Property taxes in Maryland are assessed and collected at the local level — primarily by counties and municipalities — with rates varying significantly depending on where your home is located. The statewide average effective rate for 2025is 1.09%, meaning a homeowner with a $406,100 median-value home typically pays around $4,427 per year in property taxes. For a monthly perspective, that works out to roughly $369/month — a line item that should factor into every home purchase decision in Maryland.
Maryland uses a 100% assessment ratio for primary residential properties. Most states with a 100% ratio assess property at full market value — what the county believes your home would sell for — and apply a millage rate directly to that figure.
Available Exemptions in Maryland
Maryland Homestead Tax Credit: limits annual assessment increases to 10% (or lower if the county sets a lower cap). Protects existing homeowners from rapid assessment jumps. Not a dollar exemption, but a growth cap.
Homeowners' Tax Credit: based on income (up to $60,000 gross household income). Limits the property tax on your primary residence relative to your income.
100% permanently disabled veterans and surviving spouses: full exemption from state and county property tax on primary residence.
What Makes Maryland's Property Tax System Unique
Maryland has both state and county property taxes. Montgomery County (DC suburb) has very high values. The Homestead Tax Credit (10% annual assessment cap) is automatically applied — but you must apply for it when you purchase a home. Baltimore City has a very high tax rate (~2.25% effective).
When Are Maryland Property Taxes Due?
Maryland property taxes are paid on a semi-annual (twice per year) basis. Due dates: September 30 and December 31 (varies by county). Missing a due date typically results in penalty interest (often 1–2% per month) and eventually tax liens, so it is important to calendar these dates well in advance — especially if you have a mortgage and your lender handles property tax through escrow (in which case they pay on your behalf from your escrow account).
How to Appeal Your Property Tax Assessment in Maryland
If you believe your property has been over-assessed — which is surprisingly common, especially after rapid market changes — you have the right to appeal. File with the Maryland Tax Court or Property Tax Assessment Appeal Boards within 30 days of your assessment notice.
To build a strong appeal, gather comparable sales (homes similar in size, age, and condition that sold recently for less than your assessed value), photos documenting property defects, and any independent appraisals you have. Many homeowners who appeal see their assessments reduced — and some jurisdictions allow free informal hearings before a formal appeal is required.
Property Tax Rates by Major Maryland Cities
Within Maryland, effective property tax rates vary significantly by city and county. Here are the major areas and what to expect:
- Baltimore— rates in this area may differ from the 1.09% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Rockville— rates in this area may differ from the 1.09% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Frederick— rates in this area may differ from the 1.09% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Gaithersburg— rates in this area may differ from the 1.09% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Annapolis— rates in this area may differ from the 1.09% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
Note: County rates within Maryland can range from well below to well above the statewide average. Always verify the current mill rate with your county assessor's office.
Pro Tips for Maryland Property Owners
- Apply for every exemption you qualify for — many homeowners leave money on the table by not filing for the homestead or senior exemption. Applications are typically annual or one-time, and deadlines are firm.
- Review your assessment notice every year. If the county's estimate of your home's market value seems too high relative to what similar homes are actually selling for, appeal it. Even a 10% reduction on a $400,000 assessment saves $400–$700/year at typical Maryland rates.
- If you have a mortgage, confirm with your lender whether property taxes are paid via an escrow account. If so, ensure your escrow balance is adequate — under-funded escrow leads to an escrow shortage and a sudden increase in your monthly mortgage payment.
- Pay early if your state offers discounts. Some states (like Florida) give 1–4% discounts for early payment. On a $5,000 tax bill, a 4% early-payment discount saves $200 — for essentially zero work.
- Property taxes are generally deductible on your federal income tax return as part of the SALT deduction (state and local taxes), subject to the $10,000 cap introduced by the Tax Cuts and Jobs Act. For high-tax states, this cap is often a binding constraint.