When considering where Maryland stands in terms of property taxes, it helps to look at both statewide effective tax rates and how the state compares to others across the U.S. Property tax rankings give insight into how costly homeownership can be relative to other states.
Maryland’s effective property tax rate — the percentage of a home’s value paid annually in property taxes — has consistently hovered near the national average. According to recent median rate data, Maryland’s effective rate is around 0.87% to 0.95%, depending on the data source and methodology used. On a nationwide ranking of property tax rates, this places Maryland roughly in the mid-20s to low-40s among the 50 states and the District of Columbia. States like Hawaii, Alabama, and Nevada typically rank with the lowest property taxes, while New Jersey and Illinois are near the highest. In these lists, Maryland tends to fall closer to the middle — higher than many Southern and Western states but lower than most Northeastern and some Midwestern states.
Another view comes from broader tax climate reports, which include property tax as one of several tax components. In the State Business Tax Climate Index, which scores states on the overall competitiveness of their tax systems, Maryland’s property tax ranking has been reported around 42nd to 43rd lowest (meaning it is relatively less favorable compared to many other states). This ranking reflects how property tax factors into overall business costs, not just homeowner bills. Maryland’s position is influenced by local tax structures, property values, and how the state and counties levy taxes.
Looking strictly at effective property tax rates:
Because Maryland’s home values tend to be above the national median, even a moderate effective rate can result in significant dollar amounts paid in taxes, even if the percentage rank is not at the top. This often leads residents to perceive property taxes as relatively high, especially in more expensive counties and urban areas.
If you’re trying to understand what Maryland’s property tax ranking means for your budget, home purchase, or investment plans — Watter CPA can break down your expected costs and options in plain language. Reach out to our dedicated team today for a personalized property tax review.
