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Maryland has two state programs that cut property tax costs based on income, both run by the State Department of Assessments and Taxation (SDAT). The Homeowners’ Tax Credit limits how much property tax you pay compared with your income [1]. The Renters’ Tax Credit gives renters back part of the property tax built into their rent, up to $1,000 [2]. Both have an October 1 deadline [1][2].
At a glance
- Homeowners: income limit
- $60,000 combined gross income [1]
- Homeowners: net worth limit
- $200,000, not counting the home [1]
- Homeowners: value counted
- Up to $300,000 of assessed value [1]
- Renters: maximum credit
- $1,000 [2]
- Deadline for both
- October 1 [1][2]
The Homeowners’ Tax Credit
Who qualifies
- It’s your principal home. The dwelling is your main residence, housing no more than two families. You live there, or expect to, for more than six months of a 12-month period that includes July 1 [1].
- Income: combined gross income of $60,000 or less for the previous calendar year [1].
- Net worth: $200,000 or less as of December 31 of the previous year. The home itself, retirement savings, the cash value of life insurance, and personal belongings like cars and furniture don’t count [1].
- One home only. You can claim the credit on one dwelling [1].
New buyers can qualify too. The credit is prorated for the days you live there during the tax year [1].
How the credit is figured
The credit isn’t a flat amount. It’s the difference between your property tax and a share of your household income [1]:
- Start with the property tax on the lesser of $300,000 or your home’s assessed value [1].
- Figure your “tax limit” from your combined income, using these rates [1]:
| Combined income | Rate |
|---|---|
| First $8,000 of income | 0% |
| Next $4,000 ($8,001 to $12,000) | 4% |
| Next $4,000 ($12,001 to $16,000) | 6.5% |
| Income over $16,000 | 9% |
- The credit is the tax from step 1 minus the tax limit from step 2. Credits under $1 aren’t paid [1].
Example (our arithmetic): a household with $30,000 of combined income has a tax limit of $0 + $160 + $260 + $1,260 = $1,680. If the tax on its home’s first $300,000 of value is $3,000, the credit is $1,320, and the household pays $1,680.
The Renters’ Tax Credit
Who qualifies
You rent and live in the home during the year, and you’re one of the following [2]:
- 60 or older,
- permanently and totally disabled, either qualifying for Social Security, railroad retirement, military or federal disability benefits, or as found by a county health officer or Baltimore City’s health commissioner, or
- under 60, with at least one dependent child under 18 living with you, gross income below the federal poverty threshold, and no federal or state housing subsidy or public housing.
Your combined net worth also has to be $200,000 or less [2].
How the credit is figured
Maryland assumes 15% of the rent you paid during the year went to property tax [2]. Your credit is that amount minus a share of combined income [2]:
| Combined income | Rate |
|---|---|
| First $4,000 of income | 0% |
| Next $4,000 ($4,001 to $8,000) | 2.5% |
| Income over $8,000 | 5.5% |
The most you can get is $1,000 [2]. The Comptroller pays the credit after SDAT approves it [2].
How to apply
| Situation | Deadline |
|---|---|
| Standard deadline | October 1 |
| Late, with good cause | Through October 31 |
| Applicants 70 or older | Up to 3 years late, if eligible for that year |
- Apply to SDAT on its application for the credit you want. The renters’ application is sworn, so answer carefully [2].
- Have proof ready. SDAT can ask for tax returns or other proof of income and net worth [2].
- File by October 1 [1][2].
- Buying a home? You can apply once you have a sales contract or after settlement. If you apply before settlement, file within 7 working days after the contract is signed [1].
Sources
Common questions
What is the income limit for Maryland's Homeowners' Property Tax Credit?
Combined gross household income can't be more than $60,000 for the prior calendar year, and combined net worth can't be more than $200,000, not counting the home itself and retirement savings. Gross income includes non-taxable income like Social Security.
What is the deadline for the Maryland Homeowners' Tax Credit?
October 1 of the tax year. SDAT can accept applications through October 31 for good cause, and later in limited cases, including up to three years late for homeowners 70 or older.
How much is the Maryland Renters' Tax Credit?
Up to $1,000. It's figured by treating 15% of the rent you paid as your share of property tax, then subtracting a percentage of household income. It's for renters 60 or older, renters who are permanently and totally disabled, and some lower-income renters under 60 with a dependent child.