Home Improvement Property Tax Credit

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Home Improvement Property Tax Credit

The Home Improvement Property Tax Credit is designed to incentivize homeowners to make improvements to their primary residence that increase the assessed value of the property. Under this program, homeowners can receive a 5-year tax credit that provides 100% relief from the increase in city property tax during the first year. The credit decreases by 20% each year for the following four years. If the property is sold during the five-year credit period, the remainder of the credit can be transferred to the new owner so long as they continue to meet eligibility requirements. 

Eligibility Requirements

  • The property must be the homeowner’s primary residence
  • The credit will not apply to any increase in value that exceeds $100,000 
  • The credit is applied only to the increased value of the home due to the improvement, not the total home value
  • The property must be substantially improved since the date of the last reassessment 
  • The property must assess to a higher value than the prior assessment 


City of Baltimore
Department of Finance
Fiscal Integrity Office
100 North Holliday Street
City Hall, Room 544 Baltimore, MD 21201


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