Property taxes in Maryland are about average on a national scale, with the state ranking 25th in the country in 2009 according toThe Tax Foundation in terms of property taxes as a percentage of home value. Taxes are assessed and collected by counties, towns and special taxing districts. The Maryland State Department of Assessments and Taxation does not regulate or collect taxes, but provides a list of local tax rates. The homestead credit provides relief from increases in property tax assessments, and there are exemptions and credits for certain other qualified residents of Maryland.
Homestead tax credit
The homestead credit in Maryland provides tax relief in case of large increases in the assessment on your principal residence. Every county and municipality in Maryland is required not to increase assessments by more than 10 percent a year. Each local government enacts its own homestead cap, which can be less than 10 percent. If your assessment increases by more than 10 percent, or more than the local government cap, you receive a credit for the property taxes on the assessment in excess of that limit. Legislation enacted in Maryland in 2007 requires homeowners to submit a one-time application to establish their eligibility for the homestead credit.
Exemptions
Maryland homeowners who are blind can qualify for an exemption from property taxes on $15,000 of the assessment value of their dwelling and surrounding yard. Surviving spouses of blind persons are also eligible for this exemption. You should file the Application for Exemption for Blind Persons, or the Application for Exemption for Surviving Spouses of Blind Persons with your local tax assessment office.
Veterans with a 100% service-connected disability can receive complete exemption from property taxes on their dwelling and surrounding yard. Surviving spouses who have not remarried, and surviving spouses of military personnel killed in the line of duty are also eligible for this exemption. You should file the Application for Exemption for 100% Disabled Veterans, Application for Exemption for Surviving Spouses of Disabled Veterans, Application for Exemption for Surviving Spouses of Disabled Veterans Receiving DIC Benefits or Application for Exemption for Surviving Spouses of Active Military Personnel Who Died in the Line of Duty, as applicable, with your local tax assessment office.
If you need to make improvements in a building that are required due to the health or medical condition of a resident, you can qualify for an exemption from property taxes on the improvements. The exemption is for the cost of the improvements, up to a maximum of 10 percent of the total assessment of the property. You should file the Application for Assessment Exemption for an Improvement Required for the Health or Medical Condition of a Resident.
Property tax credits
There are property tax credit programs available in Maryland that provide tax relief based on the resident’s income. The Homeowner’s Property Tax Credit is a credit for the amount of property tax you pay on your principal residence that exceeds a tax limit based on your income according to a table. To qualify for this credit you must own or have a legal interest in the property, your total net worth, including your residence, must be less than $200,000, and your total household income cannot be more than $60,000. To claim the credit, file the Homeowner’s Property Tax Credit Application.
There are local tax credit programs that supplement the state homeowner’s property tax credit. Each local program has its own requirements. You do not need to submit a separate application for this local credit. When you submit the Homeowner’s Property Tax Credit Application, your eligibility for a local credit will be taken into consideration.
There is also a credit for renters who pay property taxes indirectly through their rent. This credit is similar to the homeowner’s property tax credit in that it is based on your income and the rent you pay. There are separate requirements and income tables for renters who are age 60 or older or disabled, and renters under age 60. You should file the Renter’s Tax Credit Application.
Sources:
Application for Assessment Exemption for an Improvement Required for the Health or Medical Condition of a Resident – Maryland Department of Assessments and Taxation
Application for Exemption for 100% Disabled Veterans – Maryland Department of Assessments and Taxation
Application for Exemption for Blind Persons – Maryland State Department of Assessments and Taxation
Application for Exemption for Surviving Spouses of Disabled Veterans – Maryland State Department of Assessments and Taxation
Application for Exemption for Surviving Spouses of Disabled Veterans Receiving DIC Benefits – Maryland State Department of Assessments and Taxation
Application for Exemption for Surviving Spouses of Active Military Personnel Who Died in the Line of Duty – Maryland State Department of Assessments and Taxation
Application for Exemption for Surviving Spouses of Blind Persons – Maryland State Department of Assessments and Taxation
Application for Homestead Tax Credit Eligibility – Maryland State Department of Assessments and Taxation
County and Municipal Homestead Credit Percentages – Maryland State Department of Assessments and Taxation
County Tax Rates – Maryland State Department of Assessments and Taxation
Homeowner’s Property Tax Credit Application – Maryland State Department of Assessments and Taxation
Maryland Homestead Tax Credit – Maryland State Department of Assessments and Taxation
Property Taxes on Owner-Occupied Housing by State, 2004 – 2009 – The Tax Foundation
Renter’s Tax Credit Application – Maryland State Department of Assessments and Taxation
SDAT Tax Credit Programs – Maryland State Department of Assessments and Taxation
Reference:
- The Facts on Maryland’s Tax Climate: www.taxfoundation.org/research/topic/34.html
- Spotlight on Maryland ‘” Comptroller of Maryland: www.marylandtaxes.com/
