What is the Maryland homestead assessment cap?

For Maryland State property tax purposes the Homestead Property Tax Credit uses a 10 percent annual assessment-growth limit. Counties and municipalities must use a limit of 10 percent or less and may adopt lower local caps.

Do Maryland homeowners have to apply for the Homestead Credit every year?

Generally no. SDAT describes the Homestead Tax Credit Eligibility Application as a one-time application during the homeowner's time in the property, although continued eligibility requirements must still be met.

Can a rental or vacation home receive Maryland's Homestead Credit?

The program is intended for the owner's principal residence. A homeowner generally may claim the credit for only one dwelling, and rental or substantial changes in use can affect eligibility.

How do I check my Maryland Homestead application status?

Use SDAT's Real Property Search, select the county and property, and review the Homestead Application Status shown in the property record.

Is the Homeowners' Property Tax Credit the same as the Homestead Credit?

No. The Homestead Property Tax Credit limits taxable assessment growth on an eligible principal residence. The Homeowners' Property Tax Credit is a separate income-based program requiring a new application for the applicable year.

Maryland Homestead Exemption: Rules & Savings Skip to main content

Maryland Property Tax Guide · 2026–2027

Maryland Homestead Exemption: Rules & Savings

Q: Does Maryland have a homestead exemption?

Maryland's principal statewide homestead benefit is officially called the Homestead Property Tax Credit. It generally limits the amount of annual assessment increase subject to property tax on an eligible principal residence rather than subtracting a fixed dollar exemption from taxable value.

Q: What is the deadline for the Maryland Homestead Property Tax Credit application?

Maryland Tax-Property Article Section 9-105 generally requires the one-time Homestead application to be filed on or before May 1 preceding the first taxable year for which the credit is to be allowed, subject to statutory exceptions and retroactive provisions.

Searching for the Maryland homestead exemption? Maryland’s main statewide protection is actually the Homestead Property Tax Credit, which can protect a qualifying principal residence from taxation on assessment growth above the State or applicable local annual cap.

Apply With Maryland SDAT → Estimate Your Credit Check 2026–27 Caps

✓ Maryland SDAT researched ✓ 2026–27 local caps reviewed ✓ Maryland statute checked ✓ State office & map included

Program type Assessment-growth credit Not a fixed statewide dollar exemption from home value.

State cap 10% annually State property-tax calculation; local caps can be lower.

Local cap 10% or less County and municipal percentages depend on jurisdiction.

Application Generally one time May 1 is the key statutory date for initial credit eligibility.

Important Maryland distinction

Maryland Does Not Use a Florida-Style Homestead Exemption

The search phrase “Maryland homestead exemption” is common, but Maryland’s primary statewide homeowner protection is officially the Homestead Property Tax Credit. Instead of subtracting a fixed amount such as $25,000 or $50,000 from taxable value, Maryland limits how much of a large annual assessment increase can be taxed on an eligible principal residence.

Maryland Homestead Credit: Quick Answer

Maryland’s Homestead Property Tax Credit protects qualifying homeowners from paying property tax on assessment growth above an annual percentage limit.

State rule: for Maryland State property-tax purposes, assessment growth above 10% is generally protected by the Homestead Credit. Counties and municipalities are required to use a limit of 10% or less and may adopt a substantially lower cap.

That means the amount you save is not the same for every Maryland homeowner. Savings depend on the increase in your property’s taxable assessment, the Homestead cap adopted by your county or municipality and the applicable property-tax rates.

How the Maryland Homestead Tax Credit Works

Maryland periodically reassesses real property. SDAT explains that increases from an old market value to a new market value are generally phased in over a three-year reassessment cycle.

The Homestead Credit is then used to protect an eligible homeowner from taxation on an annual assessment increase exceeding the applicable cap.

Prior taxable assessment Starting point

→

Apply Homestead cap State 10% / local 10% or less

→

Credit excess increase Protected from applicable property tax

It does not freeze your market value. SDAT can still determine that the property’s market value increased. The Homestead program limits the amount of that assessment growth that can be taxed in a particular year.

