Maryland Homeowners’ Property Tax Credit

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Maryland Homeowners’ Property Tax Credit

The Maryland Homeowners’ Property Tax Credit program is aimed at providing relief to homeowners by capping the amount of property taxes they are required to pay based on their income. The credit is computed by deducting a certain percentage of the homeowner’s income from the total property taxes. To receive the credit, homeowners are required to file for it and qualify by May 1, after which it will be applied directly to their tax bill. If homeowners file after the May 1 deadline but before September 1, any credit due will be reflected on a revised tax bill. If the tax bill has already been paid, homeowners will receive a refund for the credit. Homebuyers may also apply for the tax credit prior to settling on a property to reduce their total closing costs. It is important to note that such application must be made at least 30 days prior to settlement.

Eligibility Requirements 

  • The homeowner must use the property as their primary residence.
  • The combined gross household income of the homeowner and all other residents of the property cannot exceed $60,000.
  • The homeowner must apply for the tax credit every year.
  • The homeowner’s net worth, excluding the cash value of IRAs or qualified retirement savings plans and the value of the property for which the credit application is being made, must not exceed $200,000.

Contact Information 

Maryland State Department of Assessments & Taxation
(410) 767-4433

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