tax Credit. It provides a tax credit to the senior resident if their Maryland property tax bill exceeds a certain percentage of their gross income. To qualify, homeowners have to be 65 years or older and use the property in question as to their principal residence at least six months a year. Additionally, their annual gross household income has to be $60,000 or below. Application forms can be downloaded from the state of Maryland's website.
Other Maryland property tax exemptions include the Disabled Veterans and Surviving Spouses exemptions. Army veterans with a permanent disability resulting from their service may receive a complete exemption from property taxes on their dwelling house. Surviving spouses of veterans killed in the line of duty also qualifies for this exemption. Contact information and local offices to apply for this exemption can be found on the State Department of Assessments and Taxation website.
How to Appeal Your Property Taxes in Maryland
The Department of Assessment and Taxation assesses residents of Maryland. Homeowners receive a notice of assessment every three years reflecting their property's old value and the new one. The new value is the amount the property would currently be sold for in the market. Homeowners who feel the department's valuation of their property is wrong can appeal to lower their Maryland property taxes. You can appeal after receipt of the assessment notice or upon purchase of a property between January 1st and June 30th. Appeals can be filed at the Supervisor's level, the Property Tax Assessment Appeals Board, or the Maryland Tax Court.
Appeal application forms can be obtained online on the Maryland Department of Assessment and Taxation's website. You are required to file within 45 days of receiving the assessment notice.
The process of filing an assessment appeal varies across Maryland though it generally follows the same steps from county to county:
- Obtain your assessment
- Determine if you are overassessed
- Complete forms needed to appeal
- File property tax appeal
- Prepare for hearing
- Attend hearing
- Appeal the decision
How to Appeal Your Property Taxes in Montgomery County
For a more detailed breakdown of how to appeal your property taxes in Maryland, we will look at the appeal process in Montgomery County, the largest jurisdiction in the State.
Obtain your assessment
Each property within Montgomery County is assessed every three years by the State Department of Assessments and Taxation (SDAT). Montgomery residents can obtain their assessment details on SDAT's website.
Determine if you are over-assessed
An assessment by the State Department of Assessments and Taxation determines your home's market value, which is the amount a buyer would pay for the property. To appeal, you have to determine if your home's value has been over-assessed. You can use TaxProper's search tool to find properties with a similar profile to yours and compare the values.
Complete forms needed to appeal
Homeowners in Montgomery County can obtain their property assessment appeal forms on SDAT's website.
File property tax appeal
Residents of Montgomery County can dispute their property's assessed value with the State Department of Assessments and Taxation. More details regarding the appeal process can be found on the back of the Assessment Notice or SDAT's website. It is noteworthy that the appeal process does not relieve you of the obligation to pay Maryland property taxes.
Prepare for hearing
Preparing for an appeal hearing includes gathering evidence supporting your case to have your home's assessed value lowered. Evidence can consist of previous sales of similar property, images, and relevant data points like size, the number of bedrooms, and square footage.
After filling the necessary appeal forms, homeowners have three appeal options: personal hearing, phone hearing, and written appeal. If you file a written appeal, you don't need to attend a private hearing or schedule a phone hearing. The State Department of Assessments and Taxation typically prioritizes written appeals.
Appeal the decision
The first level of appeal is the Supervisor's Level, where a homeowner can learn more information on how their property's appraisal was made. If dissatisfied with the decision, you can file with the Property Tax Assessment Appeals Board within 30 days of receiving a notice from the Supervisor Level's hearing.
You can further appeal the Board's decision at the Maryland Tax Court (MTC) within 30 days of the PTAAB order.
Property Tax Information for Maryland Counties
The table below provides county-level information about how property taxes work in each Maryland county.
Want to learn more? Click the county links to learn more about a specific Maryland county.
|County||Average Home Value||Average Tax Bill||Bill per $1,000|
|Anne Arundel County||$401,679||$3,179||$7.90|
|Prince George's County||$273,922||$3,734||$13.60|
|Queen Anne's County||$418,035||$3,307||$7.90|
|St. Mary's County||$325,310||$2,785||$8.60|