Simple Maryland Homestead Savings Example

SDAT provides an example showing how the assessment cap operates. Suppose a qualifying property’s prior taxable assessment was $100,000 and its relevant new assessment becomes $120,000.

Previous assessment

$100,000

10% capped amount

$110,000

Protected assessment

$10,000

If the applicable tax rate were $1.04 per $100 of assessed value, a $10,000 protected assessment would produce a $104 tax credit for that portion of the tax.

A lower county cap can create a larger local credit when assessment growth exceeds that cap.

Who Qualifies for Maryland’s Homestead Credit?

The core requirement is that the dwelling be the homeowner’s principal residence, not merely real estate the person owns in Maryland.

Principal residence

The property generally must be the single home the owner actually uses as a principal legal residence.

Residence requirement

Maryland law generally requires actual residence by July 1 of the taxable year, subject to statutory exceptions.

One dwelling

A homeowner generally may claim the Homestead Property Tax Credit for only one dwelling.

SDAT may consider indicators such as

The address used for Maryland income-tax purposes.
Maryland driver’s license or identification-card address.
Voter-registration address, when applicable.
Whether the home is expected to remain the owner’s principal residence.
Whether some or all of the property is rented.

Conditions That Can Change or Interrupt the Credit

SDAT identifies several events that can affect Homestead Credit treatment.

A transfer of the dwelling for consideration to new ownership.
A homeowner-requested zoning change that increases value.
A substantial change in the use of the property.
A prior assessment that was clearly erroneous.
Loss of principal-residence status.

Buying a house with a large Homestead Credit? Do not assume the seller’s protected assessment automatically becomes your permanent taxable assessment. A transfer to new ownership can change the property’s Homestead calculation.

2026–2027 Maryland Homestead Credit Caps

Local caps matter because a county may protect assessment growth at a level well below Maryland’s 10% State limit.

Jurisdiction	2026–27 local Homestead cap	2026–27 county real-property tax rate*
Allegany County	4%	$0.9750 per $100
Anne Arundel County	2%	$0.9680 per $100
Baltimore City	4%	$2.2480 per $100
Baltimore County	4%	$1.1000 per $100
Calvert County	10%	$0.9670 per $100
Caroline County	5%	$0.9600 per $100
Carroll County	5%	$1.0180 per $100
Cecil County	4%	$0.9724 per $100
Charles County	7%	$1.1410 per $100
Dorchester County	5%	$1.0300 per $100
Frederick County	5%	$1.1100 per $100
Garrett County	2%	$1.0000 per $100
Harford County	5%	$0.9779 per $100
Howard County	5%	$1.0440 per $100
Kent County	5%	$1.0220 per $100
Montgomery County	10%	$0.6706 per $100
Prince George’s County	3%	$1.0000 per $100

*Selected county-level figures from Maryland SDAT’s July 2026 2026–2027 Tax Rates & Homestead Credit Caps table. Municipalities can have their own Homestead cap and tax rate, so homeowners inside an incorporated city or town should check the full official table.

Example: a qualifying Anne Arundel County homeowner may have a 2% county assessment-growth cap while the State portion of the bill still uses the State’s 10% Homestead calculation.

View Maryland SDAT’s current tax-rate and Homestead-cap tables →

Maryland Homestead Credit Savings Calculator

This simplified calculator estimates the local and Maryland State Homestead benefit based on the assessment figures and tax rates you enter.

Prior year’s taxable assessment ($)

Current assessment used for calculation ($)

Local Homestead cap (%)

Local property-tax rate per $100

Maryland State rate per $100

Estimated annual Homestead tax credit $0.00 Local and State estimates will appear here.

Educational estimate only. Actual Homestead credits can differ because Maryland uses reassessment phase-ins, separate State/county/municipal calculations, special taxing districts, changes in tax rates, ownership changes and other statutory rules. Use your official SDAT assessment and tax bill for final figures.

