Property Taxes in Maryland

Effective Rate

Maryland's average effective property tax rate for 2026 sits right around the national average, generally cited in the ~0.92%–1.00% range depending on the source/methodology (Tax Foundation puts owner-occupied effective rate at 0.92%; other aggregators cite 0.95%–1.00%), versus the ~0.99% national average cited in the prompt — so Maryland is essentially at parity with the U.S. as a whole, not a high-tax outlier despite its high home values. What makes Maryland notable is the huge intra-state spread: effective rates range from about 0.56%–0.66% in Talbot County (Eastern Shore) up to roughly 1.37%–1.48% in Baltimore City, more than double the low end. Because Maryland home values are well above the national median (median home value ~$350,738), a near-average rate still produces an above-average dollar tax bill. The state's own share of that bill is small and unchanged for years — the Board of Public Works has held the state property tax rate at 11.2 cents per $100 of assessed value ($0.112/$100) for FY2026, the same level since 2007; the vast majority of what homeowners pay is the county/municipal rate layered on top.

Example: The median Maryland homeowner pays about $3,328 per year in property taxes (on a median home value of roughly $350,738), according to current 2025-2026 county-by-county data. This masks wide variation: annual bills range from around $1,603 in Somerset County at the low end to about $6,814 in Howard County at the high end, reflecting both differing local tax rates and differing home values across Maryland's 24 taxing jurisdictions (23 counties plus Baltimore City).

Exemptions

Homestead Property Tax Credit

Amount: Caps taxable assessment increases at 10% per year statewide (state cap); many counties/municipalities set lower local caps — e.g., Baltimore City 4%, Prince George's County 3%, Anne Arundel County 2%, Montgomery County 10%

Applies automatically to the state share once you file a one-time application with SDAT, but it limits growth in *taxable* assessed value for your principal residence only — it does not cap the underlying market value assessment, and it does not apply to newly purchased homes in their first year or to non-owner-occupied property.

Homeowners' Property Tax Credit Program

Amount: Tiered credit against the first $300,000 of assessed value; combined gross household income must be under $60,000 and net worth (excluding home equity and qualified retirement accounts) under $200,000. Formula: 0% of first $8,000 of income, 4% of next $4,000, 6.5% of next $4,000, 9% of income above $16,000 counts toward the expected tax payment — any actual tax owed above that calculated amount is credited. Example: a household earning $16,000/year has an expected tax payment of $420; if their actual bill is $990, they receive a $570 credit.

Income-based, not automatic — requires an annual application to SDAT (2026 deadline October 1, though applying by April 15 gets the credit applied directly to the tax bill rather than as a refund).

Age 77+ Supplemental Senior Property Tax Credit

Amount: New for tax year 2026: worth 25%-100% of the state income tax liability for eligible homeowners age 77 and older, layered on top of (but does not stack additively with) the standard sliding-scale Homeowners' Property Tax Credit

Newly enacted state-level senior benefit; check with individual counties, as several (e.g., Montgomery County's Supplemental HOTC) also run their own local senior/disability property tax credit add-ons with separate eligibility rules and dollar caps.

Maryland property tax is genuinely a two-layer system — a nearly flat, tiny state rate (11.2 cents per $100, unchanged since 2007) plus a much larger, highly variable county/city rate — so always ask "which county" before quoting a single statewide number; a Talbot County and a Baltimore City homeowner with identical home values can see tax bills differ by more than 2x. Also note 2026 statewide reassessments (Group 2 properties) showed values up ~12.7% year-over-year, but the Homestead Credit caps mean actual tax bills for existing owner-occupants rise much slower than assessed value, even as new buyers and non-homestead properties feel the full increase.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources

Down Payment Assistance in Maryland Transfer Tax & Closing Costs in Maryland Buyer-Agent Agreements in Maryland Seller Disclosure Laws in Maryland Find Agents in Maryland Home Affordability Calculator