If you own and live in a home in Maryland, there is an important property-tax benefit you should know about: the Maryland Homestead Property Tax Credit.
It is sometimes called the “Homestead Exemption,” but it does not completely exempt your home from property taxes. Instead, it may help protect you from being taxed on a large increase in your home’s assessed value all at once.
Here is what every Maryland homeowner should know.
What Is the Maryland Homestead Tax Credit?
Property values can increase significantly between assessments. When your home’s assessed value rises, your property-tax bill may rise as well.
The Homestead Tax Credit limits how much of that assessment increase can be taxed each year on an eligible owner-occupied principal residence.
For Maryland state property taxes, annual taxable assessment increases are limited to 10%. Counties and municipalities may establish lower limits for their local property taxes.
This does not prevent your property’s assessed market value from increasing. Instead, the credit limits the portion of that increase used to calculate your property taxes during that particular year.
Why Is This Credit Important?
Imagine that your home’s assessed value increases substantially following a reassessment. Without the Homestead Tax Credit, that increase could have a much larger immediate effect on your property-tax bill.
If you qualify, the credit may reduce the amount of the assessment increase that is taxable that year. Depending on the value of your home and the applicable local assessment cap, that could create meaningful savings.
Anne Arundel County currently has a 2% county Homestead Credit limit, while Queen Anne’s County has a 5% county limit. Municipal limits may be different, so the amount of protection depends on the property’s location and taxing jurisdiction.
Who May Qualify?
The credit is intended for the one home you own and use as your principal residence.
It is not generally intended for:
Vacation homes
Second homes
Rental or investment properties
Properties that are not the owner’s primary legal residence
Maryland introduced the application requirement in part to prevent credits from being applied improperly to vacation homes and rental properties.
Your eligibility and the amount of any credit are determined by the Maryland State Department of Assessments and Taxation, commonly called SDAT.
Do Homeowners Need to Apply?
Yes. Maryland requires homeowners to submit a one-time Homestead Tax Credit Eligibility Application to establish eligibility.
The credit is not based on income, but homeowners must confirm that the property is their principal residence. Only one principal residence may receive the credit.
If you recently purchased your home, SDAT should mail an application after the deed is recorded and the property records are updated. However, you can also check your application status and access the online application yourself.
How Can You Check Your Status?
You can check whether an application is already on file by searching for your property in Maryland’s Real Property database.
After selecting your county and locating your property, look for the Homestead Application Status.
If the record says “No Application,” Maryland recommends submitting an application, even if you believe you previously completed one.
You can access the official application through the Maryland Homestead Tax Credit Eligibility Application.
What Information Will You Need?
The application may request information used to confirm that the home is your principal residence, including:
Your property address
The names of the property owners
Social Security numbers
Information concerning your principal residence
The property’s unique Homestead access number, when applicable
Maryland states that its online application system is encrypted and that confidential information receives legal and administrative protections.
Always apply through an official Maryland government website. Be cautious of companies that ask you to pay a fee for something you can complete directly through the state.
Is This the Same as the Homeowners’ Property Tax Credit?
No. These are two different Maryland programs.
The Homestead Property Tax Credit limits taxable assessment increases on an eligible principal residence and generally involves a one-time eligibility application.
The Homeowners’ Property Tax Credit is a separate income-based program that may limit property taxes in relation to household income. That program requires a new application and supporting income information each year. The filing deadline for the 2026 Homeowners’ Property Tax Credit is October 1, 2026.
Depending on your circumstances, you may qualify for one or both programs.
A Simple Step That Could Make a Difference
The Homestead Tax Credit application is easy to overlook, especially when you are busy settling into a new home. However, confirming your status now could help protect you from larger taxable assessment increases in the future.
Take a few minutes to:
Look up your property in Maryland’s Real Property database.
Check your Homestead Application Status.
Submit the one-time application if one is not already on file.
Review your property-tax bill and assessment notices carefully.
Need Help Finding the Right Information?
Understanding assessments, credits and property-tax notices can feel overwhelming. If you are unsure where to look or need help finding the appropriate state resources, please reach out.
