Let’s Talk About Maryland’s Homestead Tax Credit

Do you qualify for the Maryland’s Homestead Tax Credit? Have you filed your application? Are you getting that credit? 

The Maryland Homestead Tax credit limits annual tax increase on your principal residence to no more than 10% a year. With property values increasing over the past few years it's a great time to check and apply!

As values rise, so will your taxable assessment. As a homeowner you are required to submit a one-time application to establish eligibility.  

You must:

1) Live in the property as your principal residence;

2) Have been in the property as your principal residence for at least six months of the year, including July 1 of the year for which the credit is applicable, unless the owner was temporarily unable to do so by reason of illness or need of special care.  

3) There was no change in the zoning classification requested by the homeowner resulting in an increase value of the property. Or no substantial change occured in the use of the property.

4) Submit an application to the Maryland State Department of Assessment and Taxation.

This credit was established to help homeowners deal with large assessment increases on their principal residence. The Homestead Credit does not limit the market value of the property; instead, it is actually a credit calculated on any assessment increase exceeding 10% (or the lower cap enacted by the local governments) from one year to the next. The credit is calculated based on the 10% limit for purposes of the State property tax, and 10% or less (as determined by local governments) for purposes of local taxation. In other words, the homeowner pays no property tax on the market value increase which is above the limit.

Do you think you already completed an application? To find out if you have already filed an application you can look  up your property in our Real Property database (https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx) select your county then enter your address. At the bottom of your account information is "Homestead Application Status"

There are a few exceptions so check this site for more details: https://dat.maryland.gov/homestead

If you need to apply start here: https://sdathtc.dat.maryland.gov/

We are here to assist! If you have any questions reach out and we can help.