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Deadline Approaching for Maryland Homeowners to Claim Homestead Tax Credit

Christopher A. Davis
James W. Dawson
Jeffrey A. Markowitz
Miles & Stockbridge P.C. - Baltimore Office

December 26, 2012

Previously published on December 2012

To help homeowners deal with large assessment increases on their principal residence, Maryland state law established the Homestead Property Tax Credit (the “Homestead Credit”). The Homestead Credit limits the increase in taxable assessments to 10% or less each year. 

Historically, eligibility for the Homestead Credit was automatic, and homeowners did not have to take any action to receive the benefits of the Homestead Credit.  However, to prevent improper granting of this credit on rented or multiple properties of a single owner, a law was enacted in 2007 that requires all homeowners to submit a one-time application to establish eligibility for the credit. Homeowners who have not filed a Homestead Eligibility Application have until have until December 31, 2012 to submit an application to continue being eligible for the Homestead Credit. If a homeowner has not applied for the Homestead Credit by December 31, 2012, they will lose any homestead benefits that they currently receive.

The tax credit will generally be granted if the following conditions are met during the previous tax year:

  • The dwelling is the owner’s principal residence and the owner has lived in it for at least six months of the year, including July 1 of the year for which the credit is applicable, unless the owner was temporarily unable to do so by reason of illness or need of special care.
  • The property was not transferred to new ownership.
  • There was no change in the zoning classification requested by the homeowner resulting in an increase value of the property.
  • A substantial change did not occur in the use of the property.
  • The previous assessment was not clearly erroneous.

An owner can receive a credit only on his or her principal residence.

For questions about the Homestead Tax Credit, visit the Maryland State Department of Assessments and Taxation website at http://www.dat.state.md.us/sdatweb/homestead.html, call 1-866-650-8783, or email homestead@dat.state.md.us.


The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.

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