Were you aware that Maryland offers various tax credits that you could take advantage of that may potentially save you hundreds or thousands of dollars per year on your property taxes, or rent if you are a renter? Well, yes and let's do a quick run down. We are going to discuss (3) of them: The Homestead Tax Credit, the Maryland Homeowner's Tax Credit, and the Renter's Tax Credit.
Maryland Homestead Tax Credit (Deadline: none) | Application
The Homestead Property Tax Credit may significantly reduce the amount of property taxes you would owe, should property values drastically increase, and limits the amount of assessment tax increase beyond 10% in a given tax year on the property that is used as the owner's principal residence. It is a one-time application and you'll never have to apply again, and it never expires. If the property is sold, it does not transfer to the new owner and the new owner would need to be in the property a full year before applying for the text credit. More info.
Maryland Homeowner's Tax Credit (Deadline: October 1st) | Application
Maryland developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the property owner's gross income. It sets a limit on the amount of property taxes any homeowner must pay based upon his or her income. Homeowners who file and qualify by April 15 will receive the credit directly on their tax bill. Persons who file later, up until the October 1st 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. More info.
Maryland Renter's Tax Credit (Deadline: October 1st) | Application
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. 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. More info.
