How Much Is Annual Property Tax in Maryland?

Understanding how much you’ll pay in property taxes is essential when budgeting for homeownership in Maryland. While the state’s average effective property tax rate is 1.02%, the actual amount you owe each year can vary significantly based on several factors, including your property's assessed value and your local tax rates.

Maryland’s Average Property Tax Rate

Maryland’s average effective property tax rate of 1.02% is close to the national average.
This means that, on average, homeowners pay about 1.02% of their property's assessed value each year in taxes.

For example: If your home is assessed at $400,000, your estimated annual property tax would be around $4,080.

However, this is only an average. Your final tax bill might be higher or lower depending on local rates and assessments.

How Property Taxes Are Calculated

In Maryland, property taxes are based on two main factors:

• Assessed value of the property: Determined by the Maryland Department of Assessments and Taxation (SDAT), which reassesses properties on a three-year cycle.
• Local tax rates: Each county and city sets its own additional property tax rates, which are added to the state's base rate.

To estimate your annual property tax:

1. Find your property's assessed value (not necessarily its market value).
2. Multiply it by the combined state and local tax rate.

Variations by County and City

Local property tax rates can vary dramatically across Maryland.

For example:

• Montgomery County and Howard County generally have lower tax rates but higher property values.
• Baltimore City has higher tax rates, even though property values are typically lower.

This means two homeowners with similarly priced properties in different parts of Maryland could have very different tax bills.

Available Tax Credits and Exemptions

Maryland offers several programs that can lower your property tax bill, such as:

• Homestead Tax Credit (limits increases in taxable assessments)
• Homeowners’ Property Tax Credit (based on income)
• Senior citizen tax credits

Checking your eligibility for these programs can lead to significant annual savings.

Conclusion

While Maryland’s average property tax rate is about 1.02%, your actual bill depends heavily on your property’s assessed value and local tax rates. By understanding how the system works and exploring available credits, you can better estimate—and potentially lower—your annual property tax burden.