Maryland senior property tax relief runs mainly through the Homeowners' Property Tax Credit, which limits property tax to a percentage of household income up to a $60,000 income ceiling. The credit (HOTC), administered by the Maryland State Department of Assessments and Taxation, sets a tax limit from your income and pays the property tax above it, figured on no more than $300,000 of your home's assessed value. The filing deadline is October 1.

In This Guide

How Maryland Senior Property Tax Relief Works

Maryland's main property tax relief for homeowners is a credit tied to income. The Maryland State Department of Assessments and Taxation (SDAT) uses a formula to set the most property tax a household should pay given its income. If your actual bill is higher than that limit, the HOTC pays the amount above it.

That makes it income-indexed rather than age-indexed. The requirements cover income, net worth, and the home itself, not age, so you don't have to be a senior to apply. For a senior on a fixed income, a limit tied to income is the part that matters.

Who Qualifies

SDAT lists four requirements, and all four have to be met. Two are financial and two are about the property itself.

Income. Your combined gross household income cannot exceed $60,000. That means total combined gross income before any deductions, from all sources whether or not taxable, for the homeowner, the spouse, and every other household occupant over 18 who is not a dependent and does not pay rent or room and board. Nontaxable retirement benefits count: Social Security and Railroad Retirement must be reported.

Net worth. Your net worth cannot exceed $200,000, not counting the value of the property you're claiming the credit on or any qualified retirement savings or IRAs. If your net worth above those exclusions exceeds $200,000, you don't qualify even if your income is low.

A legal interest in the property. Land installment sales, contract purchases, holders of a life estate, and beneficiaries of certain trusts all count as a legal interest. Heirs who don't yet hold official record title may qualify for up to 3 taxable years while the title transfer is finalized, if they verify their legal interest and meet the same requirements.

Principal residence. The dwelling has to be where you live for more than six months of the tax year, including July 1, unless you can't because of illness or a need for special care, or you bought the property recently. That illness exception matters for a homeowner who has moved into care partway through the year.

The Formula in Plain Terms

The formula works in income brackets, each with its own rate. Here's how the obligation is calculated for a household:

The two examples below run the formula at the $60,000 ceiling and at $30,000.

If your actual property tax bill exceeds that maximum obligation, the credit pays the property tax above it. If your bill is already at or below the formula amount, no credit is issued.

One limit matters if your home is assessed at a high value. The credit is computed on the lesser of $300,000 of assessed value or the total assessed value minus any Homestead Credit. On a home assessed above that, the credit is figured on only part of the bill, so don't count on it to cover everything over your tax limit. The Homestead Credit is a separate state credit for large assessment increases on a principal residence: it limits how much your taxable assessment can rise each year, every Maryland county and municipality must hold that rise to 10% or less a year, and it takes a one-time application.

Maryland Senior Property Tax Relief at a Glance

Feature Detail
Program name Homeowners' Property Tax Credit (HOTC)
Income limit Combined gross household income cannot exceed $60,000
Net worth limit $200,000, excluding the home and qualified retirement accounts or IRAs
Key dates File by April 15 for the credit on the July 1 bill; October 1 deadline each year
Administering agency Maryland State Department of Assessments and Taxation (SDAT)
Assessed value used The lesser of $300,000 or the total assessed value minus any Homestead Credit
Formula 0% on first $8k; 4% on next $4k; 6.5% on next $4k; 9% above $16k up to limit
Application form Form HTC-1, which also applies for the county supplemental credits
Residence test Principal residence for more than six months of the tax year, including July 1, with exceptions for illness, need of special care, or a recent purchase
Legal interest Includes land installment sales, contract purchases, holders of a life estate, and beneficiaries of certain trusts
Heirs without record title May qualify for up to 3 taxable years while the title transfer is finalized

What Your County Adds on Top of the State Credit

The HOTC is the state-level floor, and a number of jurisdictions layer a supplemental credit on top of it. You do not file a second state form for it. The same HTC-1 application applies for the county supplemental credits.

A number of Maryland counties and Baltimore City offer a supplemental credit. Ask SDAT or your county finance or assessment office whether yours takes part.

Apply even if you think you earn too much. SDAT states that some applicants may be eligible for a supplemental tax credit even though they may be ineligible for the state credit on income. If you are over the $60,000 ceiling and your county offers a supplemental credit, file the application anyway.

Counties may also run their own separate senior tax credits with their own rules, so any senior should check their own county's senior tax credit. Because local terms are set locally and can change, confirm the current figures with your own county finance or assessment office (or, in Baltimore City, the city tax office) before you file.

How to Apply

1
Step 1

Gather your income and net worth records

SDAT counts total combined gross household income before any deductions, from all sources whether or not taxable, so pull your tax return, Social Security statement, and pension letters. Also estimate your net worth, excluding your home's value and qualified retirement accounts, and confirm it does not exceed $200,000.

2
Step 2

Complete Form HTC-1

One application applies for both the state credit and the county supplemental credit in the jurisdictions that offer one. File the 2026 HTC-1 online at taxcredits.sdat.maryland.gov, or mail it to the Department of Assessments and Taxation, Homeowners' Tax Credit Program, P.O. Box 49005, Baltimore, Maryland 21297. SDAT says mailed applications take longer to process than online ones, and it will not accept applications or supporting documents sent by email. SDAT's Homeowners' Property Tax Credit page carries the current application and filing instructions.

