Rate Breakdown

Property taxes in Montgomery County are calculated by multiplying the assessed value (minus exemptions) by the total local millage rate.

How Property Tax Works in Montgomery County

Property taxes in Montgomery County are calculated based on the assessed value of your real property, which is determined by the Maryland Department of Assessments and Taxation (SDAT). Properties are reassessed on a three-year cycle. The total tax bill is derived by multiplying the assessed value (minus any applicable exemptions) by the combined tax rate, which includes the county rate, state rate, and any applicable municipal or special area taxes. The “millage rate” represents the tax rate per $100 of assessed value. It is important to note that Montgomery County utilizes a “homestead tax credit” to limit the annual increase in taxable assessment for owner-occupied residential properties, preventing sudden, drastic spikes in your tax burden due to rising market values.

Available Exemptions

Maryland offers several programs to help reduce the financial burden of property taxes for eligible homeowners. Key exemptions include:

• Homestead Tax Credit: Limits the annual increase in the taxable assessment of an owner-occupied primary residence. You must file an application with the state to receive this benefit.
• Senior Citizen Tax Credit: Montgomery County provides a property tax credit for residents aged 65 or older who meet specific income and asset requirements.
• Disability Exemptions: Disabled veterans and surviving spouses of military personnel killed in the line of duty may be eligible for a full property tax exemption on their primary residence.
• Homeowners’ Property Tax Credit Program: This state-funded program provides credits for homeowners who meet certain income thresholds, regardless of age.

Payment Schedule & Deadlines

Montgomery County offers several methods for paying property taxes. The annual tax bill is typically mailed in July. You may choose to pay the full amount by September 30, or utilize the semi-annual payment schedule. Under the semi-annual option, the first half is due by September 30, and the second half is due by December 31. If you fail to pay by the established deadlines, interest and penalties accrue monthly at a rate of 1% until the balance is satisfied. Continued delinquency may result in the county placing a tax lien on the property, which could eventually lead to a tax sale.

Appealing Your Assessment

If you believe your property’s assessed value is inaccurate or higher than its fair market value, you have the right to appeal. The process begins once you receive your Notice of Assessment from the SDAT. You must file a written appeal within 45 days of the date listed on the notice. The process typically involves a supervisor review, followed by a formal hearing before the Property Tax Assessment Appeals Board if the matter is not resolved. It is recommended that you gather evidence, such as recent appraisals or sales data of comparable properties in your neighborhood, to support your claim during the appeal process.