The Maryland Homestead Tax Credit is a credit to a homeowner who lives in their Maryland home.

As of 2023, you can apply for the Homestead Tax Credit online on the Maryland OneStop website.

To be eligible for the Homestead Tax Credit, it must be on your principal residence. You must fill out an application, which can be done online or via paper.

I wrote a post about this years ago – How to Apply for the Maryland Homestead Tax Credit.

What is the the Homestead tax credit? The Homestead tax credit limits the increase in the value of a property tax bill. In Baltimore County, the current homestead cap is 4%. Baltimore City is also currently at 4%. Harford County is 5%.

If you bought a new home, you must live there for a year. The credit is based on July 1 of the applicable tax year, and it must be your principal residence and you must have lived in it for at least six months of the year, including July 1 of the year for which the credit is applicable. Per the site: “The property was not transferred to new ownership” in that tax year. According to the Maryland Government’s website, “New purchasers of properties will be mailed a homestead application by the Department once the new deed is recorded and our records have been updated.”

For example, if you buy a house in December, you couldn’t be eligible until after July 1 of the following year.

To determine if you are eligible for the homestead tax credit reduction, here is a link to the application.

Please let me know how I can help you with your Baltimore County home!