Maryland property tax: how it works and the homestead credit

Who values your home and who sets the rate?

SDAT values all real property, and it must value each property once in every 3-year cycle (Tax-Property Article § 8-104(b)). A value increase is phased in, one-third a year, over the three years (§ 8-103). The taxable assessment is therefore often lower than the latest market value. Land and buildings are valued separately.

Rates are set by the elected body. Baltimore City or each county sets its rate for the next tax year before June 20 (§ 6-302). The State rate for 2026-27 is $0.112 per $100 everywhere, according to SDAT’s rate table.

Your bill is: taxable assessment ÷ 100 × combined rate, minus credits. In incorporated towns, a municipal rate is added; SDAT shows none for Baltimore City.

What are the 2026-27 rates in Baltimore and nearby?

Source: SDAT. Incorporated towns in other counties add their own rates, so look up your exact address.

Baltimore City is an independent city, so its rate combines what a county and a city charge elsewhere.

How does the homestead credit work?

The Homestead Property Tax Credit limits how much your taxable assessment can rise from one year to the next on the one home you use as your principal residence (SDAT; § 9-105). Every county and municipality must set its limit at 10% or less. For the State’s share of the tax, the limit is always 10% (110% of last year’s taxable assessment). A local limit may be set anywhere from 100% to 110% (§ 9-105(e)). For 2026-27, SDAT lists 4% for Baltimore City.

You must apply once. The statute says the application is due by May 1 before the first tax year in which you want the credit (§ 9-105(d)(6)). SDAT says it mails an application to new owners after the deed is recorded, and you can also file online at Maryland OneStop. Look up your property on SDAT’s Real Property search to see whether one is on file.

The credit is not granted for a tax year if the home was sold for consideration during the previous tax year (§ 9-105(d)(1)). You must live in the home by July 1 of the tax year, and you may claim it for only one home.

Example in Baltimore City. Last year’s taxable assessment was $250,000. SDAT’s phased-in assessment this year is $280,000. The city’s cap allows $260,000 (4% more), and the State’s allows $275,000 (10% more).

The assessments here are invented to show the formula.

What other credits exist?

Maryland also runs the Homeowners’ Property Tax Credit, which depends on income, and a renters’ credit (SDAT). Baltimore City’s Department of Finance lists its own city credits and an online application. Check those pages before you assume you do not qualify.

How do you appeal an assessment?

SDAT sends a notice when it changes your value, normally every three years. File your appeal within 45 days of the notice date, online or on the paper form. If you disagree with the supervisor’s decision, appeal to the Property Tax Assessment Appeals Board within 30 days of the final notice. A further appeal goes to the Maryland Tax Court. If you buy between January 1 and June 30, you have 60 days from the transfer to file, once the deed is recorded. In the two years between reassessments, you may petition for review by the first working day after January 1.

When is the bill due?

Property tax is due July 1 and can be paid without interest through September 30 (§ 10-102). Owner-occupants must be offered a semiannual schedule: the first installment is due by September 30, and the second may carry a service charge (§ 10-204.3). Lenders often collect the tax in an escrow account.

For the taxes due at the sale, see Maryland transfer tax and closing costs. City specifics are in the Baltimore guide.