Property tax assessments in Maryland will climb sharply in 2024, reflecting the state’s tight housing inventory and rising home prices and leading to higher tax bills for many owners.
The total assessed value on residential and commercial property around the state rose 23.4%, according to the State Department of Assessments and Taxation, or SDAT.
The state appraises its more than 2 million property accounts once every three years, splitting properties in each county and Baltimore City into three groups with one group getting reassessed each year.
The overall statewide increase for the 767,226 properties reassessed for 2024 exceeded 2023’s jump of 20.6%, state figures released Friday show. The current group of properties — Group 3 — was last assessed three years ago in January 2021, when the announced increase value on the same residential and commercial property was 8.1%.
Those property owners can expect their tax bills soon. Assessment notices were mailed out Thursday. Appeals must be filed within 45 days of the date on the notice.
Homes jumped an average 25.6% in value in the current assessment, while commercial properties rose 17.6% over the three-year period.
In Baltimore City, the increases were below the statewide average as home assessments increased 19.4% and commercial properties increased 16%. In Baltimore County, residential properties increased at a rate above the statewide average, at 26.2%, but commercial properties increased by just 14.4%.
The combined residential and commercial average increase for Baltimore City, at 17.9%, was less than last year’s 21.6% average increase. Baltimore County’s combined average increase of 23.3% was more than last year’s 16.4% increase.
“For six consecutive years, all 23 counties and Baltimore City have experienced an increase in residential and commercial property values, indicating that owning a home or business in Maryland continues to be a good investment,” said Michael Higgs, director of the department of assessments, in a press release.
The 2024 assessments were based on an evaluation of 85,904 sales that occurred within the group over the last three years.
If an owner’s property value goes up as a result of the reassessment, that increase will be phased in equally over the next three years. However, state law caps the taxable portion of the increase at 10% annually, and many local governments have implemented even smaller maximum taxable increases. In Baltimore City and Baltimore County, for example, the taxable assessment cap is 4% annually, so eligible property owners may not see their taxes rise at the same rate as their assessment over the next three years.
Most homeowners, or nearly 97% of the total group assessed, saw their home values increase. Any loss of value will be fully reflected in the 2024 tax year.
The average jump varied widely depending on the area of the state.
Worcester County, on the Eastern Shore, and Garrett County, in Western Maryland, saw the largest combined increases for residential and commercial properties, at 46.1% and 44.2%, respectively. Home assessments jumped in Somerset County more than anywhere else, by 51.4%, while Worcester County’s 32.5% jump was the most for commercial properties.
The assessments department has revamped its property tax notices, which now include information about the state’s homeowners’ and homestead tax credits. Those credits save Maryland property owners more than $260 million in taxes each year, the department said.