You can do something today that only takes a few minutes and will save you money and stress in the future. (I bet you weren't thinking we would be talking about property taxes?!) The Homestead Exemption reduces the assessed value of your home and helps homeowners save money on property taxes. As an MD homeowner, you can apply for the Homestead Tax Credit to take advantage of this opportunity to save money on your property taxes.

Don't miss out on this opportunity to save money on your property taxes! Read on for the details on how to apply for the MD Homestead Tax Credit:

What is the homestead tax credit? (https://dat.maryland.gov/realproperty/pages/maryland-homestead-tax-credit.aspx)

It limits the increase in taxable assessments each year to a fixed percentage. Every county and municipality in Maryland is required to limit taxable assessment increases to 10% or less each year. So if your assessment went up by more than 10%, you would not pay tax on the market value increase, which is above the limit.

For example, if your $100,000 assessment rose to $120,000, that’s a 20% hike. The tax credit would prevent any increase above 10% or $110,000 and would apply to the taxes due on the amount above that or $10,000 in this example. At a tax rate of $1.04 per $100 of assessed value, the tax credit would be $104.

PLEASE, please note. A tax assessment is the state’s estimate of what your house is worth for taxation purposes. It has absolutely no bearing on market value. I can estimate your home value for resale purposes at any time or help with comparables for a refinance, but please don’t confuse the tax-assessed value with your home’s actual market value. (Most home buyers would prefer the former to be as low as possible and the latter as high as possible!)

After your deed goes on record, you should get a notice from the State of Maryland that you’re eligible to apply. This credit applies to your primary residence only, and you must have lived in it for at least 6 months of the year, including July 1 of the year for which the credit is applied. You can check to see if your deed is on record in the Maryland Land Records (https://mdlandrec.net/main/) or just ask your title company to check for you.

How do you know if you have already applied? Two ways. One, check your property tax reassessment notice. It will say “Homestead Application Approval” - YES or NO. Two, check your property on the MD State Department of Assessments and Taxation website, SDAT (https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx). After you select your county and search by address, scroll down to the bottom and look in the “Homestead Application Information” section.

How do you apply if you need to? Download a PDF application form and mail it in (link: https://dat.maryland.gov/SDAT%20Forms/Homestead_application.pdf), even FAX it in to 410-225-9344 if that’s how you roll or apply online - https://sdathtc.dat.maryland.gov.

While it can take up to a year to process, once it’s approved, it lasts as long as you own the property. You will not get any kind of notification - you’ll have to look on SDAT.

Go apply today! Next time your assessment rises, you’ll be happy you did.

And if you have any questions, reach out to me anytime at 443.803.7620 or jen@thejenholdengroup.com.

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Jen Holden, Realtor® | Principal

the Jen Holden Group of Compass

443.803.7620 (m) | 410.429.7425 (o)

license #639966

jen@thejenholdengroup.com

www.movewithjhg.com