A Maryland property tax bill is the state’s assessment of the home multiplied by the combined state, county and, inside a town, municipal rate. For the 2026-27 tax year, the combined rate in the jurisdictions below runs from about $0.78 per $100 of assessed value in Montgomery County to $2.36 per $100 in Baltimore City.
That spread is why two homes at the same price can carry very different monthly payments. When the tax is escrowed into the mortgage, it changes how much house a budget can carry. This guide lays out the 2026-27 rates, shows how the bill is built, and walks through the two credits a buyer should know about before closing.
Key Takeaways
- Your bill equals the assessment times the state, county and any municipal rate (Maryland SDAT).
- For 2026-27, the state rate is $0.1120 per $100 everywhere, and county rates vary widely.
- The assessment is the state’s estimate of market value, not your purchase price.
- A seller’s homestead credit doesn’t carry over to you after a sale (Md. Code, Tax-Property §9-105).
How is a Maryland property tax bill calculated?
Your annual bill is the assessment multiplied by the tax rate of each jurisdiction that taxes the home: the state, the county or Baltimore City, and a municipality if the home is inside one (Maryland SDAT, Homeowner’s Guide). Each government sets its own rate. The state Department of Assessments and Taxation (SDAT) sets the assessment.
Rates are quoted per $100 of assessed value. SDAT’s own worked example uses a rate of “$1.022 per $100 of assessed value” (Maryland SDAT, Questions and Answers About Real Property Assessments). So the formula for a quick estimate is simple:
Annual tax = (assessed value ÷ 100) × combined rate
Timing matters too. Maryland’s 23 counties and Baltimore City, along with the state’s 155 incorporated municipalities, issue bills each July or August, and those bills cover the upcoming fiscal year, effective July 1 (Maryland SDAT, Homeowner’s Guide). A buyer who closes in October is stepping into a tax year that started in July. Prorations at settlement divide that year’s tax between buyer and seller, and our Maryland seller net sheet guide shows how that credit is worked out.
This annual bill is separate from the one-time transfer and recordation taxes paid at closing. Those are covered in our Maryland transfer tax guide.
What are the 2026-27 property tax rates by county?
For bills effective July 1, 2026, the state rate is $0.1120 per $100 in every jurisdiction, and the local rate does most of the work (Maryland SDAT, 2026-2027 Tax Rates & Homestead Credit Caps). The table below adds the state rate to each county or city rate. The homestead cap column is the local limit on yearly increases in taxable assessment, explained further down.
| Jurisdiction | Local rate per $100 | State rate per $100 | Combined per $100 | Local homestead cap |
|---|---|---|---|---|
| Anne Arundel County | $0.9680 | $0.1120 | $1.0800 | 2% |
| City of Annapolis* | $1.3150 | $0.1120 | $1.4270 | 10% (city) |
| Baltimore City | $2.2480 | $0.1120 | $2.3600 | 4% |
| Baltimore County | $1.1000 | $0.1120 | $1.2120 | 4% |
| Howard County | $1.0440 | $0.1120 | $1.1560 | 5% |
| Harford County | $0.9779 | $0.1120 | $1.0899 | 5% |
| Carroll County | $1.0180 | $0.1120 | $1.1300 | 5% |
| Frederick County | $1.1100 | $0.1120 | $1.2220 | 5% |
| Montgomery County | $0.6706 | $0.1120 | $0.7826 | 10% |
| Prince George’s County | $1.0000 | $0.1120 | $1.1120 | 3% |
Source: Maryland SDAT, 2026-2027 Tax Rates & Homestead Credit Caps (July 2026). Combined column is the sum of the published rates. *Annapolis local rate = city $0.7380 + county portion $0.5770. SDAT’s full table lists every county and incorporated town.
Three cautions before you plug these in. First, a home inside an incorporated town or city adds that municipality’s rate and can use a different county portion, as Annapolis does. Check the town’s own row rather than the county row. Second, this table shows only the county and state rates SDAT publishes; a bill can also carry other local charges, so confirm the full amount with the county. Third, SDAT publishes the table as a courtesy and asks readers to contact the local government to verify any figure before relying on it (Maryland SDAT, 2026-2027 Tax Rates & Homestead Credit Caps).
If you’re comparing areas, our Towson guide, Timonium and Lutherville guide and Catonsville guide cover what else separates parts of Baltimore County.
What would the bill be on a $400,000 assessment?
