The Important Maryland Tax Credit You Might Be Missing Out On

State starts campaign to raise awareness about the Maryland Homestead Tax Credit.

Beginning on Feb. 1, 2019 the State of Maryland will be making it easier for homeowners to apply for the homestead tax credit. This credit reduces the tax on your primary residence by capping the new assessment percentage every two years. The state cap is 10 percent, but local governments can set their own caps. For instance, Howard County has a cap of 5 percent. The State of Maryland will be identifying properties that are eligible for the credit and sending an application with your assessment notice. You can find your county’s tax cap here.

Here’s How it works

Assessment    Tax without
cap
Tax with
cap
Old Assessment $100,000    
First Year Assessment $120,000 20% 10%
Tax rate of $1.04 per $1000   $208 $104

Is my property eligible?

  • Property must be a primary residence, and you must live in it 6 months out of the year.
  • A married couple can have only one primary residence.
  • Primary residence address must match up with Maryland income tax, voter registration and dmv records.

How do I apply?

First you need to check if you already have an application filed. You can do this by going to the sdat website and entering your county and address.

Once you have verified that an application hasn’t been filed, you can do one of two things:

You can wait for your assessment statement to come in the mail, fill out the application and return it.

-or-

You can apply on the Maryland Assessment website here. You will need to get an access number to file the application online. To get this number, send your name, address and county to this email: sdat.homestead@maryland.gov.. You will get a return email with your account number and an access code.

To apply by mail or fax, download this form and return it to:

Department of Assessments and Taxation
Homestead Tax Credit Division
301 West Preston Street, 8th Floor
Baltimore, Maryland 21201

Fax: (410) 225-9344

You can check the status of your application by revisiting the Maryland Real Property Database.

Want to find out what your home is worth based on the latest closed and pending sales? Fill out the form below.

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