Maryland Homestead Exemption: Tax Credit, Deadline and How to Apply

Maryland does not have a general homestead exemption that takes a fixed dollar amount off every homeowner's assessed value. What Maryland calls its homestead program is the Homestead Property Tax Credit under Md. Code, Tax-Property § 9-105: a credit on your property tax bill that limits how much the taxable assessment on your principal residence can rise each year. For the State property tax the limit is 10%, and each county and municipality sets its own limit of 0% to 10%. You apply once to the State Department of Assessments and Taxation (SDAT), and the statute sets the filing date as on or before May 1 before the first taxable year for which you want the credit. For other states, see our guide to homestead exemptions by state.

Information last verified on October 7, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Maryland's Homestead Property Tax Credit (Md. Code, Tax-Property § 9-105), the Homeowners' Property Tax Credit (Tax-Property § 9-104), the disabled veteran exemption (Tax-Property § 7-208), the blind individual exemption (Tax-Property § 7-207), the bankruptcy residence exemption in Courts and Judicial Proceedings § 11-504, and the family allowance in Estates and Trusts § 3-201. It does not give any county's or city's current homestead credit percentage, does not cover local-option credits beyond a brief note on county supplemental Homeowners' credits, and does not cover business or rental property or other states' laws.

Does Maryland have a homestead exemption?

Not a general dollar exemption. Maryland's main statewide breaks for homeowners include four programs. The Homestead Property Tax Credit caps the growth of the taxable assessment on your home. The Homeowners' Property Tax Credit is an income-tested credit against your tax bill. A separate statute fully exempts the home of certain disabled veterans, disabled active duty service members and qualifying surviving spouses from property tax (Tax-Property § 7-208). And the home of a blind owner, or of a blind owner's surviving spouse who has not remarried, is exempt from property tax to the extent of $40,000 of its assessment (Tax-Property § 7-207).

Section 9-105 names the program directly:

"The tax credit under this section shall be known as the homestead property tax credit."

The credit is applied for, not automatic. SDAT describes the program as one that "requires all homeowners to submit a one-time application" (SDAT Homestead Tax Credit program).

How the Maryland homestead tax credit works

The homestead credit does not lower your assessment. It limits how much of an assessment increase you are taxed on in a given year. Under § 9-105, the credit equals the tax on the part of your current assessment that is above your prior year's taxable assessment multiplied by the homestead credit percentage (Tax-Property § 9-105).

The statute sets that percentage differently for each level of government:

In the statute's words, the local percentage "may not be less than 100% or exceed 110% for any taxable year" and "shall be expressed in increments of 1 percentage point." Because each county and municipality chooses its own figure for each taxable year, this page does not list local percentages. Ask SDAT or your county for the percentage that applies to the current tax year.

The credit applies against the State, county and municipal property tax on the real property of the dwelling, and § 9-105 requires it to be included on your property tax bill. Because the comparison is with your prior year's taxable assessment, which already excludes the part of your assessment the credit shielded, the capped base carries forward from year to year. The credit is zero only in a year when your current assessment is no more than the prior taxable assessment times the credit percentage. After a run of large increases, the credit can continue even in a year your assessment rises little or not at all.

Who is eligible for the homestead credit

The credit is for a homeowner's principal residence. Section 9-105 covers owners holding a legal interest in the home, including sole owners, joint tenants, tenants in common, tenants by the entirety, cooperative owners, buyers under a land installment contract, life tenants and certain trusts (Tax-Property § 9-105).

The home must be your principal residence, occupied for more than 6 months of a 12-month period. The statute adds two firm rules:

• "A homeowner must actually reside in the dwelling by July 1 of the taxable year for which the property tax credit under this section is to be allowed."
• "A homeowner may claim a property tax credit under this section for only 1 dwelling."

