Have you applied for the Maryland homestead tax credit yet?

The purpose of the Homestead Credit Program is to help homeowners afford annual property tax increases on their owner-occupied homes. The State caps annual assessment increases at 10 percent as applied to annual property taxes. Baltimore City caps at 4 percent. This credit protects homeowners, regardless of age, income, or property value, from annually spiking tax bills. It’s an important credit, and if you have not yet applied — the deadline is December 31, 2012.

Please note: This tax credit is NOT for rental properties or second homes. All homes receiving this tax credit must be owner-occupied.

Five years ago, the Maryland General Assembly required that all Maryland homeowners apply one time only to continue receiving the State’s Homestead Tax Credit. This action was taken to “weed out” recipients’ illegally claiming investment properties or second homes as eligible for this credit.

If you can’t remember whether you applied when you purchased your home, you can go to the State Department of Assessments and Taxation’s website and check:

  • Enter your address, and go to the bottom of the screen.
  • Where it says “Homestead Application Status”, if it says “NO APPLICATION”, it means you need to fill out the form and mail it in by the deadline.
  • If it gives a date and says the application has been received, you’re done.

Please remember that all applications must be received on or before December 31, 2012, or you will lose this credit for tax year 2013.

You can find more information and download the application form here.