Property Tax Records in Maryland

When you buy a single-family home or other type of real estate, you'll receive a tax bill every year that must be paid by the due date. Homeowners in Maryland often choose to pay these taxes as part of their mortgage payments. If your annual tax bill is $1,200, your monthly mortgage payment would increase by $100.

The average property tax rate in Maryland is around 0.99%, which matches the national average. While these taxes are collected by the state assessor, they fund a portion of the city and county budgets, including public services. The property taxes you pay each year depend on the value of your home. The median home value in Maryland is just over $422,000, which means that property taxes for homeowners can amount to thousands of dollars.

Property taxes have been levied on homeowners since Maryland was a small settlement. However, it wasn't until 2001 that state law was changed to ensure that a property's assessed value would be equal to its market value. Maryland offers a few exemptions that are designed to reduce a home's assessed value.

Property owners in Maryland receive their tax bills in July and August every year. As mentioned previously, Maryland differs from most states in how property taxes are collected. The state government performs all property assessments once every three years. During an assessment, the property's fair market value is identified. The assessed value is also equal to the market value.

If your home has a current market value of $350,000, its assessed value will also be $350,000. Keep in mind that you can appeal your home's market value within 45 days after you receive your initial notice. Maryland limits assessed value increases to 10%, which means that your property tax bill shouldn't jump too high after each assessment period.

Even though Maryland handles property tax assessments, local governments still set tax rates. Rates can change based on a county's local revenue needs. When a tax rate is altered, the county must set a public hearing to ensure citizens can discuss it. Along with the city of Baltimore, there are 23 counties, each of which has its own tax rate. The average tax rates in the most populous Maryland counties are:

While property tax rates in Maryland are pretty low, you can see that's not the case with everyone. For example, property taxes in Baltimore City are nearly double that of other locals.

Each year, you'll be tasked with paying property taxes in your county. While these taxes are largely handled by the state, they are used to pay for local public services. The types of services that are covered by these taxes depend on the county's budgetary needs. Most counties use some of the money to pay for fire departments and public school systems.

If you want to buy a home in Maryland, you can learn more about its tax history by finding the property tax records. The Department of Assessments and Taxation has a website that the public can enter to search for property tax records. When you navigate to the website, you'll have the opportunity to look for a specific property. Once you find the records you're looking for, you can view information like:

While Maryland property taxes are high, the state offers several exemptions that property owners can take advantage of. Keep in mind that you must apply for these exemptions to gain access to them.

Homeowners' Property Tax Credit Program: The Homeowners' Property Tax Credit Program is designed to provide property owners with a credit if their taxes exceed a specific percentage of their gross income. In this scenario, your income determines how much property tax you pay every year. There are, however, certain qualifications you must meet.

To be eligible for this credit, you'll need to own the property and live there for six or more months during the year. Your net worth can't exceed $200,000 when factoring retirement accounts into the equation. The combined gross household income that you earn can't be higher than $60,000.

This tax credit is based on the amount of your property taxes that exceed your income. For example, let's say that your household income is just $20,000. If you earn $20,000 per year, you'll be limited to $780 in property taxes. You can claim the credit for any additional taxes you pay above this limit. If you earn $30,000 per year, the tax limit is $1,680. You can calculate your tax limit up to $60,000 by navigating to this link for the Homeowners' Property Tax Credit Program.

Disabled Veteran Exemption: If you're a veteran who has a 100% disability that's connected to your service, you won't need to pay property taxes. Make sure you submit Form dd-214 to inform the state of why you were released or discharged from the military. This exemption isn't available to veterans who were dishonorably discharged.

Blind Persons Exemption: To receive this exemption, you need to own and live in the dwelling. This exemption reduces your property's assessed value by $15,000. Before you apply for it, you'll need to seek a certification from your physician that proves you have a permanent impairment in both of your eyes. Keep in mind that the $15,000 exemption is prorated.

When you want to buy or invest in a home, there are a few methods you can use to search property tax records. Since the state controls property taxes directly, you'll need to use the Property Data Search portal that's hosted by the Maryland Department of Assessments and Taxation.

