In Maryland, if you meet the requirements and file an application, you may receive a discount on your real property taxes.
In this article I will discuss the minimum requirements to qualify for the Maryland Homestead Tax Credit, how to fill out an application and why the Tax Credit is such a great deal for Maryland homeowners.
What are the requirements?
1) Live in the property as your principal residence;
2) Have been in the property as your principal residence for at least a year; and
3) Submit an application to the Maryland State Department of Assessment and Taxation.
How do I get an application?
When you purchase your property, a document is typically filed with the deed stating you will be living in the property as your principal residence – each County has its own form.
Once the Assessor’s Office for the County in which you purchased updates the assessor’s records to reflect you as the new owner, an Application for Homestead Tax Credit Eligibility is sent to your property.
You can either fill out the application online or send a hard copy in the mail. If you decide to file online, you will need to have your letter in front of you, as there will be an 8-digit code you will need to enter in order to fill out the application.
If you do not get an application via mail, you can print one off of the Maryland Department of Assessment and Taxation website, fill it out and mail it in.
When should I look for the application to come to me?
It usually takes approximately 3 months for the local assessment office to update the records, so you should receive an application shortly thereafter.
What if I already own my home and don’t know if I am receiving the homestead credit?
You can check in with your local County assessment office. Most of the counties have the property assessments online. If you have the homestead credit, it will appear on your tax bill.
If you find you do not have the homestead credit, then you will need to print an application out from the website and mail it in as instructed on the application.
Why bother to file the application?
Not only will you receive a credit on your real property taxes, but the tax assessment will be capped. This means that your taxes could stay lower for longer and possibly save you hundreds of dollars during your ownership. The caps on the assessed values vary by County.
Once I have filed the application, do I need to reapply every year?
No, unlike other tax exemptions/credits, this is a one-time application.