Baltimore City Homeowners: Apply for Homestead Tax Credit before December 31 Deadline

Five years ago, the Maryland General Assembly required that all Maryland homeowners apply one time only to continue receiving the State’s Homestead Tax Credit. This action was taken to prevent recipients from illegally claiming investment properties or second homes as eligible for this credit.

The purpose of the Homestead Tax Credit Program is to help homeowners afford annual property tax increases on their owner-occupied homes. The State caps annual assessment increases at 10 percent as applied to annual property taxes. Baltimore City caps at 4 percent. This credit protects homeowners, regardless of age, income, or property value, from annually spiking tax bills.

The State Department of Assessments and Taxation (SDAT), which oversees this program, has mailed at least two application notices to all current Homestead recipients. However, as of August 1, 2012, 65 percent of current Baltimore City recipients have not yet applied. Applications must be postmarked or received by or before December 31, 2012, or homeowners will lose this Homestead credit for the tax year beginning on July 1, 2013.

Homestead applications are available only by contacting SDAT’s Homestead line at 410-767-2165 or by email at hcredit@dat.state.md.us.