The Homestead Exemption in Maryland
Who qualifies for the Maryland homestead property tax exemption, how much it saves, and how and when to apply.
Short 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). Maryland SDAT, Homestead Property Tax Credit
| 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. |
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| 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. |
| 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. |
| 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 |
More Maryland property tax & homestead exemptions
- Senior, Veteran and Disability Property Tax Relief in Maryland
- Appealing Your Property Tax Assessment in Maryland
- All Maryland property tax & homestead exemptions rules
FAQ
What is the homestead exemption in Maryland?
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.
How do you apply for a homestead exemption in Maryland?
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.
When is the deadline to apply for a homestead exemption in Maryland?
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.
How much can a home's assessed value go up each year in Maryland?
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.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.