Homeowners' Tax Credit Application
The Homeowners' Tax Credit applications can now be filed online!
2026 Application Form (paper):
Sign up to receive important email updates about these tax credits.
What is the Homeowners' Property Tax Credit Program?
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.
How Is "Income" Defined?
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 over (18) years of age 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.
What Are The Other Requirements?
Before your eligibility according to income can be considered, you must meet four basic requirements
- You must own or have a legal interest in the property.
- The dwelling on which you are seeking the tax credit must be your principal residence where you live at least six months of the year, including July 1, unless you are a recent home purchaser or unless you are unable to do so because of your health or need of special care.
- Your net worth, not including the value of the property on which you are seeking the credit or any qualified retirement savings or Individual Retirement Accounts, must be less than $200,000.
- Your combined gross household income cannot exceed $60,000.
How Is The Credit Figured?
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.
| 2025 Household Income |
Tax Limit |
|---|
$1 - 8,000 |
$0 |
9,000 |
40 |
10,000 |
80 |
11,000 |
120 |
12,000 |
160 |
13,000 |
225 |
14,000 |
290 |
15,000 |
355 |
16,000 |
420 |
17,000 |
510 |
18,000 |
600 |
19,000 |
690 |
20,000 |
780 |
21,000 |
870 |
22,000 |
960 |
23,000 |
1050 |
24,000 |
1140 |
25,000 |
1230 |
26,000 |
1320 |
27,000 |
1410 |
28,000 |
1500 |
29,000 |
1590 |
30,000 |
1,680 |
and up to a maximum
of $60,000 |
* |
* 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.
What Other Limitations?
- Only the taxes resulting from the first $300,000 of assessed valuation.
- It does not cover any metropolitan or fixed charges for water and sewer services that may appear on the tax bill.
- If an applicant owns a large tract of land, the credit will be limited to the lot or curtilage on which the dwelling stands and will not include the excess acreage.
- If a portion of your dwelling is used for commercial or business purposes, the credit will be based only upon the taxes for that portion of the dwelling occupied by your own household.
How Does One Receive The Credit?
Homeowners who file and qualify by April 15 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 April 15 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.
Eligibility for Heirs
Heirs who do not yet hold the official record title may qualify for the credit for up to 3 taxable years while finalizing the title transfer.
To qualify an applicant must verify legal interest and meet the same
requirements outlined above. In addition the following documentation must be submitted:
- A copy of the will, trust or nonprobate instrument of writing for the deceased homeowner(s)
- A copy of the death certificate for the deceased homeowner(s)
- A copy of the documentation that shows the surviving family member is related to the deceased homeowner(s) by blood, adoption, or marriage.
- The names and current addresses of all heirs of the property
What Happens If One Is Not Eligible?
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.
County Supplemental Tax Credit Information
The supplemental tax credits are administered by the State of Maryland Homeowners’ Tax Credit Program. To apply for the state tax credit and/or county supplemental tax credit, applicants are only required to submit SDAT's HTC Form. Some applicants may be eligible for a supplemental tax credit even though they may be ineligible for a state credit based on income.
Inherited a Home? How to Maintain Property Tax Credits Under Maryland HB 1148
If you are an heir or legatee residing in the home of a deceased Maryland homeowner, House Bill 1148 (2026) allows you to keep or apply for essential property tax credits—including the Homeowners’ and Homestead Tax Credits—for up to three taxable years while you navigate the probate process.
To qualify for these tax credits before the deed is officially transferred into your name, you must submit a completed
Affidavit for Continued Tax Credits for Heirs. 
Maryland HB 1148 Affidavit
What You Need to Know Before Filling Out the Affidavit:
- Complete All Fields: Every blank in the affidavit must be filled out before returning the form.
- Use Your Own Words: Answers must be written directly by the applicant to ensure accuracy and personal verification under penalty of perjury.
- Legal Representatives: If the applicant is unable to complete the form, an authorized legal representative or court-appointed Personal Representative of the estate may complete it on their behalf.
Baltimore County Homeowners’ Tax Credit: Hardship Exception Guide
The Baltimore County Local Supplement to the Homeowners' Property Tax Credit Program helps eligible homeowners lower their real property tax obligations.
While the standard program requires a combined annual income of $60,000 or less, homeowners earning between $60,001 and $75,000 may still qualify for a one-time hardship exception if significant medical or property casualty expenses caused financial distress.
Program Eligibility Criteria
To qualify for the Hardship Property Tax Credit Exception, you must meet all of the following conditions:
- Net Worth: Combined net worth as of December 31 of the preceding calendar year must not exceed $200,000 (excluding the value of your primary residence).
- Income Range: Combined income for the preceding calendar year is between $60,001 and $75,000. (Income would have been $60,000 or less if not for hardship-related costs).
- Previous Status: You were eligible for and received the tax credit in the previous calendar year, but were denied for the current year due to income exceeding $60,000.
- One-Time Usage: The hardship credit is granted one time only per dwelling owned by the homeowner.
- Funding Cap: Hardship credits are awarded up to a County aggregate cap of $250,000 per fiscal year.
What Qualifies as a "Hardship"?
- Medical / Injury Event: An illness or accident-related injury suffered by the homeowner or a member of the homeowner's immediate family.
- Property Casualty Event: A property casualty event occurring at the homeowner’s primary dwelling (e.g., storm damage, fire, or accidental damage).
- Complete All Blanks: Fill in every blank field on the Affidavit form below prior to submission
- Personal Completion: The form must be completed in the applicant’s own words (unless an authorized legal representative is acting on the applicant's behalf).
- Select Your Hardship Type: You may complete section (4), section (5), or both depending on whether your hardship involves medical expenses, casualty losses, or both.
- Attach Required Documentation: You must include copies of all supporting documentation, such as:
- Itemized medical bills or health insurance claims.
- Property casualty insurance claims, damage estimates, or repair receipts.
- Any additional records establishing financial distress directly caused by the event.
Right to Appeal: If your hardship exception request is denied by the State Department of Assessments and Taxation (SDAT), you may file an appeal pursuant to §§ 14-509(c) and 14-512(e) of the Tax-Property Article of the Maryland Code.
Contact InformationIf you have additional questions regarding the Homeowners' Tax Credit, please contact the Department's Homeowners' Tax Credit Program at
sdat.home[email protected] or 410-767-4433.
