The Renters' Tax Credit Program provides property tax credits for renters who meet certain requirements. The plan was modeled after and designed to be similar in principle to the Homeowners' Tax Credit Program, which is known to many as the Circuit Breaker Program. The concept rests on the reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection, as do homeowners.
The plan is based upon the relationship between rent and income. If the portion of rent attributable to the assumed property taxes exceeds a fixed amount in relation to income, the renter can, under specified conditions, receive a credit of as much as $1,000. The credit is paid as a direct check from the State of Maryland.
HOW A RENTED DWELLING IS DEFINED
The rented dwelling may be an apartment in an individual house or any type of apartment building, duplex, co-op, condominium, house trailer, or mobile home pad. The dwelling must be the principal residence in Maryland and the renter must live there at least six months of the year. You are only eligible to receive a tax credit for rent paid in the State of Maryland.
The applicant must have a bona fide leasehold interest in the property and be legally responsible for the rent. If the dwelling that is rented is owned by a tax exempt, charitable organization or is exempt in any way from property taxation, a tax credit cannot be granted.
HOW TO DETERMINE IF YOU MAY BE ELIGIBLE
COMBINED INCOMES: Credits are calculated according to total income, meaning all combined gross household income before deductions. This includes income from all sources, whether or not taxable for federal and state income tax purposes. It also includes Social Security as well as all other retirement benefits.
AGE 60 OR OVER OR 100% DISABLED
If you are age 60 or over or 100% disabled, use the chart below to determine if it is worthwhile for you to file an application.
- Find your approximate 2022 total gross household income in Column A.
- If your monthly rent is more than the figure in Column B across from your income, you may be eligible and are encouraged to apply.
$1 - 10,000
The rent in Chart 1 assumes that you pay all your own utilities separate from the monthly rent. If the rent includes gas, electric and heat, you may need to have as much as 18% higher monthly rent to qualify for a credit.
Trailer park residents are advised to submit an application and allow this office to determine eligibility.
Chart 1 is a guide only, and the exact amount of your income and rent will be used to determine your eligibility. If you submit an application, the State will determine your eligibility.
UNDER 60 YEARS OF AGE
If you are a renter under the age of 60 who, during 2022, had at least one dependent under the age of 18 living with you AND you did not receive federal or state housing subsidies or reside in public housing AND the combined income of all residents of your dwelling is below the following guidelines, you are encouraged to apply.
Persons in Household
Note: If you think you qualify based on the income limits on the above chart, you are encouraged to apply. The State will determine your eligibility using the above chart and the formula that compares rent and income (See Chart 1).
If you have additional questions regarding the Renters' Tax Credit, please contact the Department's Renters' Tax Credit Program at email@example.com