Maryland Property Tax Overview

Keywords: Maryland property tax, property tax in Maryland, Maryland property tax rate

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1. Summary of Key Metrics

*Effective tax rate = median annual tax ÷ median home value.

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

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2. Maryland Property Tax Rate

The Maryland property tax rate is expressed as an effective rate of 1.00 % of property value, which is slightly higher than the national average. This places Maryland at rank #32 out of 52 states/territories in terms of effective property tax burden.

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3. Example Tax Bills

Using the statewide effective rate of 1.00 %:

These figures are illustrative and assume the statewide average rate; actual taxes may differ based on local assessment practices.

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4. Variation by County

Property tax rates in Maryland are not uniform across the state. Each of Maryland’s 23 counties (and the independent city of Baltimore) sets its own assessment ratio and tax levy. Consequently, the effective tax rate can be higher or lower than the statewide average depending on the jurisdiction. For detailed county‑level rates, consult the Maryland Department of Assessments and Taxation (SDAT) or local government websites.

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5. Comparison to the National Average

• Effective rate: Maryland 1.00 % vs. national average 0.97 %
• Relative difference: Maryland’s rate is 3.65 % higher than the national average (1.00 % ÷ 0.97 % ≈ 1.0365).

The difference is modest; however, the impact on homeowners varies with property values and local levies.

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6. Considerations for Retirees

• Tax burden: Retirees with fixed incomes may find the median annual tax of $3,989 manageable relative to the national average, but the absolute amount depends on home value and county rates.
• Exemptions: Maryland offers a Senior Property Tax Credit and a Homeowners’ Property Tax Credit for qualifying seniors, which can reduce the net tax liability.
• Assessment ratios: Some counties apply lower assessment ratios to residential properties, potentially lowering the taxable base for retirees.

These points are factual descriptions of existing programs; they do not constitute advice.

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7. Considerations for Landlords

• Revenue vs. tax: Rental property owners must account for the effective tax rate of 1.00 % when estimating operating expenses.
• Tax on investment properties: The same rate applies to owner‑occupied and investment properties; however, landlords can deduct property taxes as an expense on federal income tax returns.
• County differences: Landlords with properties in multiple counties should track each jurisdiction’s levy to avoid unexpected variations in tax bills.

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8. Frequently Asked Questions

Q1. How is the Maryland property tax calculated?
A: The tax bill is derived by multiplying the assessed value of the property (assessment ratio × market value) by the local tax levy (expressed as a rate per $100 of assessed value). The resulting amount is the annual property tax owed.

Q2. Does Maryland have a state‑wide property tax rate?
A: No. Maryland does not impose a single state‑wide rate. Instead, each county and the city of Baltimore set their own tax levies, leading to variation in the effective property tax rate across the state.

Q3. Are there any property tax relief programs for seniors?
A: Yes. Maryland provides a Senior Property Tax Credit and a Homeowners’ Property Tax Credit for eligible senior citizens, which can offset a portion of the annual tax liability. Eligibility is based on age, income, and homeownership status.

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References

• U.S. Census Bureau, American Community Survey (ACS) 5‑year estimates, 2023.
• Maryland Department of Assessments and Taxation (SDAT) – County tax levy information.

All figures reflect the most recent ACS estimates and are presented for informational purposes only.