Property Tax Credits: Are you eligible?

There are several resources that Takoma Park residents may find beneficial when filing their taxes: The Maryland Homestead Tax Credit, Homeowners’ Property Tax Credit, and Renters’ Tax Credit. Print Property Tax Credit Handout Sheet

Homestead Tax Credit:

This state program caps increases in annual tax assessments at 10% for those who have lived in their own home for more than one year. Applies to city taxes as well.

• You must apply by May 1, 2023

Homeowners Property Tax Credit:

For lower-income homeowners, the Homeowners’ Property Tax Credit provides a credit against a homeowner’s property tax bill if the property taxes exceed a fixed percentage of their gross income. The credit amount varies based on household income.

• You must apply by October 1, 2023
• Visit:  Application

For homeowners over the age of 65, Montgomery County also offers a Senior Property Tax Credit that uses the same application as the Homeowners’ Property Tax Credit.

County Property Tax Credit for Elderly Individuals and Military Retirees

Montgomery County recently expanded the eligibility requirements for this tax credit, which provides up to a 20% credit on County property taxes for up to seven years for qualifying individuals 65 years and older or eligible military service retirees.

County Senior Property Tax Deferral

Montgomery County offers a property tax deferral option for low-income homeowners who have resided in their property for five consecutive years and are at least 65 years old. This deferral only applies to the Montgomery County portion of the real property tax bill.

Renters’ Tax Credit

For lower-income renters, the State of Maryland and Montgomery County offers a tax credit program based on the relationship between a renter’s income and rent. Eligibility requirements can vary based on age, income, and rent. Local renters may visit the State of Maryland’s Renter Tax Credit information page to determine eligibility.

Application Links:

Homestead Tax Credit: https://sdathtc.dat.maryland.gov/

Homeowners’ Property Tax Credit:¹ https://dat.maryland.gov/realproperty/Pages/Homeowners’- Property-Tax-Credit-Program.aspx

Montgomery County Property Tax for Elderly Individuals and for Military Retirees: https://www.montgomerycountymd.gov/Finance/bill-42-16.html

Montgomery County Senior Property Tax Deferral Program: https://www.montgomerycountymd.gov/finance/seniordeferral.html

Renters’ Tax Credit: https://dat.maryland.gov/realproperty/Pages/Renters’-Tax-Credits. aspx

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¹ Applies to the State and County credit, as well as the County’s Senior Property Tax Credit