Maryland Real Estate Tax: Top 5 Insights

As a homeowner in Maryland, one of your most significant financial obligations is paying your Maryland real estate taxes. These taxes help fund local government services, such as schools, roads, and public safety. If you’re new to owning a home in Maryland, you may be wondering when exactly you need to pay your real estate taxes, how much you’ll owe, and if any exemptions or credits are available. In this article, we’ll cover five key things you need to know about Maryland real estate taxes.

When are Maryland Real Estate Taxes Due?

Maryland real estate taxes are typically due twice a year, on September 30th and December 31st. However, it’s important to note that some counties or municipalities may have different due dates. You can confirm your specific due date by checking with your local government office.

If you pay your real estate taxes through an escrow account with your mortgage lender, they will handle the payments. Otherwise, you can pay your real estate taxes directly to your local government office or online through their website.

Maryland State Department of Assessments and Taxation – Real Property Data Search

What Happens if You Don’t Pay Maryland Real Estate Taxes?

If you fail to pay your real estate taxes on time, you may face penalties and interest charges. In Maryland, interest accrues on unpaid real estate taxes at a rate of 1.5% per month until the taxes are paid in full. Additionally, the local government may impose a monthly penalty of up to 1% until the taxes are paid.

Suppose you continue not paying your real estate taxes. In that case, the local government can take legal action against you, including placing a tax lien on your property or even foreclosing your home. Therefore, it’s important to prioritize paying your real estate taxes on time to avoid any unnecessary financial burdens.

Are There Any Tax Exemptions or Credits for Maryland Homeowners?

Maryland offers a few tax exemptions and credits for homeowners that may help reduce their real estate tax burden. For example, the Homestead Tax Credit provides a property tax credit to homeowners who occupy their principal residence in Maryland.

Maryland Homeowners’ Property Tax Credit Program

Other exemptions include the “Older Citizen Property Tax Credit”, which provides a credit for homeowners over 65, and the Disabled Veteran Property Tax Exemption, which provides a complete exemption from property taxes for qualifying disabled veterans.

To apply for these tax exemptions or credits, you must complete an application with your local government office and provide any necessary documentation.

What Factors Affect the Amount of The Real Estate Taxes?

The amount of real estate taxes you owe in Maryland is based on the assessed value of your property, which your local government determines. The assessed value is calculated by looking at factors such as the size and location of your property, the value of similar properties in your area, and any improvements you’ve made to your home.

In addition to the assessed value of your property, the tax rate set by your local government also affects the amount of real estate taxes you’ll owe. This rate can vary depending on the county or municipality you live in.

What Should You Do If You’re Having Trouble Paying Your Real Estate Taxes?

If you’re having trouble paying your Maryland real estate taxes, it’s essential to contact your local government office as soon as possible. They may be able to work with you to set up a payment plan or provide other resources to help you get back on track.

Additionally, some organizations and programs may be able to provide financial assistance to homeowners struggling to pay their real estate taxes. For example, the Maryland Homeowners’ Property Tax Credit Program assists low-income homeowners with difficulty paying their property taxes.

Maryland Tax Property Assessment Appeals Board

Conclusion

If you’re a homeowner in Maryland, it’s crucial to understand the ins and outs of real estate taxes. By knowing when your taxes are due, what factors affect the amount you owe, and what exemptions or credits may be available, you can make informed financial decisions and avoid unnecessary fees or penalties.

If you have any questions or concerns about your Maryland real estate taxes, don’t hesitate to contact your local government office for assistance. If you’re struggling to pay your taxes, consider exploring resources like the Maryland Homeowners’ Property Tax Credit Program.

Remember, staying on top of your real estate taxes is essential to homeownership. By prioritizing this responsibility, you can ensure that you can enjoy all the benefits of owning a home in Maryland.