There is no income limit and no home value limit for the homestead credit. The statute does withhold the credit for the year after certain events, including a transfer of the dwelling for consideration to new ownership, a rezoning the owner requested that raised the value, a substantial change in the property's use, and a clearly erroneous assessment.

How and when to apply

You apply to SDAT on the Application for Homestead Tax Credit Eligibility. The form says: "You may file this application online at onestop.md.gov (recommended)." On Maryland OneStop it appears as the Homestead Tax Credit Eligibility Application (SDAT homestead application).

SDAT lists these contacts for homestead questions: sdat.homestead@maryland.gov, 410-767-2165, or toll-free 1-866-650-8783.

Deadline. Section 9-105 says the application must "be filed on or before the May 1 preceding the first taxable year for which the property tax credit under this section is to be allowed." If you missed it, the statute provides a limited catch-up: when SDAT finds you were eligible for the prior taxable year but did not file, "the homeowner shall be retroactively qualified for the Homestead Property Tax Credit Program for the prior taxable year" (Tax-Property § 9-105).

Renewal. You do not refile each year. The application states: "The Homestead Credit Eligibility stays in place as long as the dwelling remains your primary residence." SDAT may ask you to verify eligibility in future years (SDAT homestead application).

To check the assessment record for your parcel before you apply, see our guide to Maryland property records.

Buying, selling and losing the credit

The homestead credit is not portable. Section 9-105 does not grant the credit for the year after "the dwelling was transferred for consideration to new ownership," so a buyer applies on their own and starts from a new assessment base (Tax-Property § 9-105). If you move, your eligibility follows the home you actually live in, and you may claim the credit on only one dwelling.

Claiming a credit you were not entitled to has consequences. Under § 9-105, you owe the tax for each year you did not qualify. If the claim involved a willful misrepresentation, the statute adds a penalty: the person "shall be assessed a penalty equal to 25% of the amount of the property tax credit received during each taxable year for which the person did not qualify." The amount is itemized on the tax bill and is a lien on the property, and the assessment can be appealed under Tax-Property § 14-506.

Homeowners' Property Tax Credit (income-tested)

The Homeowners' Property Tax Credit is a different program from the homestead credit, and many Maryland owners qualify for one but not the other. Section 9-104 states: "The homeowners' tax credit under this section is a State-funded program" (Tax-Property § 9-104). SDAT describes it as providing "credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income" (SDAT tax credit programs). This page does not reproduce the § 9-104 formula; SDAT's application and program page explain how the credit is calculated.

SDAT's program page lists these requirements (SDAT Homeowners' Property Tax Credit):

• "Your combined gross household income cannot exceed $60,000."
• Your net worth, not counting the home and qualified retirement accounts, "must be less than $200,000."
• The home must be your principal residence, occupied at least six months of the year, including July 1.
• There is no minimum age.

How and when to apply. You apply to SDAT online through Maryland OneStop or on paper with the HTC-1 form, which SDAT publishes in English and Spanish. The 2026 form reads "Filing Deadline October 1, 2026" (2026 HTC-1 application), and SDAT's program page states: "The deadline to apply is October 1st of each year." Questions go to sdat.homeowners@maryland.gov.

Renewal. Unlike the homestead credit, this credit is applied for each taxable year. Section 9-104 sets the deadline as on or before October 1 of the taxable year for which the credit is sought, and SDAT says: "The Homeowners' Tax Credit is not automatically granted and each person must apply and disclose their income." A homeowner whose income comes only from Social Security, a pension or an annuity files the full application in the first year and every third year after that. In the years between, that homeowner files either the application or a certification that they lived in the home at least 6 months of the preceding calendar year, still had income only from those sources, and had no change in the people living in the household (Tax-Property § 9-104).

Late applications. For good cause, SDAT may accept an application after October 1 but on or before October 31 of the taxable year. The statute also lets SDAT accept some later applications, for example within 1 year after April 15 of the taxable year from a first-time applicant, or from a homeowner who filed on time in each of the 3 preceding years. SDAT advises filing by April 15 "so that any credit due to you can be deducted beforehand from your initial July tax bill."

