Question 1

What is the homestead exemption in Maryland?

Accepted Answer

Maryland has no flat homestead exemption; its main relief for an owner-occupied home is the Homestead Property Tax Credit, which limits how much the taxable assessment of a principal residence can rise each year (the credit applies to the increase above the cap). The state cap is 10%, and counties and municipalities may set lower caps. The dwelling must be the owner's principal residence, the owner must live there at least six months of the year including July 1 (unless prevented by illness or need for special care), and a credit is allowed on only one property.

Question 2

How do you apply for a homestead exemption in Maryland?

Accepted Answer

The Homestead Tax Credit application is filed once during the owner's time in the property, online through Maryland OneStop / the SDAT homestead site or on a paper form by mail or fax. Owners can check SDAT's Real Property search: a status of "Approved" or "Application Received" means no further action is needed. New purchasers are mailed an application after the deed is recorded and may also receive one at settlement.

Question 3

When is the deadline to apply for a homestead exemption in Maryland?

Accepted Answer

The Homestead Tax Credit page does not list a filing deadline. For the separate income-based Homeowners' Property Tax Credit, the deadline is October 1 of each year, and SDAT recommends applying by April 15 so the credit can be deducted from the July tax bill.

Question 4

Do disabled veterans pay property tax in Maryland?

Accepted Answer

A veteran whose disability the VA has determined is 100% service-connected, permanently and totally disabling is exempt on the dwelling that is the veteran's principal residence and that the veteran owns; an Attorney General's opinion allows approval at a lower rating if the VA finds the veteran permanently unemployable. A qualifying surviving spouse may keep the exemption and, on a later-acquired dwelling, receive an exemption equal to the one on the preceding dwelling. Maryland also provides a complete exemption for disabled active-duty service members, with yearly certification. Apply to the local SDAT assessment office for the county where the property is located.

Question 5

Is there a property tax exemption for people with disabilities in Maryland?

Accepted Answer

A blind owner who owns and lives in the dwelling may receive an exemption of $40,000 of the property's assessed value (prorated for any part of the taxable year remaining), with a physician's certification. An exemption for health or medical improvements to a home may not exceed 10% of the property's total market value.

Question 6

How much can a home's assessed value go up each year in Maryland?

Accepted Answer

Every county and municipality must limit taxable assessment increases on an owner-occupied principal residence to 10% or less each year through the Homestead Property Tax Credit; many local governments set lower caps (SDAT publishes a list of local caps). Property is normally reassessed every three years.

Question 7

What property tax relief programs does Maryland offer?

Accepted Answer

Homeowners' Property Tax Credit ("circuit breaker"): for owners whose combined gross household income does not exceed $60,000 and whose net worth (excluding the home and qualified retirement savings) is less than $200,000, the credit pays property taxes above a limit based on income; only taxes on the first $300,000 of assessed value count. The home must be the principal residence, lived in at least six months including July 1. Apply every year (online through OneStop or by mail to SDAT) by October 1.

Question 8

How do you appeal a property tax assessment in Maryland?

Accepted Answer

After receiving a Notice of Assessment (normally every three years), file an appeal online or in writing within 45 days of the notice date. Level 1 is an informal Supervisor's hearing; level 2 is the Property Tax Assessment Appeals Board (file within 30 days of the final notice); level 3 is the Maryland Tax Court (within 30 days of the board's order). In non-reassessment years, an owner may file a petition for review by the first working day following January 1.

Question 9

When are property taxes due in Maryland?

Accepted Answer

Property taxes are due July 1. Owner-occupied principal residences may pay semiannually: the first installment may be paid without interest through September 30, and the second installment is due December 1 and may be paid without interest through December 31 (a service charge of up to 1.5% of the second installment may apply unless both installments are paid by September 30).

Homestead exemption	Maryland has no flat homestead exemption; its main relief for an owner-occupied home is the Homestead Property Tax Credit, which limits how much the taxable assessment of a principal residence can rise each year (the credit applies to the increase above the cap). The state cap is 10%, and counties and municipalities may set lower caps. The dwelling must be the owner's principal residence, the owner must live there at least six months of the year including July 1 (unless prevented by illness or need for special care), and a credit is allowed on only one property. Source: Maryland SDAT, Homestead Property Tax Credit
How to apply	The Homestead Tax Credit application is filed once during the owner's time in the property, online through Maryland OneStop / the SDAT homestead site or on a paper form by mail or fax. Owners can check SDAT's Real Property search: a status of "Approved" or "Application Received" means no further action is needed. New purchasers are mailed an application after the deed is recorded and may also receive one at settlement. Source: Maryland SDAT, Homestead Property Tax Credit
Application deadline	The Homestead Tax Credit page does not list a filing deadline. For the separate income-based Homeowners' Property Tax Credit, the deadline is October 1 of each year, and SDAT recommends applying by April 15 so the credit can be deducted from the July tax bill. Source: Maryland SDAT, Homeowners' Property Tax Credit Program
Limits on assessment increases	Every county and municipality must limit taxable assessment increases on an owner-occupied principal residence to 10% or less each year through the Homestead Property Tax Credit; many local governments set lower caps (SDAT publishes a list of local caps). Property is normally reassessed every three years. Reassessment cycle: https://dat.maryland.gov/realproperty/Pages/Assessment-Appeal-Process.aspx Source: Maryland SDAT, Homestead Property Tax Credit; Assessment Appeal Process

Veteran exemptions	A veteran whose disability the VA has determined is 100% service-connected, permanently and totally disabling is exempt on the dwelling that is the veteran's principal residence and that the veteran owns; an Attorney General's opinion allows approval at a lower rating if the VA finds the veteran permanently unemployable. A qualifying surviving spouse may keep the exemption and, on a later-acquired dwelling, receive an exemption equal to the one on the preceding dwelling. Maryland also provides a complete exemption for disabled active-duty service members, with yearly certification. Apply to the local SDAT assessment office for the county where the property is located. Source: Maryland SDAT, Real Property Exemptions; Md. Code, Tax-Property § 7-208
Disability exemptions	A blind owner who owns and lives in the dwelling may receive an exemption of $40,000 of the property's assessed value (prorated for any part of the taxable year remaining), with a physician's certification. An exemption for health or medical improvements to a home may not exceed 10% of the property's total market value. Source: Maryland SDAT, Real Property Exemptions
Other relief (credits, deferrals, circuit breakers)	Homeowners' Property Tax Credit ("circuit breaker"): for owners whose combined gross household income does not exceed $60,000 and whose net worth (excluding the home and qualified retirement savings) is less than $200,000, the credit pays property taxes above a limit based on income; only taxes on the first $300,000 of assessed value count. The home must be the principal residence, lived in at least six months including July 1. Apply every year (online through OneStop or by mail to SDAT) by October 1. Source: Maryland SDAT, Homeowners' Property Tax Credit Program

Maryland Property Tax Exemptions: Homestead, Senior and Veteran Relief

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