Property Taxes in Baltimore, Maryland

The Assessment Process                    jump to tax rates

Each county, and Baltimore City, set their own Property Tax Rate.  The process of assessing properties is performed by the Maryland Department of Assessments and Taxation.  The theory is that by the State performing this service - and separating the valuation process, all properties have a chance at being assessed independently and fairly.  

An appraiser is assigned a territory and that territory , or Assessment District, is divided into three areas.  Each area is re-valued every three years.  The appraisers job is to estimate the fair market value of every property in his District.  One is advised to keep in mind that these valuations are performed on a mass-scale.  Therefore, often times the Assessed Value is not a true reflection of a property's market value due to the nuances of each individual property.

The property owner is sent a notice of the new assessment in December and has until the first week of February to file an appeal.  Click Here for more information on tax assessment appeals.  Click Here for tips on preparing for your tax assessment hearing.  The difference between the new value and the old value is phased-in over a three-year period.  For example, if the old value was $100,000 and the new value is $130,000, the property owner would be taxed at $110,000 the first year, $120,000 the 2nd year, and $130,000 the third year.  

Frequently Asked Questions: 

Do I get an immediate assessment notice when I purchase a property?
No.  A recorded sale does not trigger a new valuation of the Property.  The property would be valued based on the assessor's opinion of its "fair market value" at the time of that district's next tri-annual assessment.  The last sales price may be a factor in the assessor valuation, but recent sales activity and the owner's response the "Income Questionnaire" play a large role.

What affect does a Ground Rent have on my property tax assessment?
It should have no affect.  Most ground rents provide that the owner pay all of the property taxes.  Also, since the "tenant" has full use of the land, as if it were his own, a ground rent has little to no affect on the tax assessment.

What about Special Benefits Districts?
There are several Special Benefits Districts in Baltimore.  The citizens in these neighborhoods voted in favor of the Special District.  Property Owners in these neighborhoods pay a surcharge on their property tax rate (usually 30-40 cents).  The money collected goes, not to the City, but to the Special Benefits District Office.  Typically, this office manages the street cleaners and safety guides for the area.  The Charles Village Benefits District (www.CharlesVillage.org) manages the greater Charles Vilage area.  The Mid-Town Benefits District covers Mount Vernon, Bolton Hill, Mid-Town, and the Arts District.  The Downtown Partnership covers the downtown business district.

What are the tax rates?

To calculate Property Tax, multiply the assessment (or fair market value) by the total tax rate.  For example, a $100,000 property in Baltimore City is $100,000 x $2.458 for a tax bill of $2,458.

To calculate Transfer Tax, multiply the purchase price by the Tax.  For example, a $100,000 property in Baltimore City is $100,000 x 2% = $2,000.  Custom is that the buyer pays 1/2 and the seller pays 1/2.  Also, State tax is reduced to .25% if the purchaser is a first-time Maryland home buyer purchasing a primary residence.

The recordation tax is applied to deeds and mortgages (on refinancing) recorded in the land records.  A $100,000 purchase, divided by $500 equals 200 x the $2.75 rate for a total of $550.

Copyright © 2006 Ben Frederick Realty, Inc
Last modified: 08/04/06