Maryland Property Tax Exemptions 2026: Homestead, Senior, Veteran & Disability

Maryland (MD) homeowners have several ways to legally reduce their property tax bill — homestead reductions, senior credits, veteran exemptions, and disability programs. This page lists every Maryland property tax exemption available in 2026, who qualifies, dollar amounts, and how to apply.

All Maryland property tax exemptions at a glance

Estimated savings use Maryland's effective property tax rate of 1.00% on the median home value of $397,700. Your actual savings depend on your county assessor's millage and how exemptions are applied to assessed (vs. market) value.

Homestead Tax Credit (Assessment Cap)

The Homestead Tax Credit limits the year-over-year increase in taxable assessed value for your principal residence. It does not cap the market value assessment — only the portion subject to tax.

State cap: 10%

Maryland state law caps the state-portion taxable assessment increase at 10 percent per year. This cap applies to the property's share of the state property tax (a modest $0.112 per $100 of assessed value statewide for fiscal year 2026).

County and municipal caps

Every county and incorporated municipality sets its own cap, at or below 10 percent. Notable county caps for 2026:

Who qualifies and how to apply

Maryland homeowners must file a one-time Homestead Tax Credit application with SDAT to establish eligibility. Without the application on file, you do not receive the credit — even if you have owned and occupied the property for decades.

Homeowners' Property Tax Credit (Income-Based)

Distinct from the Homestead Credit, the Homeowners' Property Tax Credit (HTC) is an income-based program. It caps the property tax owed at a percentage of household income — the state pays the difference directly to the county.

How it works

HTC uses a sliding scale. The credit amount equals the property tax owed minus a percentage of gross household income set by statute. The percentage starts at 0 for the lowest-income applicants and rises with income.

2026 eligibility (applications due October 1, 2026)

• Net worth below $200,000 excluding the primary residence and retirement accounts
• Combined gross household income of $60,000 or less (phase-out begins near this level)
• Applicant must have owned and occupied the home for at least the preceding six months
• Home's assessed value on which credit is calculated is capped at $300,000

The exact credit amount depends on income and actual tax paid. A senior with $20,000 annual income in a home with $4,000 property tax can see the state pay the majority of the tax. Eligible homeowners who do not apply forfeit the credit for that year with no retroactive claim.

Prince George's County Senior Credit (20%)

On top of the state HTC, Prince George's County offers an additional 20 percent county-portion tax credit for homeowners age 65+ who meet income limits. Similar county-level senior credits exist in Montgomery, Howard, Anne Arundel, and other counties — each with its own rules. Check your county's Department of Finance for specifics.

Disabled Veteran and Surviving Spouse Exemptions

Maryland exempts the entire property tax liability on the principal residence of:

• Veterans determined to have a 100 percent permanent and total service-connected disability by the U.S. Department of Veterans Affairs
• Surviving spouses of such veterans (as long as unremarried and continuing to occupy the home)
• Surviving spouses of U.S. Armed Forces members killed in the line of duty

The exemption is administered by SDAT. File form AT3-45 with your local SDAT office along with proof of disability status or surviving-spouse status. Once granted, the exemption continues until status changes.

Frequently Asked Questions

What is Maryland's Homestead Tax Credit?

The Homestead Tax Credit caps the year-over-year increase in taxable assessed value for your principal residence. The state cap is 10 percent; each county and municipality sets its own cap at or below 10 percent (Baltimore City 4%, Prince George's County 3%, Anne Arundel 2%, Montgomery 10%). You must file a one-time application with SDAT to receive the credit.

How do I qualify for the Maryland Homeowners' Property Tax Credit?

Combined gross household income of $60,000 or less, net worth under $200,000 (excluding primary residence and retirement accounts), and ownership/occupancy of the home for at least six months preceding the application. The credit is sliding-scale: the state pays property tax in excess of a percentage of gross household income. Applications for 2026 are due October 1, 2026, through SDAT via Maryland OneStop.

Does Maryland have a senior property tax exemption?

Maryland does not have a statewide senior exemption, but several counties offer a local senior tax credit. Prince George's County provides a 20 percent county-portion tax credit for homeowners age 65+ meeting income limits. Similar programs exist in Montgomery, Howard, Anne Arundel, Baltimore, and other counties. Disabled veterans with 100 percent service-connected disability qualify for a complete property tax exemption on their principal residence.