04/20/23 1

Homeowners’ Tax CreditHomeowners’ Tax CreditThe State Department

of Assessments

&Taxation

Helping Marylanders remain in their homes for 37

years.

2

Once upon a time a couple purchased their dream

house.

3

It wasn’t big. It wasn’t fancy. But it was what they needed at a price they could afford.

4

Other people noticed that it seemed to be a nice area to live.

5

And they began to build their homes there. They built bigger and more expensive homes.

Homes that the couple could not afford.

6

7

8

The Property Tax Bill that was $400 when they purchased the home was now $2000.

County Tax Bill

County Taxes

$ 1630

State Taxes

250

Special Area Taxes

220

Total Taxes

$ 2000

FOR

SALE

WHAT COULD THEY DO?

9

Someone told him to apply for the

Homeowners’ Tax CreditProgram

What is the Homeowners' Property Tax Credit Program?

The State of Maryland has developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes any homeowner must pay based upon his or her income.

10

County Tax Bill

County Taxes

$ 1630

State Taxes

250

Special Area Taxes

220

Total Taxes

$ 2000

Less Homeowners’ Tax Credit 700

Taxes Due

$ 1300

They applied for the Homeowners’ Tax Credit and were eligible to receive a credit on the bill.

11

Homeowners’ Tax CreditHomeowners’ Tax CreditThe State Department

of Assessments

&Taxation

Helping Marylanders remain in their homes

for 37 years.

04/20/23 12

RENTERS’ TAX CREDITS

Have you heard that Renters’ indirectly pay

property taxes?

04/20/23 13

How is that

possible , we don’t

own a house?

how

04/20/23 14

Well, when your landlord determines

how much he will charge for rent he takes into

consideration the amount of property

taxes that he has to pay for the dwelling.

04/20/23 15

So, you see renters do

indirectly pay property taxes.

04/20/23 16

How do I determine if I may be

eligible?

04/20/23 17

You should look at the charts on the application to see if you fall under one of the categories. If so, you are encouraged to apply.

04/20/23 18

Were you over 60 years old last year?

May be eligible and

encouraged to apply

Did you receive Federal or State housing subsidy?

Were you permanently and totally disabled?

Was your income under the poverty level?

Were you the surviving spouse of a person who would have been over 60 or was permanently and totally disabled?

NOT ELIGIBLE

Did you have a dependent child under 18 in your home last year?

NO

NO

NONO

NO

NOYES

YES

YES

YES

YES

YES

CHART 3

Be certain to consult Charts 1 and 2 for eligibility requirements