Maryland Homestead Property Tax Application
Why Homeowners Should Apply
If you own a home in Maryland, you’ve probably noticed that property taxes don’t seem to take a break. And if you’re like most homeowners, you’re looking for every legal way to keep more of your hard-earned money in your pocket. One often-overlooked tool for Maryland homeowners is the Homestead Property Tax Credit—a program designed to limit how much your property taxes can increase each year, even as your home's value rises.
What Is the Maryland Homestead Property Tax Credit?
The Homestead Tax Credit protects homeowners from significant property tax increases by capping the annual taxable assessment growth of their primary residence. While your home's market value may increase significantly from one year to the next, this credit ensures that your tax bill doesn’t skyrocket in response.
By law, the state caps the increase in a home's taxable assessment at 10% per year, but many Maryland counties and municipalities have even lower caps, some as low as 0-5%. This means that even if your home's assessed value jumps by 20% in a single year, only a fraction of that increase can be taxed.
Who Is Eligible?
Not every property qualifies for the Homestead Tax Credit. Here’s what you need to know:
- Primary Residence Only: The property must be your principal residence. Investment properties, vacation homes, and rental properties do not qualify.
- Occupied by the Owner: You must live in the home for at least six months each year, including July 1 of the application year.
- Application Required: Homeowners must apply and be approved by the Maryland Department of Assessments and Taxation (SDAT). Unlike some exemptions that are applied automatically, you won’t receive this credit unless you submit an application.
- One-Time Application: Once approved, you don’t need to reapply unless there is a change in ownership or use of the home.
How to Apply
If you haven’t applied for the Homestead Tax Credit, you’re likely leaving money on the table. Fortunately, the application process is simple:
1. Verify Your Eligibility: Confirm that your home is your primary residence and meets the other requirements.
2. Complete the Application: The application can be submitted online through the Maryland SDAT website or via a paper form. You’ll need your property account number, which can be found on your tax bill or assessment notice.
3. Submit Before the Deadline: While there’s no strict annual deadline, it’s best to apply as soon as possible to ensure you receive the benefit on your next tax bill.
Additional Property Tax Exemptions for Maryland Homeowners
In addition to the Homestead Tax Credit, some homeowners may qualify for other property tax relief programs, including:
- Homeowners’ Property Tax Credit: Provides additional relief for households with a combined income below a certain threshold (typically under $60,000 per year). This credit is income-based and must be renewed annually.
- Senior & Veterans Exemptions: Some Maryland jurisdictions offer property tax reductions for seniors, disabled homeowners, and military veterans. Check with your county or city government to see if you qualify.
The Bottom Line
If you’re a homeowner in Maryland and haven’t applied for the Homestead Property Tax Credit, you could be paying more in property taxes than necessary. This credit isn’t automatic—you must apply to receive it. Given the potential savings, taking a few minutes to submit your application could be one of the easiest financial wins you’ll secure this year.
For more information and to apply, visit the Maryland Department of Assessments and Taxation (SDAT) website or contact your local tax assessment office.