What is the Homestead Tax Credit and how do I apply?
The Homestead tax credit limits the increase in the value of the actual property tax a person actually pays is computed. In Baltimore County, the current homestead cap is 4%.
You receive an application to apply for the Homestead Tax credit when your house is reassessed every three years and at the time of sale when buying a house.
For those new homeowners, however, the new owner must be in the house for a year before becoming eligible for the tax credit. For example, if you buy a house in December, and you apply, the credit wouldn’t take effect until July of the following year.
The homestead tax credit is based on ownership and occupancy. In order to be eligible, you must live in the house.
The credit really helps to keep your property tax bill down with that 4% limit on assessment increase!
This chart shows the property tax computation with a decrease in value. This shows you the significant difference in amount of taxes you would pay if you did not receive the Homestead Tax Credit! Most of the years, it is anywhere from $80-400 difference, but years 3 & 4 show a savings on taxes of about $1700!
Here is an article to find out how your Baltimore County tax assessment is determined.
To determine if you are eligible for the homestead tax credit reduction, here is a link to the application.
If you feel your assessment may be too high, and would like to appeal a Baltimore County tax assessment, read more and determine if it may be the right route for you.
Please let me know how I can help you with your Baltimore County home!