Homestead Property Tax Credit

As defined in Section 11-2-103 of the Baltimore County Code, the Homestead Property Tax Credit is designed to limit the tax burden on property owners whose property assessment have increased. Using a variety of market conditions and other considerations, the Maryland State Department of Assessment and Taxation (SDAT) calculates the annual property assessment for real property located through out the state.

  • Baltimore County limits the increase to four percent over the previous year's taxable assessment.
  • State of Maryland limits its increase to 10 percent.

This credit will reduce county and state tax liability and will be reflected in the property tax bill. The tax credit will be applicable if the following conditions are met during the previous tax year:

  • The property was not transferred to new ownership.
  • There was no change in the zoning classification by the homeowner resulting in an increased value of the property.
  • A substantial change did not occur in the use of the property.
  • The previous assessment was not clearly erroneous.

ELIGIBILITY

The following conditions must be met to apply for the tax credit:

  • The dwelling must be the owner's principal residence.
  • The owner must have lived in the property for at least six months of the year, including July 1 of the year for which the credit is applicable, unless the owner was temporarily unable to do so by reason of illness or need of special care.

An owner can receive a credit on only one property—the principal residence. The status of the property account is identified on the taxpayer's copy of the real property tax bill, either as a principal residence, or not a principal residence.

MORE INFORMATION

Homestead Credits are automatically added to the tax bills when assessments are increasing to offset the increase of the taxable assessment in any one year. When assessments remain consistent or decline, Homestead Credits will decrease until gone entirely.

You can contact the SDAT Credit Office for more information on Homestead Property Tax Credit eligibility or calculations by calling 410-512-4900.