Homeowners Tax Credit
The State of Maryland has an income based Homeowners Tax Credit program which allows credits against the property tax bill.
The program sets a limit on the amount of property taxes any homeowner must pay
on their principal residence based upon their income.
This plan is sometimes commonly known as the "circuit breaker" plan.
The Homeowners Tax Credit program is available
to all homeowners regardless of their age, and the credits are applied based upon the person's income.
Note that this program is separate and distinct from the Homestead Tax Credit program.
How is the Credit figured?The tax credit is based upon the amount by which the property taxes exceed a percentage of your combined household income according to the following formula:
0% of the first $8,000.00 of income
4% of the next $4,000.00 of income
6.5% of the next $4,000.00 of income
9% of all income above $16,000.00
What Are The Basic Requirements?Before your eligibility according to income can be considered, you must meet four basic requirements:
You must own or have a legal interest in the property.
The home must be your principal residence where you live at least six months of the year, including July 1.
Your net worth, not including the value of your home or any qualified retirement savings, must be less than $200,000.00.
Your combined gross household income cannot exceed $60,000.00.
See the Homeowners Tax Credit application for a further explanation of the above requirements and any other limitations.