Maryland Property Taxes: Expect a Bigger Bill as Assessment Goes Up

Property values ​​in Maryland have jumped by an average of double digits, according to state tax officials, a sign of strong market momentum in a competitive real estate economy but a blow to homeowners facing utility bills. property taxes higher this year.

In Maryland, more than 2 million real estate accounts are divided into three groups, with each group assessed on a three-year rotating basis. Since the 712,782 “Group 1” properties were last assessed in 2022, overall property values ​​statewide have increased 20%, the Department of Assessment and Taxation said of Maryland in a press release Monday.

This is the largest increase among Group 1 properties since at least 2013, according to state data. The grouping includes both residential and commercial properties, whose values ​​increased by 21.1% and 16.4%, respectively. Three years ago, group 1 contributions increased by 12%.

All 24 jurisdictions in Maryland saw an increase in value, said Dan Phillips, director of the tax department. In a statement, he encouraged Maryland homeowners to claim the property tax credit if they haven’t already done so, which can limit the increase in a homeowner’s taxable assessment by more by a certain percentage each year, regardless of their income level.

As assessments continue to rise, some are calling on the state to offer even more help. In light of Maryland’s housing supply and affordability issues, Cheryl Abrams Davis, president of Maryland REALTORS, said seniors and first-time homebuyers are at risk of finding themselves strapped for cash.

“When property taxes go up, the mortgage goes up, and not everyone can cover all of those expenses,” Abrams Davis said. “We need to help people who are currently at home maintain their housing. »

Abrams Davis suggested the state reviews its tax credit programs and make sure they have been adjusted for inflation. She also said state and local lawmakers could do more to encourage the creation of housing — especially affordable housing — and ease zoning restrictions that prevent denser, taller housing from being built.

In addition to the Homeownership Tax Credit, Marylanders can apply for the Homeowners Tax Credit program, which sets a limit on the amount of property taxes they are responsible for based on their income.

Marylanders widely support increasing housing supply and reducing housing costs, according to a 2024 surveyBut lawmakers and developers who have tried to force more construction have sometimes faced opposition from officials. zoning boards, neighborhood groups and fellow legislators concerned about specific housing proposals. Maryland Governor Wes Moore’s administration successfully lobbied last year for three ambitious housing bills in the Maryland General Assembly in 2024, and they are expected to propose additional legislation this year related to increasing housing supply.

The next session, which lasts 90 days, begins on January 8.

Residential property values ​​in Somerset (37.7%), Wicomico (30.6%), Worcester (29.5%), Allegany (25.5%) and Garrett counties (25.4%) had the highest market value changes since their last assessment, according to state data. In the commercial category, Allegany (46.7%), Frederick (44.1%), Cecil (29.9%), Talbot (23%), and Dorchester (22.4%) counties experienced the highest peaks.

The increases could reflect higher demand for housing in these areasor an increase in home renovations carried out since the start of the coronavirus pandemic. It may also indicate strong sales activity in certain areas and higher premiums on available land.

In the Baltimore metropolitan area, residential properties in Baltimore County (25.3%) experienced the greatest change in value, followed by Anne Arundel (21.9%), Carroll (21.5%), Howard (21 .3%), Baltimore City (21%) and Harford. counties (20.3%). Anne Arundel County had the largest change in commercial property values ​​(22.3%), followed by Carroll (21%), Baltimore (15.9%), Harford (15%), Howard (12 .5%) and Baltimore City (11%).

Counties and municipalities are the primary recipients of property tax revenue and use these funds to establish their annual budgets as well as income taxes. Everyone sets their own property assessment ceiling, ranging from 0% to 10%. Statewide legislation caps the increase at no more than 10 percent per year.

The Maryland Department of Assessment and Taxation figures were based on 60,761 sales within “Group 1” over the past three years. Of those, 96.9% of residential properties saw an increase in value, according to the state. The tax increases are phased in over three years, while the cuts are fully implemented in the 2025 fiscal year.

Notices to Group 1 landowners were sent Monday. Homeowners have 45 days to appeal if they believe their assessment value should be higher or lower.

Last year, a a printing error resulted in approximately 107,000 owners not receive written notices regarding the new assessed value of their home by the January 30 deadline. State lawmakers, recognizing the severity of the problem, stepped in and extended the deadline, giving citizens more time to review the value and appeal. The agency director left the department after the incident and has since been replaced by Phillips.