Maryland Property Tax Guide 2025

Maryland's average effective property tax rate is about 1.07%, close to the national average. The state has a unique triennial assessment cycle and one of the most generous tax credit programs in the country — the Homestead Tax Credit automatically caps assessment increases at 10% per year.

How MD Property Taxes Work

Maryland property taxes are levied at three levels: state, county, and municipal. The state rate is $0.112 per $100 of assessed value — one of few states with a statewide property tax. Counties set their own rates on top, and incorporated cities/towns may add another layer.

Properties are assessed at 100% of market value by the State Department of Assessments and Taxation (SDAT). Maryland uses a triennial assessment cycle — each property is reassessed every three years, with any increase phased in equally over the three-year period.

Homestead Tax Credit

Maryland's Homestead Tax Credit is one of the best homeowner protections in the country:

• Automatic cap: Limits the taxable assessment increase to 10% per year (or less — many counties set lower caps)
• Must apply once: File the Homestead Tax Credit application with SDAT (one-time, stays active as long as you live there)
• Primary residence only: Investment properties and second homes don't qualify

Several counties have set their cap below 10%: Baltimore County (4%), Howard County (5%), Anne Arundel County (2%), and others. This can save homeowners thousands during periods of rapid appreciation.

Average Tax Rates by County

Rates shown are county only; state rate ($0.112) and any municipal rate are additional.

Homeowners' Tax Credit (Circuit Breaker)

Separate from the Homestead Credit, the Homeowners' Tax Credit is an income-based program:

• Income limit: Combined gross household income under ~$60,000
• Credit amount: Varies — can reduce your tax bill by hundreds to thousands
• Annual application: Must apply by September 1 each year to SDAT
• Age/disability not required: Available to all qualifying homeowners regardless of age

Exemptions

• Senior Tax Credit: Some counties offer additional credits for homeowners 65+ (varies by jurisdiction)
• Disabled Veterans: 100% service-connected disability = full property tax exemption
• Blind Homeowners: Up to $15,000 reduction in assessed value
• Surviving Spouses of Military: Full exemption if death was service-connected
• Agricultural Use: Farmland assessed at agricultural value (significantly lower than market value)

How to Appeal Your Assessment

Maryland has a structured three-level appeal process:

1. Supervisor's Level: Contact your local SDAT assessment office within 45 days of your notice. Informal — you can call or meet in person.
2. Property Tax Assessment Appeal Board: If unsatisfied, appeal to the county board within 30 days. More formal — bring comparable sales data.
3. Maryland Tax Court: Final administrative appeal. Must file within 30 days of the board's decision.

Pro tip: Since Maryland phases in increases over 3 years, a successful appeal in year 1 has compounding benefits for the remaining two years of the cycle.

Key Dates

• January 1: Assessment date (value as of this date)
• December: Assessment notices mailed for properties in that year's cycle
• July 1: Tax year begins
• September 30: First semi-annual payment due
• December 31: Second semi-annual payment due
• September 1: Deadline for Homeowners' Tax Credit application