If you live in Maryland or are considering buying property there, you may have noticed that property taxes can feel surprisingly high. While Maryland's overall property tax rate is around the national average, several factors contribute to why the actual amounts owed can seem steep. Understanding these factors can help you plan better and manage your costs.
One of the main reasons Maryland property taxes seem high is the elevated property values, especially in certain regions.
Areas like:
—often have significantly higher real estate prices compared to other parts of the country. Since property taxes are based on the assessed value of your home, higher home prices naturally lead to higher tax bills—even if the tax rate itself isn’t excessive.
Maryland places a strong emphasis on maintaining quality public services. Property taxes play a major role in funding:
Local governments rely heavily on property tax revenue to support these essential services. In counties with more comprehensive public programs or higher costs of living, taxes need to be sufficient to cover those expenses.
While the state of Maryland charges a modest property tax rate, counties and municipalities also levy their own property taxes. This layering effect means:
In places with dual taxation (like cities within counties), the total effective rate can climb higher than expected.
Maryland property taxes feel high mainly because of high property values and the state's commitment to well-funded public services. While the base tax rates are reasonable, local surcharges and the overall cost of living push final tax bills higher. If you're planning to buy or already own property in Maryland, it’s important to understand how these factors affect your bottom line—and to take advantage of any tax credits or exemptions that may be available.