When Should You Apply?

Key Maryland Homestead date: Maryland Tax-Property §9-105 generally provides that the Homestead application must be filed on or before May 1 preceding the first taxable year for which the credit is to be allowed, subject to statutory exceptions.

SDAT describes the Homestead Eligibility Application as a one-time filing during your time in the property. You normally do not submit a fresh Homestead application every year merely to keep an approved status.

What if you filed late?

Maryland law contains provisions addressing homeowners who were otherwise eligible in a prior taxable year but failed to file the required application. Depending on the facts, SDAT may be able to establish retroactive Homestead qualification for the prior year for assessment-calculation purposes.

Homeowners age 70 or older also have a specific statutory provision addressing situations in which they were eligible in a prior taxable year but failed to file.

Because timing can affect both the current and future taxable assessment, contact SDAT rather than assuming a missed May 1 filing means there is no remedy.

How to Apply for the Maryland Homestead Tax Credit

Check your existing Homestead status

Search your property through Maryland SDAT’s Real Property database. The property page includes a Homestead Application Status field.

Confirm that the home is your principal residence

The application asks questions intended to confirm that the property is your single principal residence rather than a vacation, investment or secondary home.

File the one-time application

SDAT offers electronic filing through its Homestead Tax Credit application system and Maryland OneStop.

Provide required owner information

The official application requires identifying information for homeowners and spouses and asks questions about residence, licensing, voting and rental use.

Check the status again

SDAT states that a status of Approved or Application Received generally means no additional filing action is required at that stage.

Homestead Application → Check Property Status →

Information to Have Ready

Maryland’s Homestead application is designed to verify principal residence status. Depending on your circumstances, be prepared for questions or records involving:

Names of all homeowners appearing on the deed.
Spouse information where required by the application.
Social Security numbers required by the official form.
Property address and Maryland property-account information.
Maryland driver’s license or identification-card address.
Voting address, if registered to vote.
Income-tax filing address.
Whether any portion of the principal residence is rented.

Protect sensitive information: SDAT specifically warns homeowners not to email Homestead applications containing Social Security numbers or other sensitive personal information. Use the secure online system, mail or another method approved by SDAT.

Recently Bought a Maryland Home?

New homeowners should not assume Homestead eligibility automatically transfers from the seller.

Seller’s tax bill

It may reflect years of accumulated Homestead protection and may therefore understate what a new owner’s property taxes could become.

Your own application

SDAT states that new purchasers are mailed Homestead information after the deed is recorded and Department records are updated.

When comparing Maryland homes, do not use the seller’s current tax bill as your only estimate of future property taxes.

What if You Rent Part or All of the Home?

The Homestead Credit is tied to the homeowner’s principal residence. Maryland’s application specifically asks whether any portion of the principal residence is rented.

Maryland law also allows SDAT to apportion an assessment when a dwelling is not used primarily for residential purposes, and a substantial change in use can affect Homestead eligibility.

Renting a room does not necessarily create the same result as converting the entire home into an investment property. If your property’s use is changing materially, contact the local SDAT assessment office for the property before relying on prior Homestead treatment.

Maryland’s Three-Year Reassessment Cycle

Understanding Maryland Homestead savings requires understanding the reassessment process.

Real property is generally reassessed once every three years.
A new market value may be higher or lower than the previous value.
Assessment increases are generally phased in over three years.
The Homestead Credit then limits taxable annual growth for qualifying residences.

Assessment and Homestead Credit are different questions. If you believe SDAT’s market value itself is wrong, the appropriate response may be an assessment appeal rather than merely checking your Homestead status.

What if You Disagree With Your Assessment or Homestead Decision?

Assessment appeal

SDAT states that property owners generally may appeal a new market value within 45 days from the date of the assessment notice.

