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Homeowners' and Renters' Tax Credit Program

Homeowners' Tax Credit

Renters' Tax Credit

The State of Maryland provides for some relief for eligible residents in the amount they must pay toward rent or property taxes. Eligibility is based on gross household income compared with the amount paid toward the rent or property taxes. A brief description of each program is given below.

For applications, call Maryland Access Point of Baltimore County at 410-887-2594 or the Maryland Department of Assessment and Taxation at 410-767-4433 and visit www.dat.state.md.us for more information.

Homeowners' Tax Credit

The Homeowners' Property Tax Credit Program is available to Maryland homeowners of all ages. The program sets a limit on the amount of property taxes any homeowner must pay based upon household income. The maximum assessment eligible for credit is $300,000. The homeowner must reside in the residence for at least six months of the year, including July 1.

The gross income, including Social Security benefits, must fall within certain limits compared to the property tax bill. If the actual property taxes on your home exceed the tax limit shown on your gross household income you may be eligible for a credit. Baltimore County has added a local supplement onto the State tax credit, bringing the eligibility requirements to the following:

Household Income

Tax Limit

$1 -12,000

$0

13,000 

65

  14,000 

130

15,000 

195

16,000 

260

17,000 

350

 18,000 

440

 19,000 

530

 20,000 

620

 21,000 

710

22,000 

800

23,000

                  890

24,000

                  980

25,000

               1,070

26,000

                1,160

27,000

                 1,250

28,000

                  1,340

29,000

                  1,430

30,000

              1,520

and for a maximum

of $60,000

   *


*For each additional $1,000 of income above $30,000, add $90 to $1,680 to find the tax limit. The gross household income cannot exceed $60,000.

Certain other limitations apply to obtain this tax credit.

Homeowners should file and qualify by May 1 in order for the credit to be on their tax bill ; however, they normally have until September 1 to file, and, if eligible, will receive a tax credit certificate or revised tax bill.

Homeowners age 70 and above may apply for the previous three years if they have not already applied.

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Renters' Tax Credit

Renters indirectly pay property taxes as part of their rent. If renters are age 60 or over or 100 percent disabled, they may be eligible for a tax credit of up to $750 if they meet certain eligibility requirements, based on the relationship between rent and income. Under certain circumstances, renters under age 60 with children may also be eligible. The surviving spouse of one who was age 60 or older or totally disabled is also eligible for the credit.

The apartment may be in an individual house or apartment building, duplex, co-op, condominium, house trailer or mobile home pad. The applicant must live there at least six months of the year and be legally responsible for the rent. Trailer park residents are also advised to apply. If the dwelling is owned by a tax exempt charitable organization or is exempt from property taxation, a tax credit can not be granted.

To determine eligibility, the renter should find their total gross household income in the left-hand column below. If the monthly rent is more than that listed in the column opposite the income, the renter may be eligible for the tax credit. The application must be filed no later than September 1.

Total Income

Monthly Rent

  $1 - 5,000

$14

 6,000

28

 7,000 

42

 8,000 

56

 9,000 

86

 10,000 

117

 11,000 

147

 12,000 

178

 13,000 

219

 14,000 

261

15,000 

303

 20,000 

544

 25,000 

794

30,000 

1,044

Learn more at the Maryland Department of Assessments and Taxation web site www.dat.state.md.us.

The Department of Aging can assist elderly and disabled residents to complete the tax credit applications. Contact Maryland Access Point of Baltimore County at 410-887-2594 to locate the Community Outreach Specialist or the Income Tax Counselor nearest you. The State will determine eligibility for both of these programs upon receipt.

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Revised September 14, 2012

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