Baltimore City has announced two major initiatives to improve the property tax experience for residents.

First, the City is pursuing an ambitious property tax relief strategy to lower the effective tax rate for residential homeowners. Second, following an agreement with Maryland Legal Aid to continue legal challenges, the City will make changes to its tax sale process, including raising the minimum bid to the assessed value and establishing payment plans for residents.

These initiatives continue Baltimore’s effort to responsibly improve the city’s property tax competitiveness and further ease the burden for our most vulnerable residents.

From the City’s press release:

“Our city’s Renaissance is here, which means more people than ever want to buy a home and put down roots in Baltimore,” said Mayor Brandon M. Scott. “We know that our property tax rate can be a challenge for homeowners, which is why – in addition to our broader housing affordability investments – we’re announcing this strategy to bring the effective property tax rate for residential homeowners below $2.00 this year. Today’s announcement is yet another way we’re working to make sure our residents can continue being the first beneficiaries of our city’s growth.

“In addition, we have reached an agreement with Maryland Legal Aid to tackle longstanding challenges in our tax sale process by elevating the minimum bid to assessed value of the property and establishing – for the first time in the city’s history – payment plans for residents in danger of facing tax sale. Residents will now have an option to begin tackling their large, overdue tax bills in installations instead of all at once, making it easier to ensure legacy homeowners can hold on to their homes even in difficult times.”

The City’s plan is structured around three coordinated actions that would take effect beginning in Fiscal Year 2027:

• Adjusting the Homestead Tax Credit Cap
• Expanding the Targeted Homeowners Tax Credit
• Increasing Enrollment in State Tax Credit Programs

In addition to tax credit changes, the City announced significant reforms to its tax sale system following an agreement with Maryland Legal Aid.

Key changes include:

• Raising the minimum bid at tax sale to the full assessed value of the property, aimed at protecting homeowner equity.
• Establishing payment plans for homeowners with past-due real property taxes, the first time Baltimore has offered structured installment options for property taxes.

To learn more see the full press release