Homestead denial

If SDAT denies a Homestead Tax Credit and you believe you qualify, contact the Homestead Tax Credit Program. SDAT states that a final denial by the Central Office may be appealed within 30 days to the Property Tax Assessment Appeal Board for the jurisdiction where the property is located.

An assessment appeal challenges the property’s valuation. A Homestead eligibility dispute concerns whether the property or homeowner qualifies for the assessment-growth credit. They are not the same issue.

Don’t Confuse Homestead With Maryland’s Homeowners’ Tax Credit

Maryland also offers a separate income-based program called the Homeowners’ Property Tax Credit, sometimes called a circuit-breaker program.

Feature	Homestead Property Tax Credit	Homeowners’ Property Tax Credit
Main purpose	Limits taxable annual assessment growth	Income-based property-tax relief
Income test	No standard household-income qualification for the basic Homestead program	Yes
Application frequency	Generally one-time eligibility application	Apply for the applicable credit year
2026 household income maximum	Not applicable to basic Homestead eligibility	$60,000
2026 net-worth limit	Not the standard Homestead test	$200,000, excluding the qualifying home and specified retirement assets
2026 filing deadline	May 1 is the statutory initial Homestead filing date	October 1, 2026

A homeowner may potentially benefit from both programs if all separate eligibility requirements are satisfied.

2026 Income-Based Homeowners’ Credit: Key Figures

For homeowners who may qualify for additional relief, the 2026 HTC-1 application lists the following major requirements and dates.

Household income

Combined gross household income generally cannot exceed $60,000.

Net worth

Generally less than $200,000, excluding the qualifying property and specified retirement savings.

4/15

Helpful early filing date

SDAT advises filing a complete 2026 application by April 15, 2026 for the best chance of having an approved credit reflected on the July tax bill.

10/1

Final 2026 deadline

The 2026 Homeowners’ Property Tax Credit filing deadline is October 1, 2026.

The 2026 form also states that the lesser of $300,000 or the total assessed value after the Homestead Credit is used for the eligible-tax calculation under this separate program.

Other Maryland Property-Tax Relief to Check

County supplemental credits

Some counties supplement Maryland’s income-based Homeowners’ Tax Credit. Eligibility and benefit amounts vary.

Veterans’ exemptions

Maryland provides property-tax exemptions in qualifying situations involving certain disabled veterans and surviving spouses.

Blind-person exemptions

Separate Maryland property-tax relief may exist for qualifying blind homeowners under applicable rules.

County and municipal programs

Local governments may offer additional credits that are distinct from the statewide Homestead program.

Why Your Maryland Property-Tax Bill Can Still Increase

The Homestead Credit is an assessment-growth protection, not a guarantee that the final amount due can never rise.

Your taxable assessment can still rise up to the applicable cap.
Your county or municipality can change its property-tax rate.
Special taxing districts or charges can affect the total bill.
Improvements or changes in property use can affect assessment treatment.
A transfer of ownership can change Homestead calculations.

SDAT determines assessments, while local governments determine the tax rates used to calculate much of your property-tax bill.

Maryland SDAT Homestead Contact Information

Maryland Department of Assessments and Taxation

700 E. Pratt St., Suite 2700
Baltimore, MD 21202-6377

SDAT headquarters: 410-767-1184
Toll free: 1-888-246-5941

Homestead Tax Credit:
410-767-2165
1-866-650-8783

Homestead email: sdat.homestead@maryland.gov

Google Map SDAT Website

Local real-property questions: SDAT maintains separate assessment offices for Maryland’s counties and Baltimore City. Assessment appeals, property-record corrections and several exemption programs may need to be handled by the local assessment office rather than State headquarters.

Find your Maryland local assessment office →

Maryland Department of Assessments and Taxation headquarters, 700 E. Pratt St., Suite 2700, Baltimore, Maryland. For property-specific assessment matters, confirm whether your local county or Baltimore City assessment office is the appropriate contact.