Once you reach this portal, you'll be tasked with selecting the county you live in and the search method you'd like to use. There are four search methods at your disposal, which include street address, map, property account identifier, and property sales. After you enter the necessary information and find the property you're interested in, you should be able to view all property tax info.

You can also search for these records by navigating to a third-party tool like PropertyChecker. Use one of the following parameters to conduct your search:

When you search for a Maryland home through PropertyChecker, you'll be able to view a lot of information, which extends to:

If your tax bill is higher than you believe it should be, Maryland allows property owners to appeal their taxes. You'll have the opportunity to appeal your home's assessment value. Keep in mind that there are four appeal options, the first of which you can seek after you receive your assessment notice in the mail.

Step 1: Maryland assessors usually perform appraisals and calculate assessments every three years. Once this process occurs, you should receive a Notice of Assessment in the mail that shows your home's old market value and new value. Along with current market influences, the new value is meant to highlight any renovations that have been done to your property as well as all conditions that could affect its value.

If you choose to appeal, you can do so online with the control number that's listed on the Notice of Assessment. You can also submit your request at your local Department of Assessments and Taxation office. Once you receive the notice in the mail, you'll have 45 days to appeal. The state tries to complete all appeals by June 1.

Step 2: Once you file an appeal, you can take part in a hearing by phone, video, or in person. The first part of this process is known as the Supervisor's level appeal, which is an informal review that mainly focuses on exchanging information. You'll have the opportunity to provide evidence that the value of your property is too high. The state's appraiser will also give you documents that support their decision.

At this level, hearings usually take around 15 minutes. Once a date for this hearing is set, you can request a postponement if you need to obtain more information that supports your argument. To increase your chances of winning the appeal, focus on factors that you believe impact the value of your property.

You'll also need to explain why the new market value isn't an accurate reflection of the property's true value. If you find any mathematical errors on the worksheet you receive, point them out. You can also provide the assessor with information on sales of comparable properties. Avoid comparing the assessor's market value to past property values.

Step 3: Once you take part in the informal review, you'll receive a notice of their decision. If you disagree, you can file an additional appeal to the Property Tax Assessment Appeals Board (PTAAB). Make sure you file the appeal within 30 days following the date of the informal review notice.

At this level, you don't need legal assistance. A hearing before the PTAAB doesn't require any fees or supporting evidence. This board will simply look at the documents that were presented during the previous appeal. You can submit this appeal in writing or in person.

Step 4: You may still disagree with the decision that the PTAAB board makes. In this scenario, you can choose to file another appeal to the Maryland Tax Court, which must be done within 30 days. This is an independent body that has been appointed directly by the Governor.

You need to appear in person on the date when the hearing is held. Keep in mind that this is still viewed as an informal hearing. You don't need to pay anything to have your case heard. Depending on the findings of the court, a formal appraisal of your home might occur. You should receive a decision from the court in the mail.

Since the average price for a home in Maryland is well over $400,000, property tax records can have a significant impact on real estate transactions throughout the state. For buyers, these records provide data that can be invaluable when looking for the right properties.

In some counties, property tax rates are below 1%. On the other hand, these rates can be as high as 1.72%. A potential buyer might reconsider purchasing a home in a specific location if they discover that their property taxes will add thousands of dollars to their annual mortgage payments.

If you're investing in a Maryland home, you can use property tax records to find out how much taxes you'll likely pay each year. The purpose of investing in a rental property is to earn enough income to exceed the payments that need to be made every month. Higher property taxes make it more difficult to earn a profit or positive cash flow.

Even though the state levies and collects property taxes, each county can perform tax sales when homeowners don't pay what they owe. Investors can take part in online auctions that allow them to bid on tax lien certificates.

If a homeowner doesn't pay their taxes for a few years, the county will put a lien on the property. Gaining ownership of a tax lien certificate allows you to collect taxes and interest from the homeowner. If they don't pay, you can eventually foreclose on the home.