The Maryland State Department of Assessments and Taxation (SDAT) is mailing nearly 124,000 postcards encouraging low-income homeowners and renters to apply for property tax credits.
The Maryland State Department of Assessments and Taxation (SDAT) launched its 2022 Tax Credit Awareness Campaign urging Marylanders to consider whether they may be eligible to receive homeowners’ or renters’ property tax credits. The online tax credit application system is the quickest and easiest way to find out more information and submit an application. The deadline to file for both tax credits is October 1, 2022.
This week, SDAT is mailing 113,529 postcards to low-income Maryland homeowners who may be eligible but have not yet applied for credits. In addition, SDAT will send 10,322 postcards to known renters who have not already applied for the tax credit and non-subsidized rental companies to inform their tenants.
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, their county finance office will refund the amount of the credit.
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 through a direct check payment of up to $1000.00 per year.
In 2021, over 37,800 homeowners received an average of $1,465 in tax relief, and 6,636 renters received an average of $446 in tax relief. These two tax credit programs saved Marylanders more than $58 million last year.
Many counties and municipalities also provide 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.