County supplemental credits. Several counties, including Baltimore City and Montgomery County, add a local supplemental credit that SDAT administers through the same application. SDAT states: "Some applicants may be eligible for a supplemental tax credit even though they may be ineligible for a state credit based on income."

Disabled veteran and surviving spouse exemption

Maryland fully exempts certain homes from property tax under Tax-Property § 7-208. The statute provides that "a dwelling house is exempt from property tax if: (1) the dwelling house is owned by: (i) a disabled active duty service member; (ii) a disabled veteran," or by a qualifying surviving spouse who has not remarried (Tax-Property § 7-208).

A disabled veteran, for this purpose, is an honorably discharged veteran who "has been declared by the U.S. Department of Veterans Affairs to have a permanent 100% service connected disability." The home must be the owner's legal residence and be occupied by not more than two families. Apply on SDAT's Application for Exemption for Disabled Veterans (SDAT lists a separate application for the surviving spouse of a 100 percent disabled veteran), filed with the Supervisor of Assessments at the local assessment office. The form asks for a copy of the honorable discharge or DD-214 and the VA rating documentation (SDAT disabled veteran application).

Apply promptly. A disabled veteran or disabled active duty service member can get a refund of property tax paid while the exemption was available only if they apply within the 3-year period beginning with the calendar year they first became eligible. A qualifying buyer who applies within 30 days after settlement gets the exemption from the date of settlement (§ 7-208(f), (g)).

Blind individual exemption

Under Tax-Property § 7-207, "a dwelling house is exempt from property tax to the extent of $40,000 of its assessment if the dwelling house is owned by: (1) a blind individual; or (2) a surviving spouse." A surviving spouse here means the surviving spouse of a blind individual who has not remarried. The home must be the owner's legal residence and be occupied by not more than 2 families.

The statute defines a blind individual by visual-acuity and field-of-vision tests, and SDAT's Blind Persons Exemption Application requires a physician's certification. An owner may receive this exemption or the § 7-208 disabled veteran exemption, but not both (Tax-Property § 7-207; SDAT property tax exemptions).

Does the homestead credit protect your home from creditors?

No. The homestead tax credit is a property tax program. Protecting a home from creditors is governed by a different law, Courts and Judicial Proceedings § 11-504, and the two have nothing in common except a shared word.

Outside bankruptcy. Section 11-504(b) begins "The following items are exempt from execution on a judgment:" and lists personal property and a general allowance. It contains no homestead exemption for the home itself (Courts and Judicial Proceedings § 11-504). This page does not address how owning a home as tenants by the entirety affects a creditor of only one spouse; ask a Maryland lawyer about that.

In bankruptcy. Maryland has opted out of the federal exemption list: "In any bankruptcy proceeding, a debtor is not entitled to the federal exemptions provided by § 522(d) of the federal Bankruptcy Code." In their place, § 11-504(f) lets a debtor domiciled in Maryland exempt owner-occupied residential real property, including a condominium or a converted manufactured home, or a cooperative housing interest. The amount "may not exceed the amount under 11 U.S.C. § 522(d)(1), adjusted in accordance with 11 U.S.C. § 104." The Federal Register notice of that adjustment states: "Section 522(d) paragraph (1) was adjusted from $27,900 to $31,575," for cases filed on or after April 1, 2025 (Federal Register, February 4, 2025).

Two limits apply. A debtor cannot claim this exemption on a property if the debtor, or certain relatives listed in the statute, successfully claimed it on that property within the previous 8 years, and a husband and wife may not both claim it in the same bankruptcy. For how this fits with Maryland's other bankruptcy exemptions, see the Maryland bankruptcy guide.

