In Maryland, home property tax assessments work on a three year cycle. Every three years your home is evaluated for property tax purposes and you have that one opportunity to contest the new assessment. The schedule for your area may be different but the process is the same. In another year or so, it’ll be our turn to be reassessed and we’re hoping that lowered home prices means lower property taxes.
Maryland also has a Homestead Tax Credit that caps the year over year increase of assessment value to 2-10% (depends on the county). Anything above 10% each year is given as a tax credit so that your cost doesn’t increase more than 2-10% a year. You have to be the owner of the property and live in it as your principal residence to qualify.
So every three years you get the opportunity to contest the property tax assessment and here’s a scenario in which you want your home value to go down. The cheaper they assess your property, the fewer dollars you pay in property taxes. It may make you feel good to learn your home’s value has increased but it hurts your wallet! The only solution is to contest their assessment and here’s how.
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