Montgomery County homeowners who have a limited income or are at least 70 years of age may be eligible for property tax credits that will limit the amount of taxes they must pay. One application will determine eligibility for three programs -- the Maryland Homeowners’ Property Tax Credit Program; the Montgomery County Supplemental Property Tax Credit; and the Montgomery County Senior Property Tax Credit.
Property owners who have applied for a tax credit previously and been denied are encouraged to apply again, since the tax credit programs have changed and been improved over the years, and your income situation may have changed.
In order to be eligible for the Maryland Homeowners’ Property Tax Credit and the County Supplemental Property Tax Credit, a homeowner must:
• Have an annual household income of about $64,000 or less;
• Own and live in their home in Montgomery County;
• Must have lived in that home for at least six months, or will live in it for six of the next 12 months;
• The combined net worth of everyone in the household must not exceed $200,000. This does not include the value of the principal residence or the cash value of any qualified retirement savings or individual retirement accounts. It does include any other real estate or investments that are owned;
• Only the first $300,000 of the home’s assessed value counts towards these credits;
• The cities of Gaithersburg and Rockville provide additional tax credits to their homeowners under similar programs.
Homeowners who are at least 70 years of age will automatically receive the Montgomery County Senior Property Tax Credit if they already receive either or both of the Maryland and Montgomery County Tax Credits.
Homeowners who file and qualify before May 1 will receive the tax credit directly on their annual tax bill. Those who file later -- but before the September 1 deadline -- will receive either a “revised” tax bill that reflects the credit amount or a refund if the taxes have already been paid in full.
To apply for these tax credits, homeowners must fill out one application form each year. Application forms are available by calling the Maryland State Department of Assessments and Taxation (SDAT) at 1-800-944-7403, or by downloading the form and instructions from the SDAT website at www.dat.state.md.us/sdatweb/htc.html.
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