Buying a house in Annapolis means budgeting for more than just the mortgage principal and interest. In the Annapolis housing market, the median sale price for a home sits around $618,000, and local property taxes will add a noticeable amount to your monthly housing costs.

Maryland structures its real estate taxes differently than some other states - splitting the bill between state, county, and municipal levies. Knowing exactly what you'll owe to Anne Arundel County and the City of Annapolis is how you lock in an accurate housing budget before you make an offer.

Current Property Tax Rates in Annapolis and Anne Arundel County

Homeowners inside the Annapolis city limits pay a combined rate that covers state, county, and municipal charges. For fiscal year 2026, the Anne Arundel County property tax rate is $0.977 per $100 of assessed value, and the State of Maryland adds $0.112 per $100.

If your property sits within the City of Annapolis, an additional municipal rate applies - $0.7380 per $100 of assessed value. Add it all together and an Annapolis homeowner pays a total combined rate of $1.433 per $100.

How Local Rates Compare Statewide

Maryland's statewide average property tax rate is roughly 0.92 percent of a home's assessed value, with the effective rate closer to 0.95 percent. The Annapolis combined rate runs higher than that state average, specifically because of the added city municipal tax.

Worth knowing: the Annapolis city rate of $0.7380 per $100 has been flat since 2018, and the fiscal year 2027 budget plan proposes keeping it exactly there.

Calculating Your Annapolis Property Tax Bill

Maryland uses a tax rate per $100 of assessed value - not a mill rate. The math is straightforward: divide your home's assessed value by 100, then multiply by the combined tax rate.

The Maryland State Department of Assessments and Taxation (SDAT) determines that assessed value, and it's typically lower than what you paid for the house. SDAT reassesses properties on a three-year cycle based on market data and local sales trends.

Example Tax Bill on a Typical Home

Take a home with an assessed value of $600,000 inside the Annapolis city limits. Divide $600,000 by 100 to get 6,000. Multiply 6,000 by the combined city, county, and state rate of $1.433. Your estimated annual property tax bill: $8,598.

That's a real number to drop into your monthly budget spreadsheet.

Sales Tax Rules for Annapolis Residents

Buyers often ask about local sales taxes while they're tallying up cost-of-living figures. Maryland enforces a flat 6 percent sales tax rate on most goods and services statewide.

Local governments in Maryland - including Anne Arundel County and the City of Annapolis - can't layer on their own additional sales taxes. Whether you're shopping in the 21401 ZIP code or out in 21409, you're paying 6 percent. That's it.

Looking Up and Paying Your Tax Bill

Anne Arundel County handles billing and collection for most local property taxes, including the municipal taxes for Annapolis residents. Public property tax records and current bills are available through the county's online portal.

The most direct way to pay is through the Anne Arundel County Munis Self Service website. Search your property by address to view past payments, current balances, and print copies of your tax records.

Managing Due Dates and Escrow

Most buyers roll their property taxes into their monthly mortgage payment through an escrow account. If you go that route, your mortgage servicer pulls the funds and pays the county directly - you don't have to think about it.

If you're paying out of pocket, keep an eye on the Munis portal for your specific billing cycle. Missing a payment deadline means interest and penalties get added to your bill.

Exemptions to Lower Your Property Tax

Maryland offers several programs to help homeowners manage their tax burden. The one most buyers ask about first is the Homestead Tax Credit, which limits how much your taxable assessment can increase each year on your primary residence.

Every county in Maryland must cap that annual increase at 10 percent or less. Anne Arundel County caps the county portion at 2 percent, and the City of Annapolis caps its municipal increase at 10 percent.

Income-Based Credits and SDAT Appeals

The state also provides the Homeowners' Property Tax Credit, which sets a ceiling on your property tax bill based on your household income. Neither credit applies automatically when you buy - you have to apply through SDAT.

If you think SDAT has overvalued your home, you can appeal your assessment. You'll need to bring recent comparable sales data showing that similar homes in your Annapolis neighborhood sold for less than your assessed value.

New Construction and Special Assessments

Newly built homes and properties in newer subdivisions come with their own tax wrinkles. New construction is initially assessed based on the value of the unimproved land, then a supplemental assessment gets added once the home is finished.

You'll also want to check for special taxing district fees or Front Foot Benefit Charges (FFBC) - annual fees attached to the property to cover the cost of installing public water and sewer infrastructure.

Factoring in Front Foot Benefit Charges

Unlike standard property taxes, a Front Foot Benefit Charge is often paid directly to a private utility construction company rather than the county. These charges typically run for 20 to 40 years before they're paid off.

Sellers are legally required to disclose any FFBC or special assessments before you sign a contract. Factor this yearly charge into your housing budget the same way you would any other recurring property cost - because functionally, that's exactly what it is.

Comparing Taxes Across Maryland

Property tax rates vary by county. The combined rate inside Annapolis is $1.433 per $100 of assessed value, but neighboring jurisdictions land at different numbers.

Talbot County currently has the lowest property tax rate in the state at just 0.56 percent. Somerset County records the lowest median property taxes paid in Maryland at $1,591 annually.

The Highest Rates in the State

Baltimore City carries the state's highest property tax rate at 1.37 percent, before factoring in the state tax. Howard County residents pay the highest median property taxes in Maryland at $6,987 per year.

One more figure worth having: moving just outside the Annapolis city limits into unincorporated Anne Arundel County removes that municipal tax layer entirely, dropping the combined rate to $1.089 per $100 of assessed value. That's a real difference for buyers who don't need to be inside the city center.

Frequently Asked Questions

What is the combined city and county property tax rate for homes located inside Annapolis city limits?

It's $1.433 per $100 of assessed value. That includes the Anne Arundel County rate of $0.977, the State of Maryland rate of $0.112, and the Annapolis city rate of $0.7380.

How do I apply for the Homestead Property Tax Credit for my primary residence in Annapolis?

You submit an application directly to the Maryland State Department of Assessments and Taxation (SDAT). The credit caps your county tax assessment increases at 2 percent and city increases at 10 percent annually.

When are property tax bills mailed out and when are they due for Annapolis homeowners?

It depends on your specific billing cycle. Search your address in the Anne Arundel County Munis Self Service portal to see your current bill and exact due dates.

How do I appeal my property tax assessment if I believe my Annapolis home is overvalued?

File an appeal directly with SDAT after you receive your reassessment notice. You'll need recent sales data for comparable Annapolis homes to support your argument that the assessed value is too high.

How are property taxes prorated between the buyer and seller at closing when buying a house in Annapolis?

Taxes are split based on the exact closing date. The seller covers the portion of the year they owned the home; you cover the remainder of the tax year.

Do Annapolis properties have hidden front foot benefit charges or special taxing district fees?

Some do - particularly newer construction homes with recently installed water and sewer lines. Sellers are required to disclose any Front Foot Benefit Charges before you sign a purchase contract.