The Maryland Department of Assessments and Taxation (SDAT) is urging Marylanders to consider whether they may be eligible to receive a homeowners’ or renters’ property tax credit by accessing its online tax credit application system. The Maryland General Assembly this year approved legislation to extend the submission deadline to October 1.
As part of the 2020 Tax Credit Awareness Campaign, SDAT last week mailed 133,706 postcards to low-income Maryland homeowners that may be eligible to receive credit but have not yet submitted an application. Additionally, SDAT representatives have participated in outreach activities throughout the year with various interest groups and organizations to educate Marylanders about tax relief that may be available to them.
The Homeowners’ Property Tax Credit Program provides relief for eligible homeowners by setting a limit on the amount of property taxes owed based on their income. If a resident has already paid their property taxes and applies before October 1, any tax credit that the homeowner may be eligible for will be refunded by their county finance office.
The Renters’ Property Tax Credit Program provides tax relief for eligible renters who pay high monthly rent relative to their total income and do not receive federal or state housing subsidies or reside in public housing. The credit is issued in the form of a direct check payment of up to $1000.00 per year.
In 2019, 46,000 Maryland homeowners received an average of $1,347.65 in tax relief, and 8,773 renters received an average of $413.53 in tax relief. Combined, these two tax credit programs saved Marylanders more than $65 million last year.
Several counties and municipalities also offer supplemental homeowners credits, which provide additional tax relief. If a resident is approved to receive the state credit, they will automatically receive any local supplemental credit for which they are eligible.