Prince George's County, Maryland, USA
Interior Nat Harbor

Homeowner's Property Tax Credit

The Homeowners' Property Tax Credit is administered by the Maryland Department of Assessments and Taxation (SDAT). We are providing this information because the credit may directly affect your property tax bill and could reduce the amount of property taxes you owe.  The program helps homeowners by limiting the amount of property taxes they must pay based on their household income.  If you qualify, the credit is applied directly to your property tax bill. 

Eligibility Requirements

To qualify for the Homeowners' Property Tax Credit, you must:

  • Own or have a legal interest in the property. 
  • Occupy the property as your principal residence for at least six months of the year, including July 1 (unless you are a recent homebuyer or unable to do so due to health or special care). 
  • Have a net worth of less than $200,000, excluding: 
    • The value of your home. 
    • Qualified retirement savings and Individual Retirement Accounts (IRAs). 
  • Have a combined gross household income of $60,000 or less. 

Household Income

For this program, household income includes the total gross income of:

  • The homeowner. 
  • The homeowner's spouse. 
  • All other household occupants, unless they are: 
    • Dependents, or 
    • Paying rent or room and board. 

Income from all sources must be reported, including income that is not taxable for federal or state income tax purposes, such as:

  • Social Security benefits 
  • Railroad Retirement benefits 
  • Retirement income 
  • Pension income 
  • Other taxable and nontaxable income 

How the Credit Is Calculated

The credit is based on the amount by which your property taxes exceed a percentage of your combined gross household income.

The calculation uses the following income percentages:

  • 0% of the first $8,000 
  • 4% of the next $4,000 
  • 6.5% of the next $4,000 
  • 9% of all income over $16,000 

The credit applies only to:

  • The first $300,000 of assessed value. 
  • The portion of the property used as your principal residence. 

The credit does not apply to:

  • Water and sewer charges. 
  • Metropolitan district charges. 
  • Excess acreage beyond the home's lot or curtilage. 
  • Portions of the property used for commercial or business purposes. 

How to Apply

Applications should be submitted directly to the Maryland Department of Assessments and Taxation (SDAT).

  • April 15: Apply by this date to have the credit appear on your annual property tax bill. 
  • October 1: Final deadline to apply for the current tax year. If approved after April 15, you will receive either: 
    • A revised tax bill, or 
    • A refund if your taxes have already been paid. 

Eligibility for Heirs

Certain heirs who have not yet received legal title to a property may qualify for the Homeowners' Property Tax Credit for up to three taxable years while the title transfer is being completed.

Applicants must meet all program eligibility requirements and provide documentation, including:

  • The deceased homeowner's will, trust, or other legal instrument. 
  • A copy of the death certificate. 
  • Documentation showing the applicant's relationship to the deceased homeowner. 
  • The names and addresses of all heirs. 

If Your Application Is Denied

If you are determined to be ineligible, SDAT will notify you in writing. The notice will explain:

  • Why the application was denied. 
  • How to submit additional information. 
  • How to appeal the decision to the local Property Tax Assessment Appeals Board.  

Contact SDAT

For questions about the Homeowners' Property Tax Credit, contact the:

Maryland Department of Assessments and Taxation (SDAT)

Email: sdat.homeowners@maryland.gov

Website:  https://dat.maryland.gov/Pages/Tax-Credit-Programs.aspx

Phone: 410-767-5900

Address:
700 E. Pratt Street, Suite 2700
Baltimore, MD 21202-6377

File online at: Maryland OneStop

2026 Homeowner's Tax Credit Application (PDF)

2026 Homeowner's Tax Credit Application (PDF) - Español