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.
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 his or her income. Legislation passed in 2006 has increased the maximum assessment eligible for credit from $150,000 to $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 2007 gross household income you may be eligible for a credit. The eligibility requirements for 2008 are:
| |
| $1 -8,000 | $0 |
$9,000 | $40 |
$10,000 | $80 |
$11,000 | $120 |
$12,000 | $160 |
$13,000 | $225 |
$14,000 | $290 |
$15,000 | $355 |
$20,000 | $780 |
$25,000 | $1,230 |
$30,000 | $1,680 |
and up * | |
*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.
For an application (PDF) go to the Department of Assessments and Taxation website or call Senior Information and Assistance at 410-887-2594.
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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 2007 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.
| |
$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 |
The Department of Aging can assist elderly and disabled residents to complete the tax credit applications. Contact the Senior Information and Assistance office at 410-887-2594 to locate the Community Outreach Specialist or the Income Tax Counselor nearest you. You may also go to the Department of Assessments for the application (PDF). The State will determine eligibility for both of these programs upon receipt.
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Revised February 8, 2008
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