Mailing a Paper Homestead Application

SDAT’s Homestead program page currently lists the following address for paper Homestead applications:

Maryland Department of Assessments and Taxation
Homestead Tax Credit Division
700 East Pratt Street
2nd Floor, Suite 2700
Baltimore, Maryland 21202

SDAT also lists 410-225-9344 as the fax number for completed paper Homestead applications.

Do not send an application containing Social Security numbers or other confidential information by ordinary email.

Official Maryland Homestead Resources

Maryland Homestead Tax Credit SDAT’s official eligibility, application and program information. Online Homestead Application Secure official online filing service. Maryland Real Property Search Find assessments and check Homestead application status. 2026–27 Tax Rates & Homestead Caps Official county and municipal rates and Homestead percentages. Homeowners’ Property Tax Credit Separate income-based Maryland property-tax relief program. Maryland Assessment Offices Local SDAT office addresses, phone numbers and office hours. Maryland Tax-Property §9-105 Current statutory framework for the Homestead Property Tax Credit. SDAT Assessment FAQ Reassessment cycles, appeals, tax calculations and Homestead guidance.

Frequently Asked Questions

Does Maryland have a homestead exemption?

Maryland’s main statewide homestead program is officially the Homestead Property Tax Credit. Unlike a traditional fixed-dollar exemption, it generally limits taxation of annual assessment growth exceeding the applicable Homestead cap.

How much is the Maryland homestead exemption?

There is no single fixed statewide dollar amount. Savings depend on how far the qualifying property’s assessment increases above the applicable State, county or municipal Homestead cap and the property tax rate applied to that protected assessment.

What is Maryland’s State Homestead cap?

For Maryland State property-tax purposes, the Homestead calculation uses a 10% annual assessment-growth limit. County and municipal caps may be 10% or less.

Which Maryland counties have lower Homestead caps?

Many do. For the 2026–2027 tax year, examples include Anne Arundel County at 2%, Prince George’s County at 3%, Baltimore County and Baltimore City at 4%, and Howard County at 5%. Always check SDAT’s current tax-rate table because percentages can change.

What is the Maryland Homestead application deadline?

Maryland Tax-Property §9-105 generally requires the application on or before May 1 preceding the first taxable year for which the Homestead Credit will be allowed, subject to specific statutory exceptions.

Do I apply for Maryland Homestead every year?

Generally no. SDAT describes the Homestead eligibility application as a one-time application during your ownership and occupancy of the property, although continued eligibility rules remain applicable.

How do I know if my application is already approved?

Search the property in SDAT’s Maryland Real Property database and locate the Homestead Application Status shown on the property page.

Can I receive Maryland Homestead on two houses?

Generally no. Maryland law provides that a homeowner may claim the Homestead Property Tax Credit for only one dwelling, which must meet the principal-residence requirements.

Can a Maryland vacation home receive the Homestead Credit?

Merely owning the property does not make a vacation home eligible. The program is tied to the owner’s qualifying principal residence.

Can my property value still increase after I receive Homestead?

Yes. The program does not freeze market value. It limits the taxable effect of qualifying annual assessment increases above the applicable cap.

Is Maryland’s Homeowners’ Tax Credit the same program?

No. The Homeowners’ Property Tax Credit is an income-based program. For 2026 its application generally has a $60,000 combined gross household-income maximum, a $200,000 applicable net-worth limit and an October 1, 2026 filing deadline. The Homestead Credit is an assessment-growth program.

Can I appeal a Homestead denial?

Yes. SDAT advises contacting the Homestead Tax Credit Program first. A final Central Office denial may be appealed within 30 days to the Property Tax Assessment Appeal Board in the jurisdiction where the property is located.

Editorial & legal notice: This guide is an independent educational explanation of Maryland property-tax programs and is not affiliated with the Maryland Department of Assessments and Taxation. It is not legal, tax or financial advice. Homestead percentages, tax rates, assessment-office information and credit rules can change. Verify filing decisions with Maryland SDAT and the appropriate local assessment or tax-billing office. Information reviewed September 1, 2026.