On an assessment of $400,000, the 2026-27 combined rates produce annual bills from about $3,130 in Montgomery County to $9,440 in Baltimore City. These are illustrations built from SDAT’s published rates, not quotes for any real home.
| Jurisdiction | Combined rate per $100 | Illustrative annual tax on a $400,000 assessment |
|---|---|---|
| Montgomery County | $0.7826 | $3,130 |
| Anne Arundel County | $1.0800 | $4,320 |
| Howard County | $1.1560 | $4,624 |
| Baltimore County | $1.2120 | $4,848 |
| City of Annapolis | $1.4270 | $5,708 |
| Baltimore City | $2.3600 | $9,440 |
Math: ($400,000 ÷ 100) × combined rate. Assumes no credits. Rounded to the dollar.
Spread over twelve escrow payments, the gap between the first and last rows is more than $500 a month. That’s real money in a mortgage qualification. Ask your lender to run the payment with the actual tax figure for the specific address, not a statewide average.
Why isn’t your purchase price the number on the bill?
The bill uses SDAT’s assessment, which is the state’s “estimate of the current market value of your property,” not the price you paid (Maryland SDAT, Questions and Answers About Real Property Assessments). The two can differ in either direction, especially in a market that has moved since the last reassessment.
Maryland reassesses each property once every three years. Owners hear about a change in late December, and roughly a third of accounts are reassessed each year (Maryland SDAT, Homeowner’s Guide). When an assessment rises, the increase is phased in equally over three years, so the full jump isn’t taxed in a single year (Maryland SDAT, Questions and Answers).
For a buyer, that means two things. The current assessment on a home you’re considering may be lower than your offer price, and it may be partway through a phase-in. Look it up before you budget. SDAT’s Real Property Data Search lets anyone pull a property’s record by choosing the county and searching by street address, account number, map and parcel, or recent sales.
How does the Homestead Tax Credit limit increases?
The Homestead Property Tax Credit limits how much a principal residence’s taxable assessment can rise each year, and every county and municipality must set that limit at 10 percent or less (Maryland SDAT, Tax Credit Programs). The local caps for 2026-27 are in the rate table above: 2 percent in Anne Arundel County, 3 percent in Prince George’s, 4 percent in Baltimore City and Baltimore County, 5 percent in Howard, Harford, Carroll and Frederick, and 10 percent in Montgomery and for the City of Annapolis’s own portion. If you’re looking in Howard County, our Howard County neighborhood guide covers the area. The state’s own cap is 10 percent (Maryland SDAT, 2026-2027 Tax Rates & Homestead Credit Caps).
It’s a cap on the taxable assessment, not on the bill. SDAT’s example: with a 4 percent cap, the local bill rises no more than 4 percent over the prior year only if the county keeps the same tax rate (Maryland SDAT, Questions and Answers).
Why buyers shouldn’t budget from the seller’s bill
This rule matters at closing. Under Maryland law, the credit isn’t granted for a taxable year if, during the previous taxable year, the home “was transferred for consideration to new ownership” (Md. Code, Tax-Property §9-105). In plain terms, a long-time owner’s capped assessment doesn’t pass to you. If the seller’s taxable assessment sits well below the full assessment, your bill can be higher than theirs.
So don’t budget from the seller’s last bill. Ask your agent or title company to show the tax figure without the seller’s credit, then plan your escrow around that number.
Once you own the home as your principal residence, you can apply for the credit yourself. SDAT mails new purchasers a homestead application once the new deed is recorded (Maryland SDAT, Homestead Tax Credit FAQ). Watch for it and send it back.
Could you qualify for the Homeowners’ Property Tax Credit?
The Homeowners’ Property Tax Credit lowers the bill when property taxes exceed a fixed percentage of the owner’s gross income (Maryland SDAT, Tax Credit Programs).
To be eligible, according to SDAT’s program page:
- The home must be your principal residence, where you live at least six months of the year including July 1, unless you’re a recent home purchaser.
- Your net worth, not counting the home and qualified retirement savings, must be under $200,000.
- Combined gross household income can’t exceed $60,000.
The credit isn’t automatic. The application deadline is October 1 each year, and SDAT notes that applying by April 15 lets any credit come off the initial July bill. Qualified buyers can also apply before they own the home: SDAT asks for the application at least 30 days before the expected settlement date so any credit due can be applied at settlement (Maryland SDAT, Homeowners’ Property Tax Credit Program).
If your situation is close to the limits, a tax professional can confirm whether you qualify.
When are Maryland property taxes due?
Under Maryland’s semiannual payment schedule, the first installment is due July 1 and can be paid without interest through September 30, and the second is due December 1 and can be paid without interest, apart from a service charge, through December 31 (Md. Code, Tax-Property §10-204.3).
If your lender escrows taxes, you won’t write those checks directly. When taxes are paid through an escrow account, the law has the servicer pay in semiannual installments unless the owner or borrower directs annual payment in writing (same statute). Your lender collects a monthly slice in escrow and pays the county on that schedule.
