The Maryland Department of Assessments and Taxation (SDAT) released its 2026 reassessment results for “Group 2” residential and commercial properties, showing continued growth in property values but at a slower pace than recent cycles.
This reassessment does not translate into immediate or proportional increases in county revenues. Maryland’s property tax structure deliberately limits how quickly tax bills can rise, even when assessed values increase.
For the 2026 reassessment, SDAT reports a 12.7 percent overall statewide increase in assessed value for Group 2 properties. Residential properties increased an average of 13.2%, while commercial properties increased by 11% over the three-year reassessment period.
While values continue to rise, the pace slowed sharply compared to recent cycles. Last year’s reassessment reflected a 20.1% statewide increase, and the 2023 cycle posted a 23.4% increase.
The current reassessment represents a 7.4% drop from last year, nearly a 37% slowdown, and a 10.7% decline from 2023, roughly a 46% reduction in growth.
SDAT reassesses properties on a three-year cycle, dividing more than two million accounts into three groups. Each group undergoes reassessment once every three years, with any increase in assessed value phased in evenly over the following three tax years. Any decrease in value takes effect immediately.
For the 2026 reassessment, SDAT reports that overall property value growth slowed compared to the prior cycle, reflecting cooling market conditions and easing price pressures in parts of the housing market.
“Property values are still rising, but at a more sustainable pace,” said SDAT Director Bob Yeager. “After the rapid increases seen during the post-COVID recovery, this moderation is an important step toward balancing household wealth growth with housing affordability.”
Why Reassessments Don’t Mean Revenue Surges
Even when property values rise, county revenues do not jump in lockstep.
First, each reassessment applies to only one-third of property accounts statewide. Second, the phase-in requirement spreads increases over three years, preventing sudden spikes in taxable value. Third, every county administers the Homestead Tax Credit, which limits annual increases in the taxable value of owner-occupied homes, regardless of market conditions.
Together, those protections ensure stability for homeowners and predictability for local budgets, while preventing sharp tax increases driven solely by market swings.
The State Sets Assessments, Not Counties
SDAT conducts all property assessments in Maryland. Counties do not set assessed values.
That separation matters. State-run assessments provide uniform standards and independent analysis, while counties apply local tax rates to the taxable base established by the State. The system protects taxpayer confidence and avoids conflicts that could arise if the same entity assessed property and collected taxes.
Recent policy decisions have strained that balance. Last year, the General Assembly shifted roughly 90% of SDAT’s operating costs to counties, adding about $21.2 million in annual expenses for a state agency that counties do not control. Counties gained no authority over SDAT staffing, operations, or spending, despite bearing 90% of the cost.
Counties rely on SDAT to deliver fair, objective assessments — a core State responsibility. Requiring counties to fund that function without oversight undermines accountability and risks eroding public confidence in the assessment process’s independence.
What Homeowners Should Know
Property owners receiving a 2026 reassessment notice should review it carefully and understand how the phase-in works. For homeowners whose property is their principal residence, the Homestead Tax Credit remains the primary safeguard against rapid increases in taxable value.
SDAT continues to encourage eligible homeowners to apply for the Homestead Tax Credit if they have not already done so. The Homeowners’ Property Tax Credit is also available to qualifying households based on income.
Bottom Line
The 2026 reassessment reflects a cooling housing market, not a revenue windfall for counties.
Maryland’s reassessment framework, phase-in rules, and homeowner protections continue to smooth market volatility, protect taxpayers, and provide stability for local governments that fund schools, public safety, and core services through property taxes.
A map of properties in Groups 1, 2, and 3, along with their respective reassessment years, is available on SDAT’s website here. Visit the Department’s Statistics & Reports webpage for additional statistics and information.
