Property taxes are one of the most significant recurring expenses for homeowners in the United States, and understanding how they work in a given state — including Maryland — is crucial for both current and prospective residents. In Maryland, property taxes are more complex than a single statewide figure. Instead, the amount you pay depends on a blend of state, county, and local tax rates, as well as the assessed value of your property.
Unlike some states that levy a uniform state property tax, Maryland’s approach is largely local. The state government sets a relatively small base rate for state-level property tax purposes, but the bulk of what homeowners pay is determined by county governments and Baltimore City — each of which sets its own property tax levy based on budgetary needs.
At a high level, Maryland’s average effective property tax rate — a measure that compares median property taxes paid to the median home value — is about 0.90% of a home’s assessed value, placing the state near the national average.
To understand a property tax bill in Maryland, there are two key pieces of information:
There is also a small state property tax rate that applies broadly to help pay general state obligations such as bonds. As of 2025, this rate is held at 11.2 cents per $100 of assessed value (or about 0.112%) — the same level it has been since 2007.
One of the most important things to know about property taxes in Maryland is that they vary significantly from place to place. While the statewide average hovers around 0.9% to 1.0%, individual counties — and Baltimore City — can be much higher or lower.
Here are a few examples of typical effective property tax rates (2025 data):
This range shows that two homeowners living in different Maryland counties — even with similar home values — might pay hundreds or even thousands of dollars more or less in taxes each year based purely on where they live.
There are several reasons for such variation:
Counties also often have special district taxes for services like fire protection or parks, which add to the total rate you pay.
Maryland’s property taxes are near the national average. According to the Tax Foundation, Maryland’s effective rate has hovered just under 1% — slightly above some states but lower than others like New Jersey or Illinois, where rates often exceed 1.5% or more.
For context, some states with low property taxes — such as Alabama or Hawaii — have rates well below 0.5%, while high–tax states can reach nearly 2% of a home’s value. The national median overall effective rate is about 1.02%.
To help protect homeowners from wild swings in property tax bills due to rapidly escalating assessments, Maryland has laws like the Homestead Tax Credit, which limits how much the taxable value of a principal residence can increase from one year to the next. This can help temper increases even if market values rise sharply.
Additionally, rates must be publicly disclosed, and any significant proposed increases usually require public hearings, giving residents a voice in the process.
If you’re thinking about buying property in Maryland — or evaluating your current tax burden — it’s important to look beyond one single number. While the state’s average property tax rate of around 0.9% to 1.0% provides a useful benchmark, the actual rate you’ll pay depends on the specific county or city where your property is located.
Understanding where your community’s tax money goes and how rates are set can empower you to budget wisely and even engage with local officials about how your tax dollars are being spent.
If you’re buying or already own property in Maryland and want a clearer picture of your tax burden — contact Watter CPA. Our dedicated team stands ready for a detailed review of your property tax bill, available credits and long-term planning opportunities.
In Maryland, your property tax is based on the assessed value set by SDAT (usually updated every three years) multiplied by the combined state, county/city, and any special district tax rates quoted per $100 of assessed value.
Maryland falls around the middle nationally, with an average effective property tax rate of roughly 0.9–1.0% of a home’s value—higher than many low-tax states but lower than high-tax states like New Jersey or Illinois.
