If you were surprised last month to see an increase in your residential real estate property tax assessment sent by the state, you’re not alone.
Assessments are up an average of about 20.1% from three years ago across the state, according to the Maryland Department of Assessments and Taxation. That number is slightly lower for Montgomery County at 17.7%, according to Michael Coveyou, the county’s finance director.
“Out of the 23 counties and Baltimore City, we have the lowest [increases] here,” Coveyou told Bethesda Today in an interview Friday.
Property tax assessments are distributed in three groups by the Maryland Department of Assessments and Taxation, so a third of Maryland homeowners received a new assessment for 2025 in December. According to a news release from the assessments and taxation department, 712,782 of more than 2 million residential real estate properties were assessed as part of this year’s group.
Assessments for the 2024 group of homeowners increased by an average of about 23.4% across the state, and by 21% in Montgomery County.
For seven consecutive years, all 23 counties and Baltimore City have experienced an increase in property values, Department of Assessments and Taxation Director Dan Phillips said in a press release. About 96.9% of Maryland homes assessed for 2025 saw an increase in property value, according to the department.
Housing and finance experts say there are a few reasons why a homeowner’s assessment may be higher than expected.
Coveyou said the same factors that affected home values last year continue to be at play. Due to a decrease in available housing stock, home values are increasing.
“That is absolutely still the case this year. There is still low residential stock, and that leads to higher prices,” Coveyou said.
How to appeal
While homeowners should expect to see an increase consistent with those across the state, they still can appeal their assessment if they think there is an error.
Homeowners can choose to file the appeal on their own or meet with a real estate expert. To file an appeal, homeowners will need to provide income statements, tax documents, rent information if they are landlords and other information that gives the most detailed scope of the property.
The appeal form and more information on how to file are available on the Maryland Department of Assessments and Taxation website. Appeals must be filed by Feb. 13, which marks 45 days after they were sent out by the department.
Some homeowners may also qualify for state tax credits, according to Phillips.
“As part of our Tax Credit Awareness Campaign, each reassessment notice includes the status of the property as the owner’s principal residence and the status of their Homestead Tax Credit application,” Phillips said in a Dec. 30 press release. “Owners are encouraged to apply for the Homestead Tax Credit if the property is their principal residence and they have not applied.”
The Homestead Tax Credit may limit the owner’s principal residence taxable assessment from increasing by more than a certain percentage each year regardless of their income level. Another state program, the Homeowners’ Tax Credit, provides relief for limited-income homeowners by setting a limit on the amount of property taxes that they are responsible for based on their income.