Homestead rights after a death

Maryland's probate law has no homestead allowance as such. Under Estates and Trusts § 3-201, "A surviving spouse or registered domestic partner is entitled to receive an allowance of $10,000 for personal use," and each unmarried child under 18 is entitled to $5,000 (Estates and Trusts § 3-201). See Maryland probate for how estates are administered.

The November 2026 ballot

Maryland's November 3, 2026 general election ballot carries three proposed constitutional amendments: on state employee collective bargaining, substitute members of the Commission on Judicial Disabilities, and election districts. None of them concerns property tax or the homestead credit (2026 general election ballot).

Related

• Homestead exemptions by state
• Maryland bankruptcy laws
• Maryland probate
• Maryland property records

This article is general legal information about Maryland's Homestead Property Tax Credit, Homeowners' Property Tax Credit, disabled veteran and blind individual exemptions and related law (Md. Code, Tax-Property §§ 9-105, 9-104, 7-208 and 7-207; Courts and Judicial Proceedings § 11-504; Estates and Trusts § 3-201), verified on October 7, 2026. It is not tax or legal advice. For your situation, contact the Maryland State Department of Assessments and Taxation (SDAT) or a lawyer licensed in Maryland.

Last updated: October 7, 2026.

Frequently Asked Questions

Does Maryland have a homestead exemption?

Not in the sense of a flat dollar amount taken off every homeowner's assessed value. Maryland's homestead program is the Homestead Property Tax Credit (Md. Code, Tax-Property § 9-105), which limits yearly increases in the taxable assessment of your principal residence, plus the income-tested Homeowners' Property Tax Credit (§ 9-104). Separate exemptions cover certain disabled veterans (§ 7-208) and blind owners, whose home is exempt to the extent of $40,000 of its assessment (§ 7-207).

How much is the homestead tax credit in Maryland?

It depends on how much your assessment rises. The credit equals the tax on the part of your new assessment above your prior taxable assessment multiplied by the homestead credit percentage: 110% for the State tax, and a locally set 100% to 110% for county and municipal tax (§ 9-105). In a year your current assessment is no more than your prior taxable assessment times that percentage, the credit is zero.

What is the homestead cap in my Maryland county?

Each county and municipality sets its own homestead credit percentage between 100% and 110% for each taxable year, so the local cap can be anywhere from 0% to 10%. Ask SDAT or your county for the percentage that applies to the current tax year.

When is the deadline to file for the homestead tax credit in Maryland?

Under Tax-Property § 9-105, the application must be filed on or before the May 1 preceding the first taxable year for which the credit is to be allowed. If SDAT finds you were eligible for the prior taxable year but did not file, the statute makes you retroactively qualified for that prior year.

Do I have to reapply for the homestead credit every year in Maryland?

No. It is a one-time application, and SDAT states that eligibility stays in place as long as the dwelling remains your primary residence. SDAT may ask you to verify eligibility in later years.

What is the deadline for the Maryland Homeowners' Property Tax Credit?

Tax-Property § 9-104 sets the deadline as October 1 of the taxable year, and the 2026 HTC-1 application listed a filing deadline of October 1, 2026. You apply each year, and SDAT may accept a late application for good cause through October 31. SDAT lists a combined gross household income limit of $60,000 for the State credit; some counties add a supplemental credit through the same application.

Is there a property tax exemption for disabled veterans in Maryland?

Yes. Under Tax-Property § 7-208, a dwelling house is exempt from property tax if it is owned by a disabled active duty service member, by a veteran the U.S. Department of Veterans Affairs has declared to have a permanent 100% service-connected disability, or by a qualifying surviving spouse, and the application requirements are met.

Does the Maryland homestead credit protect my house from creditors?

No. The homestead credit is a property tax program only. Outside bankruptcy, Courts and Judicial Proceedings § 11-504 contains no homestead exemption for the home; in a bankruptcy case, a Maryland debtor can exempt an owner-occupied residence up to the federal § 522(d)(1) amount, $31,575 for cases filed on or after April 1, 2025.