The Maryland Department of Assessments and Taxation (SDAT) announced its 2025 reassessment of 712,782 “Group 1” residential and commercial properties. The overall statewide value increase for “Group 1” properties was 20.1 percent since its last reassessment three years ago.
County property tax revenues will not increase by 20.1 percent, as this reassessment only covers one-third of property accounts. Furthermore, when property values increase, the increase is phased in equal increments over the next three years. Additionally, every county in Maryland caps the annual increase in taxable home values through the Homestead Tax Credit, ensuring that property tax burdens do not rise too quickly, regardless of market conditions.
SDAT is responsible for assessing property in Maryland. Assessments conducted by the State, rather than the local governments, help assure taxpayers that the assessing body provides objective, unbiased analysis.
Maryland splits more than 2 million property accounts into three groups, each appraised once every three years. The data shows an average increase in value of 21.1 percent for all residential properties and 16.4 percent for all commercial properties over the three years since the last “Group 1” reassessment in 2022.
Property value increases phase in equal increments over three years. The triennial process and its three-year phase-in schedule deliberately offer some cushion for taxpayers during periods of swift and considerable increases in property values.
“As part of our Tax Credit Awareness Campaign, each reassessment notice includes the status of the property as the owner’s principal residence and the status of their Homestead Tax Credit application.” said SDAT Director Dan Phillips. “Owners are encouraged to apply for the Homestead Tax Credit if the property is their principal residence and they have not applied.”
The 2025 assessments for “Group 1” properties were based on an evaluation of 60,761 sales that occurred within the group over the last three years. If the reassessment resulted in a property value being adjusted, any increase in value will be phased-in equally over the next three years, while any decrease in value will be fully implemented in the 2025 tax year. For the 2025 reassessment, 96.9% of Group 1 residential properties saw an increase in property value.
The Homeowners’ Tax Credit program provides relief for limited income homeowners by setting a limit on the amount of property taxes that they are responsible for based on their income. All homeowners are encouraged to visit the Department’s website at dat.maryland.gov for additional information regarding the tax credit programs.
SDAT sent property tax assessment notices to Group 1 property owners on Thursday, December 28, 2024. A map of properties that fall into Groups 1, 2, and 3 and their respective years for reassessment can be viewed on SDAT’s website here. Please visit the Department’s Statistics & Reports webpage for additional statistics and information.