3
Step 3

File by April 15 to see the credit on your July bill

A properly completed application submitted by April 15 that is not selected for audit puts the credit on your July 1 tax bill. File later, up to the October 1 deadline, and you receive any credit due as a revised tax bill instead.

4
Step 4

Check the year on the form

The application is dated by year: the 2026 HTC-1 carries a filing deadline of October 1, 2026. SDAT says the credit is not automatically granted: each person must apply and disclose their income, and the deadline to apply is October 1st of each year. Set a reminder for early spring so you have time to gather documentation.

If you have questions about the application or your household's qualifying income, contact SDAT's Homeowners' Tax Credit Program by email at sdat.homeowners@maryland.gov or by phone at 410.767.4433 (Baltimore area) or 1.800.944.7403 toll free. If property taxes are part of a broader question about paying for care, the options in how to pay for senior care connect tax savings to the larger financial picture.

Not sure which county credits stack on top of the HOTC? Chat with Brevy's care navigator to sort out your options.

Frequently Asked Questions

Do I have to be a certain age to qualify for the HOTC?

No. The four requirements cover income, net worth, a legal interest in the property, and principal residence, and none of them is an age. Any homeowner who meets all four can apply.

Does Social Security count toward the $60,000 income limit?

Yes. Maryland uses gross household income from all sources, which includes Social Security benefits. Total it all before comparing against the $60,000 ceiling.

What happens if I miss the October 1 deadline?

October 1 is the filing deadline for the year's credit, so don't plan on filing after it. If you've missed it, ask SDAT what your options are and get the next year's application in early. Filing a complete application by April 15 is safer for the deadline, and unless it is selected for audit, it gets any credit onto your July 1 bill.

What happens to the credit if the homeowner dies?

The program's four requirements are the same for every applicant, so a surviving spouse who stays in the home is measured against them like any other homeowner. Those are a legal interest in the property, principal residence, household income that cannot exceed $60,000, and net worth that cannot exceed $200,000 for the state credit (in a county that offers a supplement, some homeowners over the income limit may still qualify for it). If record title has not yet passed, that need not stop the claim: SDAT allows heirs who do not yet hold official record title to qualify for up to 3 taxable years while the transfer is finalized, provided they verify their legal interest and meet the same requirements. Before the October 1 deadline, ask SDAT how a deceased spouse's income is treated on the application.

How does Maryland count irregular or variable income?

Maryland counts total combined gross household income before any deductions, from all sources whether or not taxable, so irregular income, such as freelance earnings, part-time wages, or variable pension and retirement-account distributions, all counts toward the $60,000 ceiling. On the 2026 application, the credit is calculated on gross household income for calendar year 2025. Total the actual amounts from your tax return and 1099s rather than estimating a monthly average. If you are unsure how a particular source is counted, ask SDAT.

Can I use the HOTC if my home is in a trust or a life estate?

A life estate gives you the legal interest the program requires, and some trusts do too. SDAT counts land installment sales, contract purchases, holders of a life estate, and beneficiaries of certain trusts as having a legal interest in the property. Which trusts qualify is the part to confirm, so contact SDAT with your trust's terms before you assume your arrangement is out. The other three requirements still apply.

Next Steps

Work through the four filing steps above, and aim for April 15 rather than October 1 so any credit can land on your July 1 bill instead of arriving later as a revised one. Then ask your county finance office whether it runs a separate senior credit of its own.

The HOTC is not Maryland's only property tax relief. The state also exempts from property tax the dwelling house a disabled veteran owns, when the application requirements are met. Among other conditions, the veteran must have been honorably discharged or released under honorable circumstances, and the U.S. Department of Veterans Affairs must have declared a permanent 100 percent service-connected disability not caused by the veteran's own misconduct. A qualifying surviving spouse who owns the home can also receive it. Our guide to the disabled veteran property tax exemption in Maryland covers who qualifies and how to apply.

If selling the home is on the table, first work out what the HOTC leaves you paying to stay: at a $30,000 household income the formula sets your tax limit at $1,680. Our guides on selling or renting your home for care and reverse mortgages for senior care both cover how home equity fits into care financing.

Learn More

FinancialHow to Pay for Senior Care in MarylandHow to pay for senior care in Maryland in 2026: real costs, Medicare's limits, Medical Assistance for long-term care, VA Aid and Attendance, and LTC insurance. FinancialMaryland Retirement Income TaxMaryland exempts Social Security. Its Pension Exclusion, up to $41,200 at 65 or if you or a spouse is totally disabled, is cut by Social Security received. FinancialMaryland Estate TaxMaryland taxes estates over $5M, capped at 16% of the excess, and charges a separate 10% inheritance tax on heirs outside the close-family list. FinancialSenior Property Tax Relief by StateWhich states freeze property taxes for seniors, where low-income seniors can owe none, and how exemptions, credits and deferrals work, plus a guide per state. FinancialHow to Pay for Senior CareHow to pay for senior care: what it costs nationally and how Medicaid, Medicare, VA benefits, and private pay each fit. Who qualifies, what's covered, in 2026. FinancialSelling or Renting Your Home for CareSelling or renting the home to pay for senior care: the capital-gains exclusion, SSI and Medicaid home rules, rent-vs-sell, and the step-up in basis. FinancialReverse Mortgages for Senior CareHow a reverse mortgage (FHA HECM) can pay for senior care, why it fits in-home care and a remaining spouse, and why it rarely works for a nursing home.

Find personalized help lowering your Maryland property tax bill at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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