The Board of Public Works (BPW) voted this week to maintain the State property tax rate for fiscal 2027, keeping rates unchanged at 11.2 cents per $100 of assessed value for real property and 28.0 cents per $100 for public utility property.

The three-member board approved the rates unanimously, following a recommendation from the Commission on State Debt.

The State property tax supports debt service on general obligation bonds, which fund capital investments such as school construction, public facilities, and infrastructure. However, the current rate does not generate sufficient revenue to cover those obligations fully.

For fiscal 2027, projected property tax revenues total nearly $1.2 billion, falling short of debt service costs by roughly $320 million. The State will cover that gap with general fund support. Projections show similar shortfalls in the following two years, with the gap widening again later in the decade.

The Commission on State Debt recommended maintaining the current rate structure on April 9, citing the need to balance affordability concerns with the State’s ongoing debt obligations. The BPW’s action formalizes that recommendation ahead of Maryland’s upcoming bond sale and continued engagement with credit rating agencies.

The BPW includes Governor Wes Moore, Comptroller Brooke Lierman,  and Treasurer Dereck Davis, and sets the annual property tax rate used to support State debt.

Visit the Board of Public Works website for more information.