The Homeowners' Tax Credit is not automatically granted and each person must apply and disclose his or her income. Typically the deadline to apply is September 1, but in 2019 we have extended that deadline through October 1 due to our new online filing portal. However, it is to your advantage to submit the application by May 1 so that any credit due you can be deducted beforehand from the initial July tax bill.
Once completed, applications should be mailed to:
State Department of Assessments & TaxationHomeowners' Tax Credit ProgramP.O. Box 49005Baltimore, MD. 21297
Please do not email any tax credit applications to the Department containing personal information, such as social security numbers and/or income tax returns. Instead, please mail your completed application and supporting documents to the Department, so your personal information remains confidential.
Your Application Is Confidential
Persons filing for the Homeowners' Tax Credit Program are required to submit copies of their prior year's federal income tax returns and to provide the Department with permission to verify the amount of income reported with other State and Federal agencies. The sole purpose for which this information is sought is to determine your eligibility for a tax credit. All income-related information supplied by the homeowner on the application form is held with the strictest confidentiality. It is unlawful for any officer or employee of the State or any political subdivision to divulge any particulars set forth in the application or any tax return filed, except in accordance with judicial or legislative order. This information is available to officers of the State in their official capacity and to taxing officials of any state, territory, or the federal government, as provided by statute.
Prospective Home Buyers
Qualified home purchasers should apply in advance for the Homeowners' Tax Credit before acquiring title to the property. The purpose of this program is to help reduce the amount of monies needed at the time of settlement. You must apply at least 30 days before your expected settlement date to receive any credit due at the time of settlement. For more information, please call the Tax Credit Telephone Service at 410-767-4433 and request Form HTC-NP
The State of Maryland has developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income.
For purposes of the tax credit program, it is emphasized that applicants must report total income, which means the combined gross income before any deductions are taken. Income information must be reported for the homeowner and spouse and all other occupants of the household unless they are dependents or they are paying rent or room and board. Income from all sources must be reported whether or not the monies received are included as income for Federal and State income tax purposes. Nontaxable retirement benefits such as Social Security and Railroad Retirement must be reported as income for the tax credit program. Generally, eligibility for the tax credit will be based upon all monies received in the applicant's household in a given year.
Before your eligibility according to income can be considered, you must meet four basic requirements
The tax credit is based upon the amount by which the property taxes exceed a percentage of your income according to the following formula: 0% of the first $8,000 of the combined household income; 4% of the next $4,000 of income; 6.5% of the next $4,000 of income; and 9% of all income above $16,000.
The chart below is printed in $1,000 increments to show you the specific tax limit for each income level.
* For each additional $1,000 of income above $30,000, you add $90 to $1,680 to find the tax limit. Your combined gross household income cannot exceed $60,000.
Example:If your combined household income is $16,000, you see from the chart that your tax limit is $420. You would be entitled to receive a credit for any taxes above the $420. If your actual property tax bill was $990, you would receive a tax credit in the amount of $570 --- this being the difference between the actual tax bill and the tax limit.
Homeowners who file and qualify by May 1 will receive the credit directly on their tax bill. Persons who file later up until the October1 deadline will receive any credit due in the form of a revised tax bill. Applicants filing after May 1 are advised not to delay payment of the property tax bill until receipt of the credit if they wish to receive the discount for early payment offered in some subdivisions. A refund check will be issued by the local government if the tax bill was paid before the tax credit was granted.
Whenever homeowners are found not qualified to receive a tax credit, they are informed in writing. The letter gives the reason for denial and what steps to take if further questions remain. The letter also explains how homeowners can appeal the determination of ineligibility to the local Property Tax Assessments Appeals Board.
301 W. Preston St., Baltimore, MD 21201-2395
410-767-1184 | Outside the Baltimore Metro Area 888-246-5941 | Maryland Relay 800-735-2258