State Renters' Tax Credit with Local Option (Circuit Breaker)

State

Maryland

Year

2019

Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Benefit Type

Circuit Breaker

Benefit

The program provides a relief equal to the amount of assumed property taxes that exceed a percentage of income. The plan assumes that 15% of your occupancy rent goes toward the payment of property taxes. The property tax relief a renter may receive is based upon a comparison of the assumed real property tax in the yearly rent minus a percentage of the household income 0% of the first $4,000 of income 2.5% of the next $4,000 of income 5.5% of all income in excess of $8,000 Total relief cannot exceed $1,000. Renters have until September 1 annually to apply for the credit.

How is Benefit Disbursed

Direct payment to taxpayer

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Disability

Income Ceiling

Renter

Wealth Limit

Description of Eligibility Criteria

Individual must be at least 60 years old or be totally disabled and qualify for disability benefits under the Social Security Act, the Railroad Retirement Act, any federal act for members of the United States Armed Forces, or any federal retirement system. For individuals over 60, or 100% disabled, the renters tax credit at its lowest threshold is offered for individuals making between $1 - $10,000 annually in total gross income and paying in excess of $117 monthly for rent. The highest threshold for this benefit is for individuals with incomes between $69,000 - $73,000 in 2017 total gross income for rent paid in excess of $2,000 monthly. Also eligible is an individual under the age of 60 with gross income below the federal poverty threshold and have one or more dependent children living with the renter. The property must be a principal residence and the applicant must not receive federal or state rent subsidies. The income ceiling for an applicant and one dependent is $16,543 and up to $49,721 for a household of 9 people including the applicant. An applicant's combined net worth cannot exceed $200,000. Income is defined as the following: Credits are calculated according to total income, meaning all combined gross household income before deductions. This includes income from all sources, whether or not taxable for federal and state income tax purposes. It also includes Social Security as well as all other retirement benefits.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No 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 issues a refund check directly to the applicant.

Record ID

MD103_RR19

Footnotes

The credits are calculated based on the household combined income, which is defined as combined gross household income before deductions. This includes income from all sources, whether or not taxable for federal and state income tax purposes. It also includes Social Security as well as all other retirement benefits of the tax year. Prince George's county is authorized to provide additional relief to renters.

Sources

Md. Code, Tax-Property § 9-102 (in effect for 2019)
Maryland Department of Assessments and Taxation Renters' Tax Credit Form RTC-60 2018
[https://dat.maryland.gov/SDAT%20Forms/RTC-1.pdf Accessed 12/19/2020]
View Archived Source

Maryland State Department of Assessments and Taxation, Renters' Tax Credits
[http://dat.maryland.gov/realproperty/Pages/Renters%27-Tax-Credits.aspx accessed 12/29/2020]
View Archived Source

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