Variations in Receipt of Benefit
Benefit Varies with Income
The credit is the amount that property tax exceeds a given percentage which is based on the applicant's preceding year income. Only property taxes on the first $300,000 of assessed value are eligible for the credit. The threshold is 0% for incomes between $0 and $8,000. The required threshold is 4% for the next $4,000 of incomes ($8,001 and $12,000), 6.5% for the next $4,000 of incomes ($12,001 and $16,000), and 9% for incomes over $16,000 The benefit is based on the previous year's income. Applications must be filed annually by 1 September in order to receive the benefit. If the benefit is filed prior to 1 May, the credit will appear as a reduction on the July property tax bill and for this reason, applicants are encouraged to apply by the 1 May. Some counties and municipalities have supplementary credit programs.
How is Benefit Disbursed
Credit to the property tax bill
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for this program.
Description of Eligibility Criteria
An applicant's combined household income cannot exceed $60,000. Only the first $300,000 of assessed value is considered when calculating the credit. Applicants must have a maximum net worth of no more than $200,000, which excludes the residence, IRAs, and other retirement accounts. The applicant must have lived in the dwelling for at least 6 months of the year, including 1 July of the year for which the tax credit is applicable.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
Local option regarding program features
State Funding for Local Tax Loss
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss
The State reimburses local governments for the amount of credit granted to the individual, or if the tax bill has already been paid, the state issues a refund to the individual.
Md. Code, Tax Property §9-215 ~ 9-215.1 (in effect for 2018)
View Archived Source
Maryland Department of Assessments and Taxation, 2018 Homeowners’ Property Tax Credit Application (based on 2017 income) [http://dat.maryland.gov/SDAT%20Forms/HTC-60.pdf Accessed on 10/30/2018]
View Archived Source
Maryland Department of Assessments and Taxation: Homeowners' Property Tax Credit Program Website (2018) [https://dat.maryland.gov/realproperty/Pages/Homeowners'-Property-Tax-Credit-Program.aspx accessed 10/30/2018] View Archived Source