How to Save Money on Property Taxes: Apply for the Homestead Tax Credit
Did you know that if you qualify for the Homestead Tax Credit you could be eligible to receive approximately $692 on your property taxes each year.
In order to qualify, the property must be your primary residence and lived in at least six months out of the year. If you recently purchased a property, you must live in the property one fiscal tax year prior to being eligible for this credit. For further information on this credit, you can call 1-866-650-8783 or email at firstname.lastname@example.org.
This tax credit assists homeowners like you with assessment increases on your primary residence by limiting the increase in taxable assessments to a fixed percentage. This can give homeowners a substantial annual tax break on their property tax bills.
Let’s look at an example (taken from the MD Department of Assessments & Taxation):
Assume that your old assessment was $100,000 and that your new phased-in assessment for the 1st year is $120,000. An increase of 10% would result in an assessment of $110,000. The difference between $120,000 and $110,000 is $10,000. The tax credit would apply to the taxes due on the $10,000. If the tax rate was $1.04 per $100 of assessed value, the tax credit would be $104 ($10,000 ÷ 100 x $1.04).
In essence, this tax exemption is removing a part of the value of your assessed property from taxation and lowering your overall tax payment.
So how do you apply? If you have not already applied for this exemption, we encourage you to submit a one-time application in order to receive this credit. The application can be found by clicking this link. If you are unsure if you have filed for this credit, take a look in the Real Property Database to determine the status of your application.
To apply, you must file the completed application with all required documentation between January 1 - April 30 of the year for which you are requesting an exemption.
Don't wait, apply now for this credit and start saving money on your property taxes!