That’s also why the tax figure matters when you budget. The escrowed tax becomes part of your monthly payment. Our buyer financing overview walks through the rest of that payment.
How to estimate the tax on a home you’re considering
You can estimate the tax in five steps, using only public records.
- Find the property record. Open SDAT’s Real Property Data Search, choose the county and search by address.
- Note the assessment and any phase-in. Use the assessment SDAT shows for the current year, and check whether a reassessment is still phasing in.
- Pick the right row. Use the county row, or the town’s row if the home is inside an incorporated municipality such as Annapolis.
- Do the math. Divide the assessment by 100 and multiply by the combined rate.
- Assume no homestead credit for now. Under §9-105 the seller’s credit doesn’t carry over, so budget without it until you’ve applied for your own.
Then verify. SDAT itself recommends confirming any rate with the local government before relying on it, and your county or city finance office can confirm the final figure.
Talk through the numbers before you write an offer
A property tax estimate is one of the easiest numbers to get wrong and one of the easiest to check. If you’re weighing homes in different counties or towns, contact Next Step Realty to talk through the homes on your list.
Frequently Asked Questions
What is the property tax rate in Anne Arundel County for 2026-27?
For the 2026-27 tax year, Anne Arundel County’s rate is $0.9680 per $100 of assessed value, plus the state rate of $0.1120, for a combined $1.0800 per $100 outside incorporated towns. Homes inside the City of Annapolis pay a different combination: $0.7380 city, $0.5770 county and $0.1120 state, or $1.4270 per $100.
How often does Maryland reassess property?
Maryland reassesses each property once every three years, and owners are notified of any change in late December. About a third of accounts are reassessed each year. When an assessment rises, the increase is phased in equally over three years, so the full increase isn’t taxed in a single year.
Does the homestead tax credit transfer to a new owner in Maryland?
No. Under Maryland Tax-Property §9-105, the homestead credit isn’t granted for a taxable year if the home was transferred for consideration (sold) to new ownership during the previous taxable year. A new owner who lives in the home as a principal residence can apply for the credit, and SDAT mails new purchasers an application once the deed is recorded.
When are property taxes due in Maryland?
Under Maryland’s semiannual schedule, the first half is due July 1 and can be paid without interest through September 30. The second half is due December 1 and can be paid without interest, apart from a service charge, through December 31. If you have a mortgage escrow account, the servicer usually pays these installments for you.
Is Baltimore City’s property tax rate higher than Baltimore County’s?
Yes. For 2026-27, Baltimore City’s rate is $2.2480 per $100 and Baltimore County’s is $1.1000 per $100, each plus the state’s $0.1120. On a $400,000 assessment, that works out to about $9,440 a year in the city and $4,848 in the county, before any credits.
Sources
- Maryland State Department of Assessments and Taxation, 2026-2027 Tax Rates & Homestead Credit Caps (July 2026), retrieved 2026-10-05, https://dat.maryland.gov/SiteAssets/Pages/Tax-Rates/Tax%20Rates%202026-2027%20-%20Tax%20Table%20%26%20Homestead%20Credit%20Caps_July%202026_0926-A.pdf
- Maryland State Department of Assessments and Taxation, Homeowner’s Guide, retrieved 2026-10-05, https://dat.maryland.gov/realproperty/Pages/HomeOwners-Guide.aspx
- Maryland State Department of Assessments and Taxation, Questions and Answers About Real Property Assessments, retrieved 2026-10-05, https://dat.maryland.gov/realproperty/Pages/Questions-and-Answers-About-Real-Property-Assessments.aspx
- Maryland State Department of Assessments and Taxation, Tax Credit Programs, retrieved 2026-10-05, https://dat.maryland.gov/Pages/Tax-Credit-Programs.aspx
- Maryland State Department of Assessments and Taxation, Homestead Tax Credit FAQ, retrieved 2026-10-05, https://dat.maryland.gov/realproperty/Pages/FAQ-Homestead-Tax-Credit.aspx
- Maryland State Department of Assessments and Taxation, Homeowners’ Property Tax Credit Program, retrieved 2026-10-05, https://dat.maryland.gov/realproperty/Pages/Homeowners’-Property-Tax-Credit-Program.aspx
- Maryland State Department of Assessments and Taxation, Real Property Data Search, retrieved 2026-10-05, https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx
- Maryland Code, Tax-Property §9-105 (Homestead property tax credit), retrieved 2026-10-05, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp§ion=9-105
- Maryland Code, Tax-Property §10-204.3 (Semiannual payment schedule), retrieved 2026-10-05, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp§ion=10-204.3
Rates and rules cited here were retrieved on October 5, 2026 and apply to the 2026-27 tax year. This article is general information, not tax or legal advice. Confirm current figures with your county or city finance office, and consult a tax professional about your situation.
