MD Property Tax Explained (2026 Guide)

Maryland's effective property tax rates are moderate, commonly 0.9% to 1.1% of market value, but they vary sharply by county because the state sets the assessment rules while counties and municipalities set the rates. Property is assessed at 100% of market value and revalued on a three-year cycle. Maryland's flagship relief is the Homeowners' Property Tax Credit (a circuit breaker) plus a homestead exemption and a senior tax credit. This guide explains the calculation and the credits worth claiming; the calculator below estimates your bill.

How MD Property Tax Is Calculated

The Department of Assessments and Taxation values property at 100% of market value, with a triennial (three-year) revaluation cycle and an annual interim update in between. Your net assessed value is multiplied by the combined county, municipal, and special-district rate (dollars per $100 of value). Because the state caps neither the rate nor the bill directly, the variation comes almost entirely from local rate-setting: a homeowner in a low-rate county pays far less than one in a high-rate county for the same home.

The Homestead Tax Credit

Maryland's Homestead Tax Credit limits the annual increase in the assessed value of an owner-occupied primary residence to a set percentage (by law up to 10%, with many jurisdictions using the 10% cap) for tax purposes. If your market value jumps in a revaluation, the credit phases in the increase slowly, protecting long-term owners from a sudden bill spike. You must apply once with the state; it stays active while you occupy the home as your principal residence.

The Homeowners' Property Tax Credit (Circuit Breaker)

The Homeowners' Property Tax Credit is Maryland's circuit breaker for lower-income owners: it reduces the state and local property tax bill so that it does not exceed a percentage of household income. It is available to owner-occupants with income generally under $60,000 (the threshold and the percentage-of-income cap are set by law and adjusted periodically); the lower your income, the larger the credit. Apply annually to the state Department of Assessments and Taxation.

Senior and Other Credits

Maryland also offers a senior tax credit tied to income for owners 65+, a disabled veterans' exemption, and a surviving spouse exemption. Counties may add their own supplements. Because these are income-tested and applied separately from the homestead credit, a senior with modest income can stack the homestead cap with the circuit-breaker and senior credits for substantial relief.

The 10% Assessment Cap

The Homestead Tax Credit's 10% cap on annual taxable-assessment growth is the closest thing Maryland has to a Maryland-style Prop 13 growth limit, but it applies only to owner-occupied homesteads and only to the assessment, not to the rate. It cushions revaluation shocks without freezing value permanently.

MD Property Tax by County (2026)

The figures below draw on our county datasets where available; rates differ by jurisdiction, so use your specific locality's rate in the calculator.

CountyEffective RateEst. tax on $400,000
Montgomery1.28%$5,120
Baltimore1.32%$5,280
Prince Georges1.35%$5,400

Estimates apply each county's effective rate to a $400,000 market value for comparison only; your actual bill depends on your own assessed value, exemptions, and local levies.

When and How MD Property Taxes Are Paid

Maryland bills are commonly sent in two installments (July and December) by the county collector, and interest runs on late payments; sustained delinquency can result in a tax sale of the property after the statutory notice period. The semi-annual schedule means a revaluation year's impact shows up in the July bill. Enrolling in the circuit-breaker and homestead credits does not change the due dates, only the amount owed.

How to Lower Your MD Property Tax Bill

To cut your Maryland bill: (1) apply for the Homestead Tax Credit (10% assessment cap) once, and keep it active after moving; (2) file the Homeowners' Property Tax Credit (circuit breaker) every year if income qualifies — it caps tax as a share of income; (3) claim the senior tax credit and any disabled-veteran exemption; (4) grieve the assessment if your triennial revaluation overshoots the market; (5) watch county and municipal rate votes, since local rates drive the bill. Stacking the homestead cap with the circuit-breaker is the most effective combination for lower-income owners.

How the MD System Works in Practice

In practice, a Maryland bill combines the county rate, any municipal rate, and a small state property tax component, all applied to the net assessed value after the homestead cap and any credits. The state's three-year revaluation means the assessed value can jump in a revaluation year even though the rate barely moves; the Homestead Tax Credit phases in that jump so the bill rises gradually rather than all at once. The Homeowners' Property Tax Credit is not shown as a line reduction — it is reconciled separately and reduces what you ultimately owe or refunds the overpayment. Because the rate is local, two neighbors in different counties (or a city versus its surrounding county) can have very different bills for identical homes. Read the assessment notice in the spring, because that is the only time to grieve before the July bill reflects the new value.

