Maryland Property Tax

If you own a business in Maryland, you must pay a tax on your business personal property. This includes furniture, fixtures, office and industrial equipment, machinery, tools, supplies and inventory. The county taxes this property based on the value that the state Department of Assessments and Taxation assigns it. You can file an annual report by April 15 to determine the value of your business property and the resulting amount of taxes you must pay. The tax applies to all businesses — even those that aren’t located in the city of Baltimore or in a designated commercial area. The revenue from this tax is used to provide services to the community, such as street and sidewalk maintenance, tree care, trash removal and sanitation, and police protection. 

Maryland Property Tax Exemption

In Maryland, property taxes are based on the assessed value of your property. The State Department of Assessments and Taxation reassesses your property every three years. If your assessed value increases, your property taxes will increase as well. To avoid a large increase, you can file for an exemption.

There are several exemptions available to homeowners in Maryland. You can apply for them online or at a county office. To qualify, you must provide proof of income and residency. You must also file a one-time application for homestead credit.

The Homestead Credit program limits the yearly taxable assessment increase on owner-occupied residential dwellings to a rate set annually by the county council between 1% and 10%. This program is administered by the State Department of Assessments and Taxation (SDAT).

The County has an appeal process for disputing property tax assessments. You can request a review by filing a petition with the PTAAB. The petition must include the reasons why you disagree with the assessment and any supporting documentation. If you are not satisfied with the PTAAB’s decision, you can appeal to Maryland’s Circuit Court.

Maryland Homeowners’ Tax Credits

In Maryland, there are actually two tax credit programs related to homeowners:

1. Homeowners’ Property Tax Credit Program:

• This program, often called the “Circuit Breaker,” provides tax relief to homeowners if their property taxes exceed a certain percentage of their gross household income.
• Eligibility: Based on gross household income and property taxes paid.
  • How it works: The credit amount is calculated based on a sliding scale, where:0% of the first $8,000 of income
  • 4% of the next $4,000
  • 6.5% of the next $4,000
  • 9% of all income above $16,000
• Application required: You must file a new application every year by October 1st.
• More information: https://dat.maryland.gov/Pages/Tax-Credit-Programs.aspx

2. Homestead Property Tax Credit Program:

• This program caps the annual increase in the taxable assessment of your primary residence to 10% or less, effectively limiting the property tax increase year-on-year.
• Eligibility: Owns and occupies a primary residence in Maryland.
• No action required: Automatically applied by your local government.
• More information: https://dat.maryland.gov/realproperty/Pages/Maryland-Homestead-Tax-Credit.aspx

You can find helpful tools and resources on the Maryland Department of Assessments and Taxation website.