Maryland property taxes on homes (and cars)

How the tax on a Maryland home works

• Assessment. The State Department of Assessments and Taxation (SDAT) reassesses every property once every three years. An increase is phased in over the next three years.
• Rates. You pay a small state rate plus your county or Baltimore City rate, each quoted per $100 of assessed value. Some towns and special districts add their own rate on top. County rates differ a lot, which is one reason the same price buys a different monthly payment in Howard, Prince George's or Baltimore City.
• Credits. The Homestead Tax Credit caps yearly increases on your main home. Low and moderate income owners may qualify for the Homeowners' Property Tax Credit. Some counties add their own credits, for example for seniors or veterans.

When the bill is due

Maryland's tax year runs July 1 through June 30. Bills go out in July. If the home is your principal residence you can pay in two installments, due September 30 and December 31; otherwise the full amount is due by September 30. If you have a mortgage with escrow, your lender pays it from the monthly amount it collects.

At a sale, the year's tax is prorated between buyer and seller on the settlement statement, so each side pays for the days they own the home.

Checking a home's tax before you buy

The tax a seller pays is not always what you will pay. Their bill may include a homestead cap built up over years, or a senior credit, that does not carry over to you. Ask for the full assessed value and the current rates, and budget on the full value. We do this math on every home we write an offer on.

What about cars?

Maryland does not tax personal cars every year the way Virginia does. You pay a one-time excise tax when you title a vehicle in Maryland, which is 6.5% of the purchase price for most vehicles acquired on or after July 1, 2025 (it was 6% before), plus registration fees. If you move here and already paid sales tax in another state, part of that may be credited. Businesses file a separate personal property return for business equipment, but that does not apply to a household car.

Quick answers

Does Maryland have property tax on cars?

No yearly property tax on personal vehicles. Maryland charges a one-time vehicle excise (titling) tax when you title a car, 6.5% of the price for most vehicles bought on or after July 1, 2025, plus registration fees every one or two years.

Are Maryland property taxes paid monthly or yearly?

The bill is yearly, for a tax year that runs July 1 to June 30, and it goes out in July. Owner-occupants can pay a principal residence in two installments (due September 30 and December 31). Most people with a mortgage pay monthly without noticing, because the lender collects it in escrow and pays the bill.

How is Maryland property tax calculated?

Your assessed value (set by the State Department of Assessments and Taxation) times the combined state and county rate, which is quoted per $100 of assessed value, minus any credits such as the Homestead Tax Credit.

Does Maryland cap property tax increases?

For your principal residence, the Homestead Tax Credit limits how much the taxable assessment can rise each year: 10% for the state portion, and many counties set a lower cap. You have to apply for it once with SDAT if it is not already on your account.

This guide is general information, not legal, tax or financial advice. Rules change and vary by county; confirm the details for your situation with the agency named above, a tax professional or an attorney.