A MD Homebuyer's Property Tax Checklist

If you are buying in Maryland, get the current bill and the assessment notice, and ask whether the seller claimed the Homestead Tax Credit — you must reapply in your own name after moving in. Determine whether your income would qualify for the Homeowners' Property Tax Credit (circuit breaker), which can cap your effective burden. Compare the county and municipal rates if the home is inside a town, because the combination drives the bill. In a revaluation year, expect the assessed value to rise toward market; the homestead cap softens the hit but does not eliminate it. Finally, check for any special-district charges (fire, water, sewer) that may not be obvious from the listing price.

Reading and Appealing Your MD Assessment

To appeal in Maryland, begin when the triennial revaluation or the annual interim update notice arrives. (1) Review the valuation and compare it to recent sales of similar homes; Maryland values at 100% of market, so large gaps are easy to spot. (2) Request a review from your local assessment office; many discrepancies are resolved here without a formal hearing. (3) If unresolved, appeal to the Maryland Tax Court (an administrative court) with your evidence and a clear argument. (4) Separately, make sure your Homestead Tax Credit and Homeowners' Property Tax Credit applications are on file, because even a successful value appeal is blunted if those are missing. The revaluation year is the highest-value time to act, since that is when the assessed value resets.

Recent MD Property Tax Changes and Reform Watch

Maryland's recent focus has been on property-tax relief for seniors and lower-income owners, including discussions of expanding the Homestead Tax Credit and the circuit-breaker, and on tightening the triennial revaluation so values track the market more smoothly. Some counties have debated local tax-rate limits. Watch the annual General Assembly session, because credits and exemptions are set in state law and adjusted there — changes often arrive as part of the state budget.

Key MD Property Tax Terms

Homestead Tax Credit — caps annual assessment growth of a primary home (commonly 10%). Homeowners' Property Tax Credit — a circuit breaker capping tax as a share of income. Triennial revaluation — the state's three-year assessment cycle. Interim update — the annual adjustment between revaluations. Maryland Tax Court — the administrative court for assessment appeals.

More MD Worked Examples

Two $400,000 homes: Homeowner A at a 1.0% effective rate owes about $4,000. Homeowner B, a lower-income owner, claims the Homestead Tax Credit (capping assessment growth) and the Homeowners' Property Tax Credit (circuit breaker); the circuit breaker can cut the effective burden substantially, potentially to $2,500–$3,000 depending on income. The combination is why Maryland's headline rate overstates what many seniors actually pay. Run the circuit-breaker math before buying, because it scales with income.

Property Tax and Your Mortgage Escrow in MD

Maryland homeowners with a mortgage typically pay tax through escrow; the lender remits the July and December installments. A triennial revaluation can raise the assessed value (phased in by the Homestead Credit), which flows into a higher escrow and monthly payment the following year. If you claim the Homeowners' Property Tax Credit, it reduces what you ultimately owe but may not automatically lower the escrow, so reconcile it with the lender. Buyers should check the assessment notice timing — purchasing just before a revaluation year means a higher bill (and escrow) soon after moving in.

MD Property Tax FAQ

How often does Maryland revalue property? On a three-year revaluation cycle with an annual interim update between cycles; property is assessed at 100% of market value.

What is the Maryland Homestead Tax Credit? A credit that limits the annual increase in the taxable assessed value of an owner-occupied home to a set percentage (commonly 10%), cushioning revaluation shocks. Apply once with the state.

What is the Homeowners' Property Tax Credit? A circuit breaker for lower-income owner-occupants (generally under about $60,000 income) that caps property tax as a share of income. Apply annually to the state.

Is there a senior tax credit in Maryland? Yes. Maryland offers an income-tested senior tax credit for owners 65+, plus disabled-veteran and surviving-spouse exemptions.

How do I appeal my Maryland assessment? Request a review from your local assessment office, then appeal to the Maryland Tax Court if unresolved, using comparable sales as evidence.

Property Tax Calculator Maryland 2026

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Disclaimer: This calculator provides estimates only. Actual property tax bills may differ based on local assessments, special district taxes, and other factors. Consult your local tax